Part 1 – Consumer Behavior: How People Make Buying Decisions
1-Consumer Behavior Model: Environmental factors-Starbucks
The Starbuck Company is dealing with an immense range of customers due to the high quality and differentiated coffee products. However, with the passage of time, the behavior of the customer changes due to different factors. Both macro and micro environmental factors are affecting consumer behavior. The two most important factors are technology and personal situation. Technology and personal situation are derived from macro and microenvironment, respectively. Concerning technology, this has been revealed that the company has integrated with the technology to attract and shape consumer behavior. There is a perception that Starbuck is just selling coffee to its customers. The company is using technology in different stores. For Instance, different coffee machines are linked to the cloud systems to evaluate the performances of the coffee machines. Also, the technology is also triggered with the customer preferences. Thus, through technology, it seems easy for the company to shape the production services for the customers. The customers, on the other hand, depict the perception in the form of satisfaction and loyalty, as due to being preferred through technology, he makes repetitive decisions. On the other hand, the personal situation is also shaping the behavior of Starbucks. Regarding the income level, financial conditions, happiness, frustrations and physical condition, the customers may depict the different buying decisions and behaviors, and Starbucks considers these behaviors to keep the product and services in the limelight for the customers (Berman, 2017).
2-Consumer Behavior Model: Consumer factors-Starbucks
Occupation, lifestyles, and age are three consumer factors regarding the offering of Starbucks Company. The age of the customers shapes the behavior, as he may consider the Starbucks products differently. For Instance, a young adult may consider the coffee products to reduce the stress. Also, he may relate different things such as memories, love, and relaxation. Conversely, teenagers may consider the Starbucks products as delicious taste, which fascinates them, and as a result, they can make the decisions. The occupation also creates an impact on consumer behavior, as it is integrated directly with the income level of people. If Starbucks contains lower prices of some coffee products, people can be quite responsive. Interestingly, businesspeople love to have coffee with free fresh in the offices. Thus, the occupational factor is quite integrated, and the company is targeting the customers, based on the different occupations. The third factor is lifestyles, which also shapes human behavior, deriving insight from the consumer behavior model; the living standard makes the intentions. Some people love to have luxury products from the company and some people like the traditional ways to have the product and services. Accordingly, to attract customers, the company is depicting a moderate environment to make the product in the flow (Harris, 2015).
3-Role of involvement in consumer decision-making in Starbucks
Role of involvement in the decision-making process has been justified in many organizations. There are two types of involvement such as low and high involvement. Relative to the different products from Starbucks, the customers are usually containing an intense or high-level evaluation of the product. For Instance, when company portrays the features of the products, the customer may investigate the coffee ingredient, prices, uniqueness and different package along with the comparison with other competitors. Pertinent to the level of involvement, the customers of Starbucks usually contain complex buying behavior. It is a fact that the customer makes a comparison of coffee products, and based on the wide knowledge, they make decisions (Meola, 2016).
4-Consumer decision-making process for Starbucks products
The six steps in the buying decision or process of the customers need recognition, information search, and evaluation of alternatives, purchase decision, and post-purchase behavior. The customers of every organization, including Starbucks, express these processes to decide on different products of the company. The role of marketing is in fame in these different processes. When searching the information for the products, the customers look for different advertisements and promotions, being conducted on the media channels. The Starbucks Company attracts customers through exceptional visualization of the products along with the comprehensive description. Hen customer intends to assess the information to make the buying decision; he may derive the insight from the advertising and promotions, a main aspect of the Starbucks marketing process. Thus, the marketing strategy is triggered with the information, which seems valuable for the customers. Interestingly, through the assessed information, perceptions and beliefs can also be created (Team, 2016).
Part 2 – Market Segmentation, Targeting, and Positioning
1-Segmentation for Starbucks
There are four main segments of the customers. These segments are geographic, demographic, behavioral and psychographic. Concerning the prominent segments, which are related to Starbucks, these are behavioral and psychographic. Relative to the different variables from these segments, this has been revealed that these variables create an impact on both, marketing process of the company and the buying decisions of the customers. The variables in the behavioral segments are attitude, readiness, and Benefit sought. The customer attitude is the main consideration of Starbucks. The customers are usually quality conscious, Enthusiast, and price conscious, it shapes the attitude of the customers, as they make the brand special. Quality and access are linked to the benefit sought, which creates the impact on the customer behavior. The readiness depicts the intentions of buy and awareness, which are also targeted by the company. For Starbucks, the pertinent choices are benefit sought and readiness, as a formulation of the marketing strategies takes directions from these variables in the competitive coffee market. In response, Starbucks management’s main intention is differentiation and targeting, which can fill these needs. Obviously, differentiation can be demonstrated through quality and prices. In psychographic segments interest, opinions and cognitive level of the customer are three different variables. The positioning process can justify the opinions, interests and cognitive level of the customers and in the end, attractions, buying decisions and sales can be increased (Team, 2016).
2-Targeting for Starbucks
For Starbuck, the most important segment of the company is behavioral, and it creates an impact on the growth of the company. It is a fact that the company intends to target customers, which contains pertinent attitudes and aggressiveness in the buying decisions and sales process. The company creates awareness for the customers in different media channels and makes them loyal to increase sales. The most important thing is to make the customers responsive. The name of my target is “regular shoppers,” and obviously, there is a need of pertinent target marketing strategy. This target customer leads towards buying sustainability, and ultimately, it has a direct impact on the company growth for both, short and long run (Meola, 2016).
3-Target market strategy of Starbucks
It is necessary for the Starbucks Company to keep targeting these customers, which are quality and price conscious. The company is so certain of its quality products, which reflects the confidence of the company. To sustain the growth, it seems imperative to target these customers. Comparatively, there is an immense range of customers, who make their preferences regarding quality. There is a huge chance for the management of the company to get the customers and make them loyal. If the regular shoppers in the competitive market are retained due to the consideration of attitudes, aggressiveness, and quality, the sales are expected to sustain. Thus, being a consultant to the company, I would like to suggest the consideration of the behavioral segments instead of considering the new one, especially in the competitive market. The rate of customer conversion is quite high in the competitive market, and this is a huge risk for the management of loss the market shares and loyalty if they look for the new segments (Harris, 2015).
4-Positioning (Perceptual Map) for Starbucks
According to this perceptual map, the two main competitors of the company are Dunkin Donuts and McDonald. Concerning the Dunkin Donut, the management of this company is considering the high prices for the customers to increase the revenue stream. This company is taking advantage of the loyal customers and immense range. On the other hand, McDonald is focusing on the low prices, with the limited coffee items for the customers. Conversely, the Starbuck Company is looking to contain the highest quality instated of focusing on the pricing strategy. The main intention of the company is to never compromise on quality, and this is one of the best positioning strategies of the company. The proposed positioning strategy is low prices and high quality instead of considering the profitability. It makes the minds of the customers and let the company position better in the minds. Comparatively, the two competitors are quite assertive prices. To respond differently, the pertinent strategy is to make new customers in the regular shopping pool along with the sustained quality. Based on the insights derived from this map, the positioning strategy can be formulated and executed in an effective manner (Berman, 2017).
References
Berman, C. (2017, September 26). Starbucks Marketing Strategy. Retrieved from https://bizfluent.com/info-7753520-starbucks-marketing-strategy.html
Harris, R. (2015, JULY 28). Why Starbucks Is Winning At Loyalty. Retrieved from http://marketingmag.ca/brands/why-starbucks-is-winning-at-loyalty-152974/
Meola, A. (2016, April 4). Starbucks plans to spend even more to improve its mobile app. Retrieved from http://www.businessinsider.com/starbucks-mobile-app-proves-successful-marketing-strategy-2016-4
Team, T. (2016, September 19). Let’s Look At Starbucks’ Growth Strategy. Retrieved from https://www.forbes.com/sites/greatspeculations/2016/09/19/lets-look-at-starbucks-growth-strategy/#75d5ae613d71
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