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Consumer behavior

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Burberry Case Study about Consumer Behavior

15 Pages Posted: 10 Feb 2020

Chenoy Ceil


Date Written: May 12, 2018

Consumer behavior is an essential part of the marketing for brands that are trying to influence the purchasing behavior of consumers. Burberry as a brand has been able to influence the purchase decisions of consumers by utilizing motivational, perception, personality and lifestyle strategies. This paper looks at the various factors that are utilized by Burberry that act as marketing stimulus for influencing the purchasing decision of their consumers. Some recommendations dealing with the brand perception of Burberry are also provided to help Burberry improve their sales and create a unique fashion brand for itself. Motivation, personality and emotion are important factors that affect consumer decision making, especially in the case of high fashion products. Looking at all these various factors in detail, this paper concludes that motivation, perception, personality and lifestyle have been carefully utilized by Burberry to reposition its brand for the modern age.

Keywords: chenoy ceil, consult corportes, consumer behaviour, purchasing decision, fasion brand

Suggested Citation: Suggested Citation

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5 mini case studies about understanding and serving the customer

Understanding What Customers Want: 5 mini case studies

This article was originally published in the MarketingSherpa email newsletter .

Mini Case Study #1: 34% increase in conversion for powdered health drink company by helping customers come to their own conclusions

A single-product company that sells high-quality, all-natural, powdered health drinks engaged MECLABS Institute to help better understand their potential customers and increase the conversion rate of prospects reaching the homepage.

The original homepage took a claims-driven approach – it provided several bold statements about what the product would do for a customer with no information about the product to help the customer understand why it would work for them. Here is a look at the upper left of the original homepage.

Creative Sample #1: Upper left of original homepage for health drink company

Creative Sample #1: Upper left of original homepage for health drink company

The MECLABS team created a version of the homepage that took a conclusion-driven approach – instead only trying to convince potential customers with only bold claims about the product, the homepage copy included information about the product to help customers understand why the product would help them.

Creative Sample #2: Upper left of treatment homepage for health drink company

Creative Sample #2: Upper left of treatment homepage for health drink company

The team tested this version as the treatment against the original homepage (the control) to help better understand what communication style customers would respond to.

The treatment generated a 34% increase in conversion rate.

This experiment highlights a classic disconnect between customers and marketers. If you work in a company or with a client, you have intimate knowledge of the product and believe in its effectiveness. You spend all day thinking about it. You personally know some of the people who designed it. Your paycheck depends on the success of the product.

A customer does not have this same understanding or belief in the product. They have a significant gap in their knowledge about your product. Bold claims alone are not enough to close that gap. They have to understand why the product will work and come to their own conclusions about the company’s ability to deliver on its promises.

You can learn more about this experiment in The Conversion Heuristic Analysis: Overcoming the prospect’s perception gap from MarketingExperiments (MarketingSherpa’s sister publication).

Mini Case Study #2: Bags company increases conversion 191% by adding clarity to homepage

“I'm the CEO of Doubletake , a tennis and pickleball bag company, but I spent the majority of my career focused on messaging and research, consulting as a strategist for top brands for the last 10 plus years, and in-house prior to that. I'm almost embarrassed that I have this example to share, but I thankfully came to my senses!,” Shawna Gwin Krasts told me.

“It is interesting that crafting messaging/copy for products that aren't ‘your baby’ is so much easier – there is just more distance to see it for what it is. If this wasn't so near and dear to my heart, I would have caught it in a second.”

The team launched its homepage with only the headline “Sports Meets Style” over a photo of a bag. The headline was meant to differentiate the brand from competitors that were either only sporty or fashionable. Below the headline was a call-to-action (CTA) button with the word “shop.”

Creative Sample #3: Previous homepage copy for bag company

Creative Sample #3: Previous homepage copy for bag company

Internally it seemed obvious that the company sells tennis and pickleball bags since a bag was in the photo.

But they came to realize that it might not be as clear to website visitors. So the team added the subhead “Gorgeous Yet Functional Tennis and Pickleball Bags.” They also added the word “bags” to the CTA so it read “shop bags.”

Creative Sample #4: New homepage copy for bag company

Creative Sample #4: New homepage copy for bag company

These simple changes increased the website's conversion rate by 191%.

“It is so important for marketers to get out of their own heads,” Krasts said. “I suppose this is why I struggle with messaging so much for Doubletake. I am the target customer – I have the answers in my head and I suppose my natural curiosity isn't as strong. But clearly, I also have to remember that I've seen my homepage 10,000 more times than my customers, which means things that seem obvious to me, like the fact that Doubletake is a tennis brand not a reseller, might not be obvious.”

Mini Case Study #3: Online motorcycle gear retailer doubles conversion with personalized emails

There are ways to better tap into what customers perceive as valuable built into certain marketing channels. Email marketing is a great example. Marketers can build off information they have on the customer to send more relevant emails with information and products the customer is more likely to value.

"Very early in my marketing career I was taught, 'You are not the target audience' and told to try to see things from my customer's perspective. Empathizing with customers is a good start towards seeing products from the customers' perspective, but marketers really need to focus on quantifiable actions that can help identify customers' needs. That means continuous testing across messaging, price points, packaging, and every other aspect of a product. This is where personalization can really shine. Every time a marketer personalizes a message, it brings them closer to their customer and closes that gap," said Gretchen Scheiman, VP of Marketing, Sailthru.

For example, 80% of the email messages RevZilla sent were generic. But the website sells motorcycle parts and gear to a wide range of riders, each with their own preference in brand and riding style. The online motorcycle gear retailer partnered with Sailthru to better connect with customer motivations. The team started by upgrading the welcome series for new customers by personalizing the email messages based on the customers’ purchases and preferences.

The company has tested and added many new triggers to the site, and now has 177 different automation journeys that include triggers for browse and cart abandonment as well as automations for different product preferences, riding styles and manufacturer preferences.

The conversion rate from personalized email is double what RevZilla was getting for generic batch-and-blast sends. Automated experiences now account for 40% of email revenue. Triggered revenue is up 22% year-over-year and site traffic from triggers has increased 128% year-over-year.

"Customizing the buyer journey isn't about one long flow, but about lots of little trigger points and tests along the way. For any marketer that is intimidated about getting started with personalization, it's important to realize that it's more like a lot of small building blocks that create a whole experience. We started with a custom welcome series using testing and built from there. We're still adding new tests and new trigger points, but it's with the same concept that we started with,” said Andrew Lim, Director of Retention Marketing, RevZilla.

Mini Case Study #4: Pet protection network increases revenue 53% thanks to survey feedback

Huan makes smart tags for pets to help owners find their pets if they go missing. Initially, the company focused on the technical features in its homepage copy. For example, the tags don’t emit harmful radiation, are water-resistant and have a replaceable one-year battery.

From customer feedback surveys, the team discovered that customers purchased the product because they were worried they wouldn’t be able to find their pet if the pet went missing. This discovery prompted the team to change its messaging.

The new messaging on the homepage read, “Keep your pet safe and prevent heartbreak. Huan Smart Tags help you find your missing pet automatically.”

Revenue increased 53% increase following the change in messaging. “We immediately saw an increase in engagement on our website, with a lower bounce rate, higher click-through rate and a higher conversion rate. There were also a few people who messaged us on social media saying how our new message resonated with them,” said Gilad Rom, Founder, Huan.

Mini Case Study #5: Talking to new customers leads SaaS to change strategy, increase sales 18%

When Chanty launched, the marketing messages focused on pricing since the Saas company is 50% less expensive than the best-known competitor. However, when the team started talking to customers, they discovered most people had switched from the competitor for different reasons – ease of use, better functionalities in the free plan, better experience with the customer support team, and a better mobile app.

The team changed its marketing to focus around these product attributes and only listed pricing in the end as an additional benefit.

“It turned out that this was the way to go because we attracted people who wanted a better experience, rather than just customers who wanted to save money. After six months of implementing this new marketing and sales strategy, our sales grew by 18%,” said Jane Kovalkova, Chief Marketing Officer, Chanty.

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Home » Management Case Studies » Case Study on Consumer Behavior: Gillette

Case Study on Consumer Behavior: Gillette

When most people hear “GILLETTE”, one thing comes to mind–Razors. That’s to be expected, since safety razors were invented by King C. Gillette in 1903, and the product in various forms has been the core of the company’s business ever since. Few firms have dominated an industry   so completely and for so long. Wet-razor shaving (as distinct from electric razors) is a $900 million market. Gillette’s share is 62 percent, with the remainder divided among SCHICK–15 percent, BIC–11 percent, WILKINSON sword–2 percent, and a number of private brands.

Gillette would like to achieve a similar position in the men’s toiletries with a new line of products called the GILLETTE Series. However, its record that market is spotty at best.

Case Study on Consumer Behavior: Gillette

One Gillette success, Right Guard Deodorant, was market leader in the 1960’s. Right Guard was one of the first Aerosols, and it became a family product which was used both by men and women. However, the product has not changed although the deodorant market has become fragmented with the introduction of antiperspirants, various product forms and applicators, and many different scents. As a result, Gillette slipped to third position in deodorant sales behind P & G and Colgate–Palmolive.

An even more embarrassing situation is Gillette’s foamy shaving cream, a natural fit with the razor business. S. C Johnson and Sons Edge Gel have supplanted that brand as the leading seller. These experiences created frustration at Gillette. Despite its preeminence in razors and blades, the company has been unable to sustain a leading position across the full range of toiletries.

Gillette is using its most recent success, the sensor razor, as a springboard for its new toiletries. The Sensor story provides the background necessary to understand the marketing of the Gillette Series, and also offers some insight into Gillette’s marketing prowess.

Sensor- a high technology cartridge razor- was a gamble for Gillette because it ran counter to consumers’ buying preferences. Disposable razors, which were produced by the French firm BIC in 1974, had gained control in nearly 80 % of the razor market by 1990. Gillette’s analysis showed that disposables provide a worse shave than a cartridge blade, cost more to make than a blade and are sold at a lower profit margin. Despite its disdain for the product, competitive pressure forced Gillette to introduce its own disposable, Good News.

As concern about the squeeze that disposables were putting on profit margins grew, Gillette began looking for a way to displace them. The company spent $ 300 million to develop a technology to significantly improve on the three attributes desired in shaving- closeness, comfort and safety. They came up with the Sensor, a razor with independently moving twin blades. The Sensor produces a superior shave, but it is also more expensive to produce than a disposable. So Gillette’s gamble was that a better shave would be enough to justify a premium price, and in the process, displace the successful but not a very comfortable disposable razor. In addition to the R & D investment, Gillette spent $ 110 in the first year to advertise Sensor. The strategy paid off. Estimated 1992 sales for the brand was $ 390 million, and equally important, the share of the market held by the disposables has gone down to 42%.

Gillette then moved to capitalize on the success of Sensor. The company had a line of toiletries in development, and the decision was made to tie them closely to sensor. The line consists of 14 items:

The products in the Gillette series were developed over a three year period at a cost of $ 75 million. They were tested on 70000 consumers. An indication of their newness is the fact that Gillette has 20 patents pending with them. Consideration had been given to introducing the line in 1992, but the introduction was cancelled by Gillette’s CEO, Alfred Zeien. He insisted that the line not be launched until consumer tests showed that each of the 14 products was preferred to the best- performing brand in its category.

All the products have a common fragrance that Gillette calls Cool Wave. They come in silver and blue packages like the Sensor, and the black lines on the packages match the grooved sides of the Sensor Razor handle.

The items retail at $ 2.69 each, 10- 20 % higher than the prices of major competing items. As was the case with Sensor, Gillette hopes that the products’ innovation will convince men to switch brands and pay the higher prices.

During the Gillette Series first year, the company spent $ 60 million on a joint advertising campaign with Sensor. Just like Sensor, the line was to introduce in January with ads on the Super Bowl. The campaign uses the same theme as Sensor. “The Best a man can get”. Initial TV commercials were one minute in length. They started with 15 seconds on shaving gels, and cream, followed by 30 seconds on Sensor and 15 seconds on aftershaves. The deodorants are advertised separately.

The Gillette series faces two major problems:

According to a Gillette Vice President, one of the most compelling aspects of the Gillette series is its synergy with the company’s core business—razors. If the new line is successful, Gillette anticipates adding other men’s grooming products such as hair sprays and shampoos. The firm’s CEO, Zeien says, “ we’re already the worldwide leader in blades, Will we be the world leader in other (toiletries) or not? That’s our goal.”

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Consumer Behaviour Case Study – Red Bull: Rampaging Through Global Markets

MKTG 2101 Consumer Behaviour Case Study -Red Bull: Rampaging through Global Markets 1. What segmentation base has Red Bull adopted to target customers? How should Red Bull further segment the market in the future? Red Bull have adopted a segmentation base strategy relating to market demographics. In particular the company has targeted young active people aged 16 – 29 years. Red Bull also use geography, identifying mainly university students and urban professionals who needed an ‘energy boost’ throughout their busy schedules and activities.

Mateschitz’ strategy aimed to target opinion leaders, believing that “the authority of one alpha bee can influence the buying habits of hundreds”. The Red Bull segmentation strategy also has an important psychographic component, particularly focussing on young people with attitudes, perceptions and lifestyles that are consistent with risk taking, fast paced and energetic behaviours; highlighted with the company motto “No Red Bull, No Wings”. In order to continue to succeed, I believe that Red Bull must optimise opportunities in the growing economies of India and China.

With greater economic freedoms and increased population growth in the middle class there are millions of young people falling into an attractive demographic for the Red Bull product. These young people will be the opinion leaders of the future in their countries, therefore holding the key for a success. Ways in which the company can expand its current activities to begin the process will lie in the correct marketing strategies; in particular I believe that the continued sponsorship of extreme events in these regions will be the perfect way to introduce young people to the product in an exciting new way. . How does Red Bull arouse the motivations of customers to purchase its energy drinks? Red Bull and Mateschitz explain “we are always looking for a more creative, different point of view” (Dolan 2005) to promote and present the product to the customer. This attitude is consistent with the brand personality and the image of its customers. It is for this reason that the company aligns itself with the young male - fast paced and energetic, interested in extreme sports, risky behaviour and never satisfied with the last thrill.

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The company too, is never satisfied, continuing sponsorship of extreme sports, owning Formula 1 racing teams and even developing its own sports such as BMX bike riding, Kite Boarding, Freeskiing, paragliding and more! The company is able to continually satisfy the needs of the market, arousing the customer with exciting new promotions and events which challenge the limits of human belief. For example, the Red Bull sponsored BMX events where the riders are attempting and completing unseen tricks and ‘death defying’ acts on a weekly basis.

The company has also attempted a viral marketing strategy, in order to get the product to the consumer in a cheap and effective way. However, these efforts are also well calculated, for example, the drivers of the Red Bull VW Beetle are generally extremely good looking females aged 19 – 28 years, attractive and corresponding for the targeted young male. 3. Describe the brand personality of Red Bull. Why do you think the concept of brand personality is so important to Red Bull?

Brand personality allows the consumer to develop a meaningful attachment to the product. People do not develop meaningful, long lasting relationships with the thing itself, it is when the consumer is able see the product with a certain persona, with feeling and meaning; it is then that the relationship develops and potentially blossoms. Red Bull and Mateschitz understand this and have created a brand personality that embodies excitement, energy and exhilaration, “Red Bull isn’t a drink, it’s a way of life”.

People are overwhelmed with the image, the amazing aura around the events and the excitement created by the athletes. Young people feel the product, the brand and the colours when they see these competitors doing the amazing things that they aspire to, enshrouded with the simple colours of silver and blue. A clean, refined image burned into their brain, connected to the memories of thrilling moments when their heart was pumping, hands were sweating and adrenalin was frantically pulsating through their bodies.

By creating these experiences for their consumer Red Bull are facilitating the development of important relationships with their product. In my opinion, maintaining brand personality and relationships is imperative for Red Bull. Mateschitz himself states, “We don’t bring the product to the people. We make it available and those who love our style come to us” highlighting his acknowledgement of the importance of people aligning themselves with the brand personality and developing a meaningful and long lasting relationship with the Red Bull product

References * Dolan, K. (2005). The Soda With Buzz. Forbes. com http://www. forbes. com/global/2005/0328/028 print. html * Sciffman, L. , O’Cass, A. , Paladino, A. , D’Alessandro, S. and Bednall, D. 2011. Consumer Behaviour, 5th Edition. Pearson Prentice Hall: Australia * Gschwandtner, G. (2004). The Powerful Sales Strategy Behind Red Bull. Selling Power. September. http://www. sellinpower. com

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Case Study- Consumer Behaviour

Sociologist, a Psychologist, a spiritualist and a Man tries to bring out different views on consumerism. It looks at consumerism from the perspective of its Economical and Sociological influence on the country and Psychological and Spiritual influence on Human beings. The article through the conversation tries to bring to the fore the positive and the negative impact of excessive spending and how it has changed the

Nay people, in a country with deep cultural roots live. The article brings about the positives of consumerism by stating it as freedom; freedom to choose what one Ants. It states that the excessive spending by individuals has indirectly contributed to research and automation of Jobs.

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The article talks about the contribution of excessive spending to the country. It states that the money spent by individuals on the company products have been used to fund research and pay pensions at the same time consumerism has improved lifestyle of the individuals.

The article also subtly mentions that not all products are for everyone as each product caters to a particular need. Among all this excessive spending there is one question that is left unanswered which is, how long will this continue? The speakers debate on the issue of how excessive spending is hampering the future growth prospects of the country. Rhea excessive spending by individuals today is leading to, lower saving for the future affecting the future financial security of an individual and also the country, as

Investments in assets is very low, the loss of value systems, declining value for education and the like.

Consumerism has created a generation of people who are Milling to satisfy the short term needs at the cost of long term development. People of the present generation have needs in the top three segments of Mascots need hierarchy model and a very few aim to satisfy only safety and psychological needs. His phenomenon has changed the people’s living style to from value-based lifestyle o material-based lifestyle, where every individual aspires to have a good car, a good house and identifies the self with non-living and materialistic things. The article towards the end highlights the sad state of the present generation where there is higher depression among people of present age when compared to the previous generations, with higher suicide rates and cases of unlawful behavior. All this aspiration for materialistic things has led to individuals lacking values and the country lacking assets for sustained growth.

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Consumer behavior case study.

Judging from the survey (Table 1), one can conclude that obviously the target market of the program is people with above the average level of income, who are over twenty one years old. The target market includes people who care about their sexuality and image.

The goals of the brand product placement seem to be as described below. The commercial of for example Martini brand is supposed to appeal the following: sexy, attractive and successful adults enjoy their lives, and drink Martini. If you drink martini – you are on your way to success and attractiveness. Opposite sex will like you a lot more if you drink Martini. Besides, Martini allows you to feel relaxed and confident. Martini gives you an opportunity to enjoy your life to a maximum.

As it is known from the theory about the consumer behavior, usually products and brands are placed in such a way that will allow attracting not only the direct target market, but also those who inhabit the surrounding of people, who belong to target market. For example if Martini is the sponsor of Sex and the City, and this movie is watched primarily by women aged 25-45, then the surrounding target people would be males, aged primarily 30-50.

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Therefore, it is quite common that the brands like Gillette and Durex are also introduced during the program. These product brands are targeting males who watch the same movie, or males who potentially are influenced by women who watch the movie. The appeal of Gillette commercial is the following: strong, attractive, successful and desired by women males use Gillette branded products. If you are one of the males and you are using Gillette, during shaving, your chances of being attractive to women are significantly higher. Besides, your self-confidence and physical strength increase, and therefore you are associated with strong, sexy, successful and attractive man.

Placement of Durex brand together with Gillette and Martini is also very logical. First of all, if the target audience associate themselves with successful and attractive people they are therefore sexually active. In order to make sexual contact with attractive person pleasant and safe, Durex suggests their products to satisfy the needs for safety and pleasure.

Placement of Dolce and Gabanna brand among Martini, Gillette and Durex during the program is also rather logical. Since, as it was mentioned earlier, primary target market of the program is the audience, which cares about their image and style, attractiveness and successfulness, the clothing from a fashionable and well known brand fits perfectly in the picture. The shoes and clothing from Dolce and Gabanna are determinants of style and fashion, taste and prestige. Fitting perfectly in the overall picture, the product of Dolce and Gabanna receives way more chances of attracting new customers and maintaining interest to their brand, than it would have, if they placed their product together with, for example Mc Donald’s and Dollar store.

Appearance of Toyota brand in the program also corresponds to the tastes and preferences of the audience form the suggested target market. Toyota is a car, which has a reputation of a reliable quality. The target audience of the brand is people with income above average, however not yet those who are hunting for luxury. The primary audience of the program corresponds to this requirement. At the same time, Toyota brand fits very well in the m=image of a successful, independent, sexy, confident and attractive adult.

From my point of view, this smart placement of product brands can and most likely will influence consumer behavior. Attractiveness of the characters in the program, which use these products will stimulate consumers purchase these brands more eagerly, than before.

A similar product placement and consumer orientation can be discovered, when visiting local malls. Let us look at four examples and compare their approaches to customer attraction and attempts to influence behavior of consumers in their target market: Wall Mart, Barneys, Queen Center and Marshalls.

Barneys malls are obviously emphasizing prestige of their stores, together with the comfort and nice music. Through the use of color, music, brightness and contrast management of the stores is trying to achieve this perception of the consumers. Barney suggests casual apparel and accessories, targeting relatively young market in a stylish environment that breaks from the flagship store’s refined, upscale atmosphere.

Wall mart is obviously targeting a different market. They aim to attract the buyers from average to below average income, suggesting special not expensive offers. Wall Mart sells all kinds of products. The atmosphere of the store is correspondent: the consultants are not keeping the image of prestigious store, but rather are trying to be nice, practical and helping.

Marshalls mall is oriented on the target market consisting of people with average level of income, who enjoy their lives and look for good deals on goods with a reliable quality. The atmosphere of the mall is casual and nice. Sounds, colors and workers of the store make customers feel comfortable and cozy. There is no appeal to prestige and elite items.

Queen Center is a store situated in New York. This place also appeals to the middle and upper middle class buyers of all ages. They also emphasize “smart deals” and comfortable, yet not too fancy atmosphere.

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Buying Green: Consumer Behavior

Do purchasing green products, such as organic foods and electric cars, give consumers the moral license to indulge in unethical behavior?

consumer behaviour case study

Green consumer products, such as organic food, fair trade coffee, or electric cars, represent a fast-growing segment of the consumer market. In the area of organic food alone, data from the Organic Trade Association reveals that consumer demand in the United States has seen double-digit growth every year since 1990. In 2014, the organic food market reached almost $40 billion in sales. Consumers of these products tend to be seen in a more positive light—they are deemed more ethical, more altruistic, and kinder than people who do not buy green products. But is there another side to this kind of consumer behavior?

In a series of experiments comparing consumption of green and “conventional” products, psychologists Nina Mazar and Chen-Bo Zhong demonstrated that those people who bought green products—like eco-friendly laundry detergent or organic yogurt—were less likely to share money with a stranger, more likely to cheat on a task in which they could earn money, and more likely to steal money when they thought they would not get caught. As the psychologists stated, “purchasing green products may license indulgence in self-interested and unethical behaviors.”

Mazar and Zhong, whose study received considerable media attention in their native Canada, as well as in American and British publications, said the results surprised them. Initially, they expected green products to provide a halo effect, whereby the positive impressions associated with green consumption would lead to positive outcomes in other areas. “Given that green products are manifestations of high ethical standards and humanitarian considerations, mere exposure [to them would] activate norms of social responsibility and ethical conduct,” said Mazar and Zhong in an interview.

But as the results indicate, the opposite can be true. “The message of this research is that actions which produce a sense of self content and moral glow can sometimes backfire,” Mazar stated in another interview.

These patterns have been shown to extend to other shopping scenarios. For example, one study tracked scanner data and shopper receipts at a California grocery store. Those shoppers who brought reusable grocery bags with them were more likely to buy environmentally friendly products, like organic food. But they were also more likely to buy indulgent products, like ice cream, cookies, candy, and cake. The researchers followed up this study with a series of experiments that showed these moral licensing effects only happened when the decision to bring the reusable bags was at the shopper’s discretion. When shoppers were told that the store required customers to use cloth bags, licensing effects disappeared and customers chose not to buy indulgent products. Only when consumers felt like using cloth bags was their own idea did the moral licensing effects hold.

Discussion Questions

1. Beyond green consumption, what other types of products might bring about similar kinds of moral licensing effects? Can you think of instances in your own life when your purchase choices have licensed you to make decisions that were less than ethically ideal? Explain.

2. Do you think these moral licensing effects are common across all kinds of green consumers? Or are there other factors (i.e. demographics, psychographics) that might either exacerbate or weaken the effects? Why or why not?

3. The authors of the study, Mazar and Zhong, initially thought green consumption would have a positive spillover effect and encourage positive behaviors. Why do you think they found the opposite?

4. What steps do you think can be taken to help minimize or mitigate these types of moral licensing effects among green consumers? Explain.

5. If you were the brand manager for a green product, for example an organic food item or an energy-efficient appliance, how would you go about marketing the product knowing these licensing effects were possible?

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BUS 5656 Consumer Behavior

Case Study Assignment

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Select one of the supplied case studies to analyze.  Read the article first, before you prepare to respond to the questions.  Your analysis of the case should be 3-4 pages, double-spaced and include 3-5 peer-reviewed references (in addition to the text) to support your analysis. Use APA format for references and format of the paper.

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Example Of Essay On Starbucks Case Study: Consumer Behavior And Environmental Influences

Type of paper: Essay

Topic: Marketing , Customers , Products , Starbucks , Employee , Workplace , Coffee , Business

Words: 1600

Published: 02/08/2020


Starbucks is one of the most trusted brands in the world with more than 20,000 stores in 62 countries (Loxcel, “Loxcel Starbucks”). In order to achieve those results, the company had to implement high standards for employee training, customer service, real estate acquisition, and product quality. With a mission statement that focuses on building a great working environment, embracing diversity, promoting human dignity, high standards of product creation, Starbucks does not offer only products to consumers, but it also offers satisfaction to both employees and customers in different communities.

Successful Store Positioning. It is possible to notice that Starbucks is located at high-traffic areas, such as airports, commuting routes, or college campuses. Location can be a significant factor that determines success because the company can gain more exposure, thus saving resources on marketing campaigns. Starbucks Focuses on Expansion Constantly. New stores are constantly opened because of licensing and international expansion. While the company had only 6,000 stores in 2003, they currently have stores opened at more than 20,000 locations worldwide. Employee Quality. When compared to the average fast-food industry turnover rates, Starbucks has one of the lowest barista turnover rates in the industry, which is estimated at 70 percent (Moon and Quelch, “Starbucks”). Diversification of Products. Although Starbucks started out as a coffee shop, they expanded into other markets to increase revenue. For example, they currently offer tea, iced tea, smoothies, and other beverages in addition to coffee. When the company added sandwiches, hot breakfasts, and other food items on the menu, they also started competing with fast-food companies, such as McDonalds, which responded to the challenge by adding coffee to their own menus. Reduced Quality. Because of high demands, Starbucks had to place more emphasis on efficiency rather than product quality. An example is the introduction of flavor-locked packaging, which does not provide the same taste as fresh ground coffee. Apart from minor sacrifices, it is possible to notice that the company still follows the guidelines used to ensure their decisions are in compliance with their mission statement.


Positive Aspects. The first positive aspect I appreciate is high-standard employee training and customer service. Because Starbucks focuses on both employee and customer satisfaction, they deserved their success as an international brand. Second, Starbucks frequently creates new coffee-based drinks, and I respect their ability to produce innovative products that capture attention and entertain the customers. Finally, Starbucks has an environmental mission statement that recognizes the importance of using environmentally friendly products and promoting environmental responsibility as one of the corporate values. Because of their commitment to environmental leadership, they are more likely going to gain trust and credibility among their consumers. Negative Aspects. Because Starbucks is a chain store, some sacrifices need to be made in order to satisfy the needs of a growing audience. I personally do not agree with the company’s choice to venture into other types of beverages, such as tea and smoothies, or include a variety of foods on their menu. The second critique is the over-saturation caused by opening too many locations after real estate acquisition standards were lowered to satisfy the needs for rapid growth (Stone, “Lax Real Estate”). Although expansion is required to increase revenue and profitability, it is important to consider that increasing revenue by diversifying offers can lead to lower product quality because it is exchanged in favor of quantity.

Gourmet Coffee Buying Decisions

Target Market. According to Starbucks CEO Shultz, the target market in the early stages of the company’s development consisted of white-collar patrons, who were well-educated and between 25 and 44 years of age (Moon and Quelch, “Starbucks”). Because of that description, is possible to notice that their primary market is more likely going to be inclined to gourmet coffee. Market Needs. Tending to the needs of their market is one of the key reasons for Starbucks’ success. According to the company, people who visit Starbucks want a cup of coffee, but the ambient invites them to stay (Moon and Quelch, “Starbucks”). In a sophisticated environment, gourmet coffee becomes a primary choice over regular coffee. Innovation. Drinking coffee has become a routine for most people, so it is natural to assume they will desire new experiences occasionally. Because Starbucks offers a variety of products, customers can experience drinking coffee as a pleasure rather than a habit. The need for new experiences and the availability of those experiences is one of the reasons people are more likely going to buy gourmet coffee. Fear of Missing Out. Scarcity is an important principle in sales. Because several gourmet drinks and featured offers are branded by Starbucks, they cannot be obtained in other stores. Some offers may also be a limited edition drink, which makes them desirable to consumers. Incentive Programs. To reward customers for their loyalty, Starbucks offers a loyalty program for frequent customers. According to their Terms and Conditions, customers are entitled to several benefits, such as free drinks and meals on their birthday, personalized offers, and more (Starbucks, “My Starbucks Rewards”). With an incentive program, customers are more likely going to choose gourmet coffee for better rewards or as free gifts for their loyalty.

Environmental Influences in Buying

Ambiance. Several regulations and decoration choices contribute to the ambiance in Starbucks stores. The goal of their ambiance is to create returning customers by encouraging them to stay in an environment that emphasizes building a community, features suitable music, and offers a comfortable physical layout. For example, the seating areas in stores are designed to encourage lounging. The music needs to be soothing because the customers will desire to stay longer and relax in a slow-paced environment, which helps them distance from the fast-paced environments they are usually exposed to both at home and work (Thompson and Gamble, “Starbucks Corporation”). Regulating the Aroma in Stores. Aromas help people make buying decisions because smell affects taste significantly. According to Starbucks’ regulations, employees are encouraged to avoid strong perfumes and colognes (Moon and Quelch, “Starbucks”). The food is also covered and smoking is forbidden. With those regulations, the smell of coffee is emphasized as the strongest scent in the store, and may influence the buyers’ decisions as gourmet coffee smells more appealing than regular coffee. Employee Training. Starbucks understands that satisfied employees can offer better customer service (Moon and Quelch, “Starbucks”). For the company, both customer and employee loyalty are important because employees can form bonds with customers and (Moon and Quelch, “Starbucks”). Several regulations are in place to ensure customer service is exceptional. For example, employees are taught to offer free refills to customers who spill their drinks or offer compensations, such as coupons, to dissatisfied customers (Moon and Quelch, “Starbucks”). Building Trust. Demonstrating expertise in the area of service is critical for gaining trust among the customers. Employees at Starbucks are not only trained to treat customers with respect, but they are also taught how to brew excellent coffee and how to make recommendations to customers. By presenting their knowledge about coffee, employees are observed as expert baristas and have more influence over the customers’ decisions. Exposure to High-Quality Brands. Apart from serving coffee, Starbucks also has a store in which they sell premium coffee. As visitors become regular customers, they will be frequently exposed to those brands, and they may eventually decide to try one of the gourmet coffees offered at Starbucks.

Starbucks Web Site Review

Although the professional graphical design is evident on the Starbucks web site, the content and elements are most likely not distributed in a way that will maximize their marketing efforts. The main drawback is offering visitors too many options, which makes it difficult for the customer to make a decision when buying products. However, it is also important to note that the landing page shows news related to their menu or offers and recent informative blog posts. With that approach, the visitor has the option to notice important updates and offers immediately. In the featured offers, Starbucks shows concise descriptions and an image for each featured product. When a visitor clicks on a product, the description also includes nutritional values. Their approach is excellent because presenting fewer products always improves conversion rates, and a beautiful image makes the product more desirable (Gehl, “12 Ways”). However, it is also important to consider that the description is aimed at describing the flavors, which is an effective way of marketing a product to people who are already inclined to gourmet coffee or enjoy experimenting with new flavors. While the featured offers may increase sales among that population, they probably do not increase sales among other customers because they do not understand how buying those products will benefit them (Gehl, “12 Ways”). For example, clearly stating health benefits in the product description of the ingredients used could increase more sales because people will have a reason to buy the product other than great taste.

Works Cited

Gehl, Derek. “12 Ways to Increase Online Sales.” Entrepreneur, n.d. Web. 7 June 2013. Loxcel. Loxcel Starbucks Map Showing 20,834 Stores. 2013. Loxcel, Toronto. Loxcel Cell Tower & Map Consulting. Web. 7 June 2013. Moon, Youngme, and John Quelch. Starbucks: Delivering Customer Service. Harvard College. Boston, MA: Harvard Business School, 2003. Web. 7 June 2013. Starbucks. “My Starbucks Rewards™ Program – U.S.” Starbucks, 2013. Web. 7 June 2013. Stone, Brad. (2008). Lax Real Estate Decisions Hurt Starbucks. New York Times, 2008. Web. 7 June 2013. Thompson, Arthur A., and John E. Gamble. “Starbucks Corporation.” The McGraw-Hill Companies, 1999. Web. 7 June 2013.

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