Consumer Decision Making Behavior Essay

Introduction

Starbucks restaurant is a brand name known within the United states for provision of high quality beverage especially coffee drinks. The company has developed through good experience on provision of high quality products. The restaurant is known for employees who are well informed about coffee and best ways of producing products suitable for human consumption (Keegan and Green, 2002).

This gives the restaurant one of the best brand images amongst consumers making them feel some sense of prestige whenever they associate with the brand. The marketing concept adopted by this Company focuses on identifying customer needs within various market segments and responding appropriately.

Marketing strategies applied by any company should conform to the already designed marketing policies, and should have capability of achieving global competitive advantages (Bartlett and Sumantra, 2010; Wills and Jacobs, 1991).

Concept of status Consumption

The image of the organization attracts consumers; they are often attracted to brands portraying good public image. Organizations which enjoy good reputation have the ability of attracting pubic attention hence pulling potential consumers. Even the employees at times are willing to take low wages just for the sake of being identified with organizations which portray strong public reputations.

The image’s ability to attract quality and experienced personnel leads to more positive consequences hence improvement on the organization’s profitability (Horton, 2005, pp 1-8). Consumers’ decision on the kind of services and products to purchase is normally influenced by the brand of the company.

Consumers sometimes are forced and willing to buy products from organizations with poor brand name only when the prices are low, conversely they tend to reward good image by paying high prices for their products (Cherenson, 2002). This idea could be utilized by marketers to ensure that their products dominate certain niches within the market owing to good image.

Products and services rendered should always relate to the needs of consumers within a particular market niche. For a company to succeed in the global market, it has to assess the needs and preferences of consumers (Pinto, 2008).

Marketers could utilize Starbucks brand name to supply range of products under the same umbrella at affordable prices. The other products could be milk and other soft drinks containing the company’s logo on the cover.

The manner in which the organization treats employees and how it conducts its business publicly has the ability of differentiating its brand from other related organizations within the same market set-up, hence reinforces the consumers’ loyalty towards it.

Precise and clear definition of organizations image usually communicates and creates renewed belief and confidence within the consumer. This is a good determinant of the organizations success (Bartlett and Sumantra, 2010; Wills and Jacobs, 1991).

Marketers should apply some flexibility in decision making and have the ability to take any challenge concerning Starbucks soft drinks within the market. Provision of non-fat milk owing to consumer demand led to expansion of Starbuck’s market base.

They embrace innovations and abide by their business mission enabling them to deliver quality services, and supply high quality products. It’s a quality-driven organization with products crafted to satisfy the consumer desires. They produce a variety of products to the market providing consumers with different options depending on their tastes

Market orientation

Marketers could utilize Starbucks connection between its reputation and the financial performance exposed within the stock market to capture consumers. At times consumers make their decisions on brand image based on overall annual financial performance.

The organizations stock market performance and secure prices presents core factors used in determining the market percentage which it commands. The extent to which Starbucks gains market share within United States improves helps in improving its profitability depending on the workable strategies employed by management and marketers (Kotler et al, 2001).

Usually the cost of buying high market share may be above the expected returns, however high shares automatically bring higher profits especially in cases where the costs of goods are low within a big market share.

Starbucks marketers should be actively involved in market actions which require detection and quick responses towards market changes like pricing methods, customer product preferences and technology. These actions lead to high financial performance (Kotler et al, 2001).

A company could hold a small market share but realize huge profits because of the high shares it holds within the market. This could best be attributed to quality products or services offered which wins consumers’ confidence and also hold down the costs (Wind, 1978).

Public relations could be used to help in expansion of the market through discovering and promoting uses of new products and further persuading consumers to use more of their products for their personal benefits. This has since encouraged consumers to buy more of Starbuck’s coffee leading to expansion of its market share hence increase in the level of sales (Kotler et al, 2001).

Target market Analysis

Any organization that wishes to have market success or high profitability should equip its marketers to ensure they win in the market place. Starbucks should utilize its public relations tools to gain the competitive advantage. This can only happen when the company offers unique advertisements on goods and services that other competitors do not offer.

They may utilize their instruments, like use of well trained staff to cover the special needs of certain market segments that are ignored by others. To win the public the company has to prepare to offer best prices for quality goods or unique qualities that entice consumers’ willingness to pay higher prices (Chandon et al, 2000).

Tough competitive environment may lead to breaching of some rules rendering public relations less important (Horton, 2005, pp 1-8).

Competitor’s strength and weaknesses could always be assessed by analyzing the kind of soft drinks and coffee the customers’ value in the market (Sinclair and Stalling, 1990). This could be achieved by asking the customers the benefits they value and the important attributes they use to grade the company to other competitors within the market industry (Blattberg and Golanty, 1978).

These relations help the marketers to identify areas which Starbucks look vulnerable which other competitors could easily utilize to topple them. The presence of competitors could at times result in more benefits since it helps in improving the total demand. In industries where competitors relate in harmony, there is sharing of market cost, improvement of products and easy introduction of new technologies (Kotler et al, 2001).

Consumer Behaviors based on Socio-Cultural Environment

The reputation of an organization is one of the factors which determine the level of its interaction with the local communities (Solomon, 1983). Starbuck’s ability to grow is dependent on the support it gets from the community in terms of labor standards, respect to cultural beliefs including land use and other key reputations (Doole and Lowe, 2008).

Public relations act as link which enables consumers to quickly adapt to Starbuck’s coffee within US environs. This enables the company’s easy analysis on the issues which might impact the society positively or negatively, hence adjust its services and products to suit public interest making satisfaction of customer interest the primary goal (Horton, 2005, pp 1-8).

Starbucks coffee could simply loose societal approval when it experiences trouble with the labor force, or lacks enough support within its native land. It could also loose reputation by not adhering to government’s policies and regulations. This could be very detrimental since it affects the market success of the organization (Ries and Trout, 1972).

This shows that good reputation and public relations should precede quality production of goods and services. Corporate social performance impacts organization’s profit levels by influencing its reputations. This acts as a direct influence on the company’s competitive advantage and ability to attract and retain experienced and talented employees (Horton, 2005, pp 1-8).

Consumer Behaviors based on Media exposure

Marketers could utilize the media which offers a point of contact between consumers and the organizations, since it allows for advertisement of Starbuck’s new products within the market (Fill, 2005). This stations the organization at the position where it attracts consumers and negotiates prices to the benefit of the industry.

The creation of awareness through the media expands the customer base and helps in increasing the sales. It helps in completion of most economic transactions by revealing the kind of goods and services, their qualities and price (Horton, 2005, pp 1-8).

The missing of crucial information is what sometimes leads to the act of consumers despising the product or service being offered. This could well be articulated through the media i.e. Television, radio or newspapers (Horton, 2005, pp 1-8).

Marketers could use advertisement and promotion as some of the tools which companies spend heavily on since they are likely to woe consumers and win their confidence. Any business organization which has got plans of dominating and operating within the market for long time should enhance the management’s relationship and reputation (Belch & Belch, 2001).

Consumer Behaviors based on Political Environment

Consumer relation enables the free flow of information which assists organizations in making informed decisions. This aid in building trust amongst Starbuck, the US government and the people, also the idea enhances the company’s credibility. However, there are times when journalist commentators are paid to promote political issues between rival companies.

Earlier reporters and editors could be paid large sum of money by companies to write in favor of their products and services. This promoted a lot of harm on other organizations who though having good reputation and quality services or products, are unable to penetrate market due to suppression and intimidation. This causes reduction in consumer trust hence loss of sales, market share and ultimately profit (Blair and London, 1981).

Marketing strategies concerning Consumer Decision Making Behavior

In a bid to perform more expansive business and win more customers on board, marketers could utilize different issues which have boosted Starbuck’s enthusiasm towards success in relation to consumer behaviors towards their products. These include; making affordable products, making the Company more accessible to consumers and making good public awareness programs (Anderson, 1982; Resnik et al, 1979).

Products Affordability; after thorough market survey, Starbucks realized the need to categorize clients on the basis of their social life. Therefore, at the event of increasing prices, the level of income of consumers becomes the first consideration (Smith, 1956). This is done so as to ensure that they are not suppressed by the change in prices. Starbucks also gives premium prices for all the services rendered to customers.

Priority is given to customers before implementing any new innovation that may affect the pricing methods (Baines et al, 2005; Chung, 2003). On availability issues, as the company expands its business operations, focus is placed upon strategic places which have good consumer base.

Starbucks increased the number of stores and offered services which satisfied the customer’s desires and needs i.e. those travelling, those at home and those in offices. Starbucks uses improved communication channels and also utilizes its strong brand name to woe customers.

The Company also entered into partnerships with other small companies in order to create channels through which they could sell coffee and coffee related products (Abratt, 1993).

Marketers should engage in the establishment of short-term principle actions which assist them in discovering right marketing principles to apply. The marketing strategies to be applied should be tested by use of selected measures in order to establish their effectiveness.

All activities within Starbuck depend on the already set targets based on the company’s vision statement. The controls based on consumer behaviors enable establishment of company’s progress and proper implementations of right plans which promotes sales (Srivastava et al, 1975; Weinstein, 1994).

The statistics on the current consumer levels reveals preferences and buying patterns together with market territories. These details enable the company marketers to easily reach the desired consumer with right products (Kondrat, 2010).

The issue of differentiating consumers based on chosen variables enables marketers to identify the purchasing power of consumers hence making it possible for marketers to identify consumers by their needs. Selection of the best customers enables effective communication and reinforces the relationship between marketers and the consumers, but mostly based on the quality of services rendered (Kondrat, 2010; Beane and Ennis, 1987).

Conclusion

Consumer behavior within the market has great impact on organization’s performance since it dictates on the level of its corporate reputation. The brand image could be improved only through promotional tools which focus on consumer satisfaction. Profits ploughed back into the business by a product or services depend solely on the level of sales through promotional activities.

Sound financial position of any organization and its profitability is determined by its ability to respond positively to the community and the environment. It is also determined by the ability of the company to attract potential consumers. However, there is a possibility that those within the management team could act in a manner which reduces the fame on company’s reputation and brand image.

The management qualities as well as the quality of goods and services remain an important factor which determines the length of time an organization could operate within the market.

All the drivers of financial excellence in an organization are basically linked to the extent through which the company utilizes its tools on public relations; this applies on both social and environmental sectors. Marketers should be watchful on seasonal consumer behaviors to avoid unnecessary losses.

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