Consumer Behavioral Study On Buying Coffee Marketing Essay

Investigate and find out why do people willing to pay more for Coffee Bean coffee than a normal coffee shop. Discuss the importance of finding out of consumer behavior.

One of international food company, Coffee Bean, offers more expensive coffee, if compared with other coffee shop, the price of Starbucks coffee is more than triple but there are many people who like to go and drink a cup of coffee at Coffee Bean. There are several factors found that why people keep going to Coffee Bean.

Body

Product, its Quality

One of factors that people like to spend more for Coffee Bean is due to its qualified products. One of Coffee Bean products is as we know as coffee which is considered as the main product of Coffee Bean. Coffee Bean has put a lot of effort to search the finest coffee bean in the world. Even people are in sleep, there is someone from Coffee Bean who is trying a cup of coffee.

Furthermore, Coffee Bean has a variety of coffee flavours. Coffee Bean tries to satisfy its customers with their different types of favourite coffee with its well-trained baristas. Usually, each coffee drinker has its own favourite which is the most tasteful and aroma to suit customers. Coffee Bean suits them with 22 varieties of coffee and 20 kinds of tea. Coffee and tea can be categorized mainly Bottled drinks, Brewed coffee, Chocolate and Espresso beverage, yogurt. Not only that, Coffee Bean serves like bakery, hot breakfast, salad and fruit & snack plates etc. In the comparison between Coffee Bean and a normal coffee shop, at the normal coffee shop does not entertain customers with a variety of flavours even it is hard to find good roasted coffee. Coffee Bean is famous because of its products to increase satisfaction of each customer’s taste that makes people willing to pay more for the drinks or delicious food in Coffee Bean.

Place

Another factor of the popularity is the location which Coffee Bean chooses. Coffee Bean can be found internationally. It can increase a consumption and identity of Coffee Bean from customers. Coffee Bean has a very strong team to select the place in which there can be high demand for an area that people can drink coffee and make their discussion with friends, colleagues, workers and many more. Starbucks eases the access to people to find and walk into its stores worldwide.

Figure .1.2.1 Coffee Bean in Kinta CityOn the other hand, Coffee Bean usually opens stores in busy town and tourist spots such as shopping malls and hotels which are luxury and ambiance places all over the world, and the taste of coffee in Coffee Bean is different from the coffee that are available in the normal shop. These factors increase effectiveness of distribution channel of Coffee Bean. Coffee Bean, its best chosen locations that comfort people to find finest coffee taste around the world. They can release their stress by drinking a cup of coffee in coffee bean because of the quiet condition. The place of coffee bean is relaxing and comfortable and this makes everyone to choose coffee bean when they want to discuss or have an informal meeting. When we are at a normal coffee shop, we can’t concentrate on our job or for students; they can’t even concentrate when they are doing their assignment because of the noisy environment. So this is why consumers’ prefer and are willing to pay for a higher price for Coffee Bean. Coffee_Bean.jpg

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Figure 1.1.2.2 Smoking area and non smoking of coffee Bean

In addition, in Coffee Bean, there are two areas which are non-smoking area and smoking area. So non- smokers can enjoy their time with their favourite coffee drink without any cigarette smell or smoke.

Staff

Staff in Coffee Bean is well train and they are polite. They are train manners by the supervisor of Coffee bean so they are very friendly, kind and always smile. Also they are required to know how to speak English because Coffee Bean has foreign customers so they need to know the international language.

Figure 1.1.3.1 Staff in coffee Bean [1] Staff s is required to wear uniform and this will give consumer a very good impression. In normal coffee shop, the waiters or the staffs sometimes wear their own clothes during working times and that will look untidy and uncomfortable for consumers. Figure 1.1.3.1 show the staff wear black cap and brown or black uniform. For example in normal coffee shop, when consumers order drinks, they difficult to order because they do not know who waiters or waitresses are. uniform.jpg

Brand Recognition

Another factor is strong brand recognition of Coffee Bean. Coffee Bean is well known by its people and its market especially its competitors. Coffee Bean is very strongly recognized company in the world as a coffee retailer. In this generation, most of people may hear the name of Coffee Bean and half of people may taste its finest coffee too. Once people hear Coffee Bean they can think of its finest coffee, luxury designed environment and its staff attitude toward customers. Those facts can improve the recognition of the company and they will keep falling customers into deeply tasteful coffee of Coffee Bean.

Lifestyle

Consumers are willing pay more for Coffee Bean coffee than a normal coffee is the lifestyle. In the modernization, people are open-minded for everything. People like to enjoy their lives without limit. Especially, middle of 20 to 30 aged people like to go nicer and cooler place to enjoy their moment. They like to use and wear expensive things then why not they like to drink expensive drinks that they can get highest satisfaction.

Promotion

People like to spend for Coffee Bean coffee is the promotion. Coffee Bean has seasonal promotions to attract more customers to walk in. For example, Coffee Bean makes events for any special days which people celebrate internationally such as Christmas, valentine, calendar new year and Chinese new year etc. During these special days, Coffee Bean sells event products which reflect features of each day. 161977_189809951041140_2369883_n.jpgThe-Coffee-Bean-Tea-Leaf-Christmas-Cake-Promotion.jpg

Figure 1.1.6.1 Promotion of Christmas and Valentine’s Day

Psychology

Coffee Bean is luxury and comfortable concept place. Inside Coffee Bean is quiet and comfortable and there is music playing. It encourages people to talk with their friends and family in quiet with nice melody that relax people from stress. Nowadays, it is a war outside without a gun and bullets. It means there is a lack of place that people can find comfort. Coffee Bean provides that place to people who really need the peace that influence people emotionally. It also can be happened that some people drink coffee at Coffee Bean because of it is not for everyone can effort. On the other hand, there are some people that want to drink expensive coffee because they want to be seen cool.

Importance of Consumer behaviour

Consumer behavior can be defined as the metal and emotional processes and the physical activities that people engage in when select, purchase, use, and dispose of products or services to satisfy particular needs and desires.

As customers, they benefit from insights unto their own consumption-related decision such as what they buy, why they buy, how they buy and the promotional influences that persuade them to buy. The study of consumer behavior enables them to become better, that is, wiser, consumers.

As marketers, it is important for them to recognize why and how individuals make customer’s consumption decisions, so that marketers can make better strategic marketing decisions. So marketers must understand consumer behavior to develop successful strategies and identify target market segments. Moreover, awareness of emerging trends in the consumer marketplace is essential for quick recognition of and response to problems and opportunities with sound marketing strategies.

Conclusion

In conclusion, Coffee Bean is very famous to people who like to drink a cup of coffee. Even though the price of Coffee Bean coffee is more expensive than a normal coffee shop people are willing to pay more for Coffee Bean coffee. There are several factors that may influence people purchasing decision for Coffee Bean. Firstly, one of factors is the product. Coffee Bean provides a variety of coffee and tea and snacks or food. There are more choices that allowed customers to choose highest satisfaction of the product.

Secondly, the place of Starbucks is another factor that influences consumer decision. Coffee Bean has opened more than 16,000 stores in more than 50 countries that make people to experience much easier. The next is staff; staffs of Coffee Bean are very kind and friendly so customer can relax and feel comfortable. There are some more factors considered such as brand recognition, lifestyle, promotion, and psychology that can influence consumers’ purchasing decision.

Consumer behavior is very important to any organization to be aware and keep focusing on. Once the organization become outdated about consumer patterns that means the organization is out of the market or will be sooner. The organization should carry studies about consumer behaviours and factors that influence consumers’ final decision.

Question 4

Friends and society opinions on the products and services are always one of the factors influencing individual buying behavior, comment on how facebook enhance the impacts from friends and society towards buying behavior.

2.1 What is Facebook?

Facebook is the largest social network in the world. Its first name is Facemash which was named to start the service when Mark Zuckerberg was Grade 2 Harvard University in on 28 October 2003. Then on 4 February 2004 under the name of “The Facebook” begin to services thefacebook.com. In June 2004 the company moved to California Palo Alto. After that PayPal co-founder Peter Thiel was the first investment and in 2005 purchased domain name facebook.com for $ 200,000 and then took off in the name The name of right now, “facebook” as continue to use.

Initially, facebook is available only to Harvard University students. But In Stanford, Columbia, Yale has been expanded to the area, Ivy League Universities, New York University, Massachusetts Institute of Technology, USA and Canada, most universities have been expanding into areas. In September 2005, high school student also has expanded and the end of 2005 more than 2,000 college and high school have a network of more than 25,000 was produced. Thereafter until the member area for some companies also can make and finally in September 2006 more than 13 years old, anyone with an e-mail address was able to join. In addition, in 2006, from Yahoo offer undertaking $ 1,000,000,000 but reject the offer received and it is received investment $ 250,000,000 from venture capital investment.

2.2 How Facebook enhance impact the Buying Behavior

Buying behavior is the decision processes and acts of people involved in buying and using products so need to understand what factors influence when consumer purchase and analyze buying behavior.

There are many factors which actually influence or affect consumer buying behavior, such as comments or ideas or even suggestions from friends, advertisements and etc. Nowadays, one of the biggest influence is by Facebook, one of the social network which came to be part of everyone’s routine since everyone logs into Facebook at least once a day. This is the main reason why Facebook influences a lot on someone’s buying behavior. Moreover, Facebook isn’t just a social network, it has got advertisements with promotions or some companies create a page for themselves and promote their pages on Facebook.

2.2.1 Status

Figure .2.1.1 Example of status and commentsIn Facebook, friends can give comments about the specific product that someone wants to buy. For example, if user wants to buy laptop so put update her status as “Sony vs Toshiba… which one is better?” Friends will start putting comments to her status, probably their opinions and pros and cons of products of Sony and Toshiba or even suggesting another similar product such as Samsung or Fujitsu. In other words, user will get to share own ideas with friends on Facebook, which will actually make the user skim through on the advantage and disadvantages of the product user is willing or planning to buy. And also, some of users’ friends who might have used the product or have the product could upload the photos of it which means user can have an idea of its specifications and its closer view before purchasing. As mentioned earlier, there are advertisements shown in the page of Facebook which means, user might be aware of any promotions or discounts of the specific product on Facebook which would be better for the user.untitled.bmp

2.2.2 Group

Some people using Facebook, when people are interested in something for example K-POP fans, people will make a page for themselves and other people want to be one of the members in the group, all people need to do is to click on the “like” button. And group members will be updating each other on the specific coming event or post and even link videos about it. So, for example if a person wanted to buy a Samsung camera, and there is a group in Facebook under Samsung camera, so, that person can actually join the group and get to know more about it or even compare with other models or other products.

Figure .2.2.1 group of Samsung Camera samsung.bmp

This picture is one of group of Samsung Camera page. It shows that now what is new product and give some information.

A group of Facebook will share the value system based on the experience from who already used product. This is a greater opinion to impact the buying behavior, as same group member, other membership will trusty to the member and stop or buying the product. Furthermore, almost every group or society also has a closer communication; the opinion of the society will direct enhance impact the buying behavior.

EX1.bmp

Figure 2.2.2.2

This Figure 2.2.2.2 shows that many group members comment their opinion about Samsung camera EX1 whether it is good or not

2.2.3 Video

Figure 2.2.3.1

Another factor that Facebook nowadays influences a lot on consumer buying behavior is because of the videos shared in Facebook. For videos, people can actually link any types of video from YouTube or wherever to their Facebook profile, which means people can share the videos as people wish because people might feel the product of the video is interesting, so people hope can share out for other people in Facebook.

Some of the companies make their companies account and add their advertising video. It will help to customer understand easily what they doing business and what product they selling.

In addition, some customer also add the video when they use the products so it can know how to use the product and more consider whether it will be suitable for themselves. For example Figure 2.2.3.1 shows an advertisement of Ipad 2 on the Facebook.

2.2.4 Advertisement

Figure .2.4.1 Advertisement in FacebookAdvertisement is known as a paid for communication. It is used to develop attitudes, create awareness, and transmit information in order to gain a response from the targeted market.ad.bmp

Figure 2.2.4.1 is one of the advertisements advertised in Facebook and usually displays 4 or 5 advertisements. When log in the Facebook, users can see many companies or shops had set their advertisements on the right hand side of the page. This is because a lot of people use Facebook around the world, so, advertisements in Facebook are more trustworthy. Advertisements can attract users and able to attract users are interested in the advertisements, and users will eventually click and read it. After that if users feel that it is good or suitable and meet their needs or wants, they might decide to buy it.

In addition, some advertisements can be seen many times when users are logged in Facebook. It is also able to attract users in a way that, if the users of Facebook see advertisement many times, they want to know what the advertisement is about. As a result, some of the users will be interested in it and subsequently, will be considering of purchase.

Finally, Facebook is one of the largest social networks in the world which has enhanced impact to the users buying behavior such as status, group, video and advertisements. .Nowadays, Facebook is not only for making friends or communicating with friends. When users want to buy something, Facebook can help them to buy better product or service. If a user writes status what he or she wants to buy, his or her friends can comment about the product whether it is good or not. Also he or she can find the groups or videos and get more information about the product. Lastly, advertisements also help the process of purchasing in a sense that the users may be able to click on the advertisements on the right side of the page if they are interested.