All groups that have a direct or indirect influence on our attitudes and behaviour are the reference groups. For instance, primary groups such as family, friends, neighbours, classmates; secondary groups such as religious and professional; aspirational groups such as those we would like to join. (Kotler & Keller, 2009) These groups exposed me to new behaviour and lifestyles. For instance, I had never thought that doing assignments at Starbucks Coffee but my friends recommended that there have a quiet ambience to focus on study, so I heed their recommendations.
Apart from that, online social networks also affect consumers buying behaviour. People socialize and exchange information as well as opinions through these online social networks. It included blogs and social networking sites such as Facebook. I have been influenced most through this online social networks to visit Starbucks Coffee. Many of my classmates and friends were posted their status in Facebook that they were doing assignments at Starbucks. These have encouraged me to visit Starbuck Coffee. After many times, my lifestyles changed to be like them.
2.1.3 Personal Factors
A consumer’s decisions are also influenced by personal characteristics. These included the age and stage in individual life cycle, occupation and economic circumstances, personality and self-concept, lifestyle and values. (Kotler & Keller, 2009)
2.2 Decision Making Process
Marketing Scholars have developed a “stage model” of the buying-decision process. (Appendix A) Consumers pass through the five stages which are problem recognition, information search, evaluation of alternative, purchase decision and finally come to post purchase behaviour. However, consumers may not pass through all five stages in purchasing a product or service.
2.2.1 Problem Recognition
In the first stage of decision making, consumers recognize a problem. The needs would be triggered by internal or external stimuli. First I found out the problem that a place for discussion is needed, with an internal stimulus, my needs becomes a drive. Other than that, I admire my friends who can do their assignment and discussion at Starbucks Coffee, which affected my thoughts about the possibility of making the purchase decision.
2.2.2 Information Search
Most of the consumers seldom went through this stage. It would be done if the products or services are expensive. For my case, I did do some information search before visit Starbucks Coffee. I got the information through information sources such as personal – friends; public – forum on networks; as well as experiential – advance visit with friends to experience the place.
2.2.3 Evaluation of Alternatives
When come to this stage, consumers may search for another similar products or services. They may compare the products or services with the particular products or services’ competitors. I did get some information of Starbucks Coffee, but trying to satisfy my needs and looking for others benefits, an alternative choice may appear. The alternative choice for me is the Starbucks Coffee great competitor – Coffee Bean.
2.2.4 Purchase Decision
This is the stage that the consumer decided to buy the most preferred brand. (Kotler & Armstrong, 2010) However, the purchase decision may be affected by two factors. There are attitudes of others and unexpected situational factors.
Attitudes of others such as friends and family members may affect my decision. For instance, my friends’ positive attitude towards Starbucks Coffee increased my intention to visit there. On the other hand, if my friends have negative attitude towards my choice such as bad comments, it will decrease my intention to visit Starbucks Coffee.
Consumer’s purchase decision is deeply influenced by perceived risk such as functional risk, physical risk, financial risk, social risk, psychological risk and time risk. (Kotler & Keller, 2009)
2.2.5 Postpurchase Behaviour
In this stage, it is depends on the level of customer’s satisfaction. Satisfaction means the closeness between customer’s expectation and the service’s perceived performance. Once the service meets customer’s expectation, the customer is satisfied. I have a high satisfaction towards Starbucks Coffee. The ways that the staffs serve me and the ambience of the store met my expectation. In addition, the wireless internet service speed was much speedy than I expect. As long as my needs and wants are satisfied, Starbucks Coffee is my choice for visit in the future. Now, I am the loyal customer of Starbucks Coffee.
3.0 Nature and Characteristics of Chosen Service Company
Starbucks Coffee is one of the service mix business which has the both characteristics of product and service business. It is coffee house which included products (coffee, tea, cakes, meal, etc.) as well as services (waiter, provide wireless internet, etc.). It falls into categories of offerings which is Hybrid. This type of offering consists of equal parts goods and services. (Kotler & Keller, 2009)
3.1 Intangibility
The services of Starbucks Coffee such as the ambience of the place and wireless internet access cannot be seen, tasted, felt, heard or smelled before customers bought them. This is the nature of service – intangibility. (Kotler & Keller, 2009)
3.2 Inseparability
Buying a cup of coffee cannot be separated from the coffee markers which is the staff because the staff produced the coffee to customers. Services unlike goods, they are typically produced and consumed continuously. When the services are produced, customers must be present. Provider-customer interaction is a special characteristic of services marketing. (Kotler & Keller, 2009)
3.3 Variability
According to Kotler and Keller (2009), services are also highly variable because the quality of services depends on who provides them, when and to whom. Starbucks Coffee had done a good job in increase their quality control to reduce customer perceptions of risk. They did well on the effort of training their staff. The staff’s professional and friendly attitude had given high satisfaction towards personal customer experience.
3.4 Perishability
Starbucks Coffee must have much more staff and seat because of weekends or public holidays demand will be increased. The service perishability could be a problem when demand increased because services cannot be stored. To solve these problems, they hired part-time staff so that they would not under-staffed.
4P’s Framework
In order to improve Starbucks Coffee Company image and establish it as the leading market among the competitors, they implemented a well-integrated marketing program which included a marketing mix of 4P’s. The 4P’s marketing mix included Product, Price, Place as well as Promotion.
4.1 Product
Starbucks Coffee has a very variety of whole bean coffees and eco-friendly cappuccino and the most popular Frappuccino. Other than that, they also expanded beyond pastries and coffee to oatmeal and smoothies to keep up with their competitors. Besides, variety of tea also introduced to attract tea drinkers. Coffee and cappuccino makers also offered by Starbucks Coffee for customers to purchase.
4.2 Price
Starbucks Coffee products are priced higher because of their upscale image attached to its brand. In addition, this company also implementing “value strategies” that would focus more on inexpensive coffee products than being expensive products to customers who are skittish.
4.3 Place
Starbucks Coffee outlets can be found in any neighborhood in others country. In Malaysia, we can found Starbucks Coffee stores in shopping mall. The locations are extremely convenient for consumers that are on the go and for those who enjoy reading or listening to music. Other than that, Starbucks Coffee also collaborates with Borders Book Company which there would be a Starbucks Coffee store inside the book shop. It was very suitable for customers who are preferred enjoy coffee while reading books.
4.4 Promotion
Numerous promotions for reach its target markets had implemented by Starbucks Coffee such as collect points with Starbucks Card. This particular promotion is currently available in only some country. Luckily, it had been introduced among Malaysia outlets started on November 2011. As a loyal customer of Starbucks Coffee, I am excited of hearing this news. From now on, I am currently purchasing the Starbucks Coffee products and services with the member’s card that had been signed up. By now, I could turn my purchases into rewards.
Other than that, Starbucks Coffee also using philanthrophy as a means for promotion which contributes to several non-profit organizations as a way to improve brand image and awareness in local communities.
Furthermore, Starbucks Coffee also introduced “Save the Environment” activities which customers are encouraged to bring own tumbler when dine into the store. An amount of RM2 will be deducted from the price.
Extended 3P Framework
People
Majority of the services, people are an important element of the marketing mix. A company is left with small number of assets if the employees are taken away. As a café, Starbucks Coffee needs a large number of staff to serve the customers. As stated earlier in the nature of services – perishability, part-time staff also needed to take turn in working shift. Other than that, the staff attitude also is the main factor for customer to be loyal towards the company itself. I could be called the loyal customer of Starbucks Coffee. That was because the staffs really did well in their serving. Satisfaction towards their friendly attitude is very high in me.
Process
As a consumer of Starbucks Coffee, I am really affected by the manner in which staff serves me and the time consumed for waiting the staff process the production process. From the first time visit Starbucks Coffee, I have never met time consuming situation while waiting the staff produces my order.
Based on one of the nature of service – intangible, the customers who are potential are unable to enjoy a service before it is purchased. In this situation, it will increase the risk of the customers’ purchase decision. To reduce the risk, the particular service company must provide tangible physical evidence. For Starbucks Coffee, it distributes some brochures to describe and give pictures of important information of the services. Apart from that, the staffs at Starbucks Coffee also provide evidence about the nature of service. Tidily dressed staffs give the appearance of friendly to customers.
Conclusion
As a conclusion, I felt that Starbuck Coffee have made their customers satisfied with their services as well as products. This company did very well on its staff training. The staffs are all well-trained and friendly. They also have the professions about knowledge In coffee.
by
joannewyy (student)
