Customer Behaviour in the Case of Starbucks Coffee China

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4. ANALYSIS OF CONSUMER BEHAVIOUR

Furthermore, the customers who went there usually buy hot coffee (macchiato, cappuccino, Americano), tea, and cake, in this time most of their beverage is hot since these days are cold, there are 2 payment method they usually did which is cash and card, for the card I did not sure whether it is credit or debit card, customers could also use their loyalty card to get the promo or even free drinks after few times of transactions. The amount they bought normally is the same as the number of their group and some could even buy more after finish it, for the cake they could bought more than 1 pieces for 1 person. Some of the customers are regularly come to the Starbucks and some are coming just to grab a coffee and rest after strolling around Metro City and Xujiahui. They all consume the product they bought, mostly they are coming as a group, and rarely can be seen alone person came to the Starbucks, apart from consuming the beverage they do other things like reading, make a conversation, playing games on gadget, do things with their laptop, using free Wi-Fi provided by Starbucks. Mostly people spend more than 1 hour in the store and some of them even staying until the store is almost closed.

5. APPLICATION OF A CONSUMER BEHAVIOUR THEORY

The consumers behavior theory applied in this observation case are, consumer perception theory which according to Chris Blank (N.D), the consumer perception is applied to the concept of sensory to the advertising or marketing of a product, it related to how consumer form a opinion about a brand or company through the goods or service they bought or used. Perception theory is related to the observation that have been made because Starbucks perceived by its customers as high quality beverage and service, Starbucks learned that people came to the store not only to drink the beverage but also to undertake the experience of the high quality product, services, comfortable place, aroma, atmosphere from Starbucks. From those services the customers could perceive that spend some money and time in Starbucks is worth spending because they have the best product and services, with this kind of experience the customers will learn this is the way they treated each time and will inscribe the memory for the perception of Starbucks.

Another theory that suitable for this observation is the social classes, according to Fanny Perreau (N,D), social class defined as a groups more or less homogenous and ranked against each other to form a social hierarchy, social class often divided by three group which is lower class, middle class, upper class. People from different class tend to have different desires and consumption powers. Consumer class is related to the customer that came to the Metro city’s Starbucks, most of the customers are from middle class to upper class they also view Starbucks as a high valued product that could make they feel very international. Some of the customers come to Starbucks not because the coffee but to show their status and their class. As Lee Rannals (2014) stated, Consuming Starbucks is more than just for a cup of coffee for urban Chinese middle class, however it is also an instrument to demonstrate their status – both their social class and more subjective characteristic, such as being modern, international.

Furthermore the motivational theory also related to the consumer behavior of the Starbucks Metro city, Motivation refers to the processes that lead people to behave as they do. It occurs when a needs is aroused that consumers wishes to satisfy. The need creates a state of tension that drives consumers to attempt to reduce or eliminate it. This need may be Utilitarian (achieve some functional or practical benefits) or Hedonic (experiential needs) the desired end state is the consumer’s goal. Other motivational approaches focus on specific needs and their ramifications for behavior. There are some important need that relevant to this observation which is, need for power, most of Chinese consumers view Starbucks as a high valued product and services as stated above, it can be said if the Starbucks product and services could make the customer feel more classy and prove their identity. Most of the customers that came to the Starbucks usually show off their phone, branded bag, wallet, and some other things that in other words they want to show to their surrounding about their identity. Another thing is the needs for the uniqueness, Starbucks has unique things that they are represent as the third place after home and work place, customers could make a break with in the Starbucks after work, shopping, and etc while enjoying the unique atmosphere in Starbucks. Lastly the method is the culture; culture is a society’s personality. It includes both abstract ideas, such as values, ethics, and services. China has a thousand year history of drinking tea and culture associated with it, no one could expect they will drink coffee instead of tea, however most of the customers coming to Metro City Starbucks are drinking coffee instead of tea, this showed how well Starbucks could adjust their culture into Chinese cultures that could affecting the purchasing behavior of the customer that coming to the Metro City Starbucks.

6. CONCLUSION

In conclusion most of the Chinese consumers that coming to Metro City Starbucks are from middle-upper classes, with income approximately more than 8k RMB per month, most of them having good education. They also have high perception toward Starbucks product and services, they also having a thought that coming to Starbucks could show the others about their identity and class, they also be motivated with the needs of uniqueness Starbucks experience which is rarely can be feel in other coffee shop. In my opinion as a Starbucks customers I personally having a motivation to keep coming to Starbucks especially Metro City branch is because the unique atmosphere that can be feel in it and the perception that each time I went there it will worth spending because I can having a good beverage, and services. In the future, many companies needs to put more effort and times in consumers behavior observation in order to finding the customers like and dislike, their perception towards brands, to deciding the target market before they market the product or services in order to get the best result with full satisfaction from consumers.

7. Reference list:

Blank, C. (n.d). Consumer Perception Theory. Available: http://smallbusiness.chron.com/consumer-perception-theory-40176.html. Last accessed 28th Dec 2014.

Lubin, G. (2011). 8 Amazing Effects That Background Music Has On Sales. Available: www.businessinsider.com/effects-of-music-on-sales-2011-7?op=1.