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Consumer Behavior of Coffee Drinkers

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Lyndsay Cooper

on 9 April 2014

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Transcript of Consumer Behavior of Coffee Drinkers

Consumer Behavior of Coffee Drinkers
Many People have a daily ritual of starting the day off with a cup of coffee/or ending the night with a cup of coffee

Meeting around the coffee pot with co-workers in the morning

Coffee is a majority of the time offered with dessert or after meals

Your caffeine ritual can say a lot about your finances and your attitude toward money.

Branded Coffee Shops vs. Local Coffee Shops
Consumer Motivations to branded Coffee Shops
• past experience/familiarity
• convenience of location
• Friends and family
• (research shows social influence is a strong motivator in consumer choice and purchasing behaviors to branded coffee shops)

Consumer Motivations to local coffee shops
• Friendly Staff
• High quality of coffee and food
• Good atmosphere

*High quality coffee and food and friendly staff were most important for both branded coffee shops and local coffee shops.

Brand Influence
Influenced by friends and family members

Brand Image
cheap, okay coffee
coffee snobs, expensive
Local coffee shops
cozy, hipsters

Lyndsay, Abby & Emily
Coffee as a Social Function
• Many have dubbed coffee as the greatest addiction ever

• Social factors contribute to the fact that coffee is one of the most widely consumed beverages in the world today.

• 78% of Serbians and two thirds of French and Americans cant face the day without their morning cup of coffee.

• 63% of the English, 70% of Australians and 90% of Moroccans are glugging coffee all day; with the Asian markets being the least caffeine-loving nations

big question is, why has a majority of the world formed such a ritual with coffee?…simple - the caffeine
In Relation to Maslow's Hierarchy of Needs
A theory of human motivation, provides a strong concept for consumer decisions choice of branded coffee shops

Two constructs of this theory “Love and Belonging” support the desire to create a sense of connection

The desire to achieve social security motivates individuals to choose the same brand as others, by external public observation or internal, social group attitudes.

The desire to achieve social security motivates individuals to choose the same brand as others, by external public observation or internal, social group attitudes.

The drive to satisfy thirst alone is another determinant for visiting a coffee shop

McDonald’s – loyal customers
Loyalty programs
star program

Single-cup brewers
Global/ethical issues:
Farmers living in poverty
Fair trade
Drought in Brazil
Environmental Impact
Shade-grown coffee
Certified organic coffee

Coffee and Farmer Equity
“We are committed to buying and serving high-quality coffee that is responsibly grown and ethically traded. We honor this commitment through our responsible coffee purchasing practices, farmer support centers, loan programs and forest conservation efforts. When we buy coffee this way, we believe that it helps foster a better future for farmers and helps mitigate the impacts of climate change for the planet.”

Starbucks C.A.F.E. Practices
Decision-Making Perspective
Rational user; primarily concerned with maximizing utility

1. Problem recognition: not caffeinated
2. Information search (evoked set): Starbucks, Dunkin Donuts, Espresso News, Local Lion, Crossroads
3. Evaluate alternatives: Starbucks is expensive, Espresso News is best tasting, Local Lion is farthest away
4. Purchase
5. Post-purchase: consumption, disposal

Behavioral Influence Perspective
most convenient; passive
based on situational factors: sales, displays, incentives
"lazy shopper," impulse buyer
Ex. someone shopping at Harris Teeter for groceries with no intention to buy coffee could see the Starbucks and make an impulse purchase

Experiential Perspective
irrational, compulsive shopping
most likely to go to a coffee shop with the best atmosphere
hoarding, collecting, gift-giving; Starbucks does this with their multitude of products
West – spend 27% more than average on roasted coffee
South – 14% less
-Younger demographics more likely to buy single-cup brewers

Do you drink your coffee black?
“Predictably, black coffee drinkers in the survey shared the following personality traits and attitudes: they’re straightforward, no-nonsense individuals who are ‘old school’ purists and can be moody and quiet, abrupt and dismissive.  They’re also described as set in their ways and resistant to change.”

Are you into lattes? Are you heavy on cream and sugar?
“Tend to be comfort seekers and people pleasers who are helpful and generous with their time. They also have a habit of overextending themselves and don’t take good care of themselves”

Is your coffee order full of demands?
“Obsessive, perfectionist, selfish, health conscious, overly sensitive and rigid”
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