Consumer_Behaviour

Service : Coffee shops Coffee shops are essentially a low involvement service as most of our consumers felt that it was affordable for them to frequent coffee shops on a regular basis, and there were a few close substitutes to visiting coffee shops like pubs and staying at home. Majority of the respondents also saw significant difference in various coffee shop outlets, like Costa Coffee, Barista, Cafe Coffee Day and Mocha. Some differentiated these outlets on the basis of occasion that they would visit a particular outlet, like Mocha would be used to visit a friend after a long time, while to hang out with their regular college group they would prefer a Cafe Coffee Day, all this was irrespective of their preferences. But the most common response were typically that these outlets varied on the ambience, menu, and service. Thus, being a low involvement service with significant difference in various brands, typical consumer behaviour while visiting coffee shops could be summarised as Variety Seeking Behaviour. These consumers mentioned that they would switch between outlets if they went there a week before, or just on impulse without any reluctance. Another feature of coffee shops that reinforces the aspect that buying behaviour for this service is typically variety seeking is the fact that most coffee shops tend to maximise on the no. Of outlets they have in the vicinity, some to the extent, that outlets of the same brand can be found across the street. (Eg. In Connaught Place, New Delhi, there are 7 Cafe Coffee Days, out of which some are even within 30 mtrs of each other!) But there were some consumers that felt that the coffee shops that they visited did tell a lot about their personality, it was also observed that these people had a specific outlet in mind which they frequented often on a daily basis. Thus, their behaviour would tend more towards Complex Buying Behaviour. This involvement may arise from personal factors related to whether the product’s image and the needs it serves are congruent with a consumer’s self-image, values and needs. A typical insight for the consumer who frequents the coffee shop on his way to work and carry it to work where it becomes socially visible. But this is visible only when a person is switching between his regular coffee shop outlets, and such high involvement is present. Beyond that once a person gets accustomed to his chosen brand he ends up sticking to it more out of habitual buying behavior where his buying decision is an outcome of his need, and he doesn’t go through the other stages like evaluation of alternatives, or information search each time he makes the purchase. Factors influencing Buying Behaviour The aim of this research was to understand what happens in the buyer’s consciousness after the outside stimuli have affected him and before the buyer makes his decision. In the process of deciding whether to visit a coffee shop or not the following factors as specified by the Stimulus-Response Model affect the consumer. Cultural Factors Culture As the all the consumers we interviewed were of the Indian Sub-Continental Culture, there was nothing that we conclude about any specific values, preferences or behaviour that impact the consumers decision. Sub-Culture For this research we took into the respondent’s geographical place of origin into account, or the place he has stayed in his formative years and has impacted his preferences, interests, choices, etc. The most significant relationship emerged that the value and belief system that emerged out of a person’s subculture has a significant impact on his reason for visiting the outlet. People from more conservative settings opted for a coffee shop so that they could spend time without spending much. While people from a more*** Social Class In social classes also a very significant trend emerged on what they did during their visit at a coffee shop. Respondents from upper-middle classes said that they usually visited to coffee houses to catch up with friends, and inspite of not being hungry or thirsty they ended up buying a beverage or food item for themselves, also irrespective of others ordering. While people from middle class segments who were also going there for socialising purpose did prefer to not order at all. Social Factors This section aimed to understand how social factors like family, reference groups and even roles and statuses impact consumers. Reference Groups For deciding on a coffee shop, the role of reference groups was very important in terms of both category choice and brand choice. When coffee shops were in the initial stages of their product life cycle in India, most people believed that coffee shops were only to be frequented by foreigners and business people. Hence, it was a big deal to visit a coffee shop for many, and also a luxury they used to indulge on very few occasions. Over the years, this has undergone a considerable change as most typical coffee shop goers are young, urban people, and people’s primary group of reference like friends and colleagues play an important role in decision making on whether they should visit a coffee shop, and which outlet. A good crowd is also preferred by most respondents, this could be an aspirational reference group that influences outlet choice only. Similarly, a particular respondent also cited that if the crowd is full of young teenagers he might avoid going to that outlet, which again is limited to brand choice Family Most respondents did not feel that their family helped or influence their decision on coffee shops in any aspect. Thus, we weren’t able to conclude anything significantly for this. Roles and Status In terms of roles, a typical observation was that they frequented coffee shops mostly during their college days, or training period. *** Personal factors As visiting coffee shop is a frequent activity for most of our respondents, we have analyzed their current personal factors that impact their decision from time to time. Lifestyle Personality and Self Concept Psychological factors Psychological factors such as the following also act as factors influencing the decision process. Motivation This helped us understand the manifest and latent motives of the consumer while visiting the coffee shop that has affected his coffee shop decision. Typically most of our consumers mentioned their manifest motive as meeting old friends, hanging out with peers, while they were waiting for someone, or when they are hungry, etc. But further probing on why they chose a coffee shop over other options like pubs, or fastfood joints, they mentioned attributes of a coffee shops like spacious, air conditioned, ambience that helps them unwind, and plus lesser noise, and easy to carry out conversations. Thus, comfort and socializing were their 2 prime motivators for visiting coffee shops. According to Herzberg’s Theory of Motivation, ambience, and comfort could be the motivators to visit coffee shops, while noise and being overcrowded were dissatisfiers against pubs and fast food joints. Learning In terms of cues, respondents sighted on a hot day, when a coffee shop is in the proximity and they are waiting for someone or after a tiresome shopping trip as possible stimuli that would motivate them to visit a coffee shop. As this is a repetitive decision, a good experience may act as positive reinforcement to visit the outlet again. But some respondents said that even though the experience may be good, they will not like to visit the same outlet again in the next few days. This is also in congruence with a typical attribute of Variety Seeking Behaviour i.e. people shift on an impulse or just out of boredom. This may also be seen that a visit to that outlet in the recent past may act as a negative reinforcement. Beliefs and Attitudes Typical beliefs and attitudes about coffee shops that came up in most interviews were that people who were fond of chocolates or coffee beverages, and believed “Coffee shops were the best place for desserts”, ended up going there after a meal or in the afternoons. Most people who believed that “Coffee shops were a place for snacks,” rarely ended up going there at meal times. Buyer Decision Process Need Recognition This is the initial phase of the buyer decision process and in this case it is his decision to go to a coffee shop. The internal stimulus that triggered the need to a coffee shop were varied among respondents like the need to socialize, or comfort or even thirst or hunger in some cases. But in some cases respondents also said that they could’ve chosen a close substitute too but external triggers like presence of a coffee shop in the vicinity or a new coffee shop that they had heard a lot about, or if the friends had suggested the coffee shop in the first place. In some cases even the hot weather was a trigger to visit a coffee place as the place was airconditioned and the atmosphere was relaxed and did not pressurize to compulsorily order something. People felt that no barriers to entry or exit at a coffee shop also made it a very congenial place to go to at a short notice or on a rainy day. Information Search Generally an interested consumer may or may not undergo information search before making his choice. In the case of coffee shops, where the person decides to undertake information search depends largely on the external environment. If the situation stimulus is very strong, like the weather is very hot and he/she is waiting for a friend, or he/she is tired after shopping and a coffee shop is in the vicinity, he might make his decision without much thought. This is called behavioural approach to decision making where the external environment plays a stronger role than the cognitive process. But in case the consumer is at home and making a plan on the phone to meet up with friends he might opt for information search in terms of asking friends for reviews of various outlets, here as there is lack of a situational stimulus, in the open setting of his home the consumer ends up thinking and cognitively deciding. In case of his options he’s aware of being available to him, he’ll ends up rejecting those outlets where his previous experience has been disappointing or dissociative groups(like younger siblings) visiting the outlet. The ones he considers in his choice set will generally be the one his friends might have recommended or he’s had a satisfying past experience(information gathered through personal, and experiential sources). Evaluation of alternatives Consumers use information to evaluate brands in their choice set. Most respondents said they took the following attributes in mind,(using aided and unaided recall) while deciding on the coffee shop outlet, but none of their opinions or views were rigid, and they actually remembered compromising on them in various situations. • Ambience (Lighting, smell,seating) • Time I can spend without being disturbed • Coffee and other beverages • Music • Noise level • Waiting in queue before sitting • Waiting for service • Crowd • Food • Location • Price While selecting the outlet to visit many respondents said that the crowd was almost like a tie breaker in selecting an outlet out of 2 close options. A respondent, who had initially stated that she visited coffee shops to read books, confessed she might choose one outlet over another for a better crowd. Thus, the brand image developed due to selective attention along with brand belief plays an important role in the final decision. Purchase Decision A purchase intent translates into a purchase decision but for intervening factors. Many respondents recounted experiences where they had cancelled plans or dropped the idea of going to a coffee shop as they were out of money, if his/her friends had vetoed the plan. As, typically the main motivator was socializing and his motivation to go to a coffee shop wasn’t strong enough to overcome the contradictory opinion of his friends. In case of a new outlet, the decision of whether the respondent will or not go there depended on the opinion of others. Some felt the need to consult friends or people who had been there before to confirm the veracity of their decision, while a few also said that they were inquisitive about new places and would indulge in the same if they felt like irrespective of other’s opinions. This was a reflection on the self confidence of the customer that eventually played an important role in deciding the timing of the decision. Post Purchase Behaviour Coffee shops are essentially a service and hence the most important of the buyer decision process is the post purchase action, i.e. his/her experience at the coffee shop. An excellent experience at a coffee shop did ensure word of mouth publicity for many of our respondents but it did not ensure repeat buyers. Most respondents felt that even if their experience at a particular coffee shop was enjoyable, they might opt for a different outlet in the near future. This can be seen as a typical of variety seeking behavior where the consumer is not averse to switching between brands, due to boredom or even for the sake of variety. This can also be inferred from how the coffee culture in western countries has grown to become more habitual buying type, where consumers stick to a brand they had initially chosen and stick to it out of habit.