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Assessment and Evaluation of Factors Affecting the

Implementation of Sustainable Marketing and Experience


Marketing Strategies to Promote a Coffee House
INTRODUCTION

Consumers in conventional marketing theories are assumed to be logical decision-


makers primarily interested in the tangible advantages of products. In contrast, experiential
marketers see their target audience as thinking, feeling people who care about having good
times. The focus of many businesses has shifted from the more conventional "features and
advantages" marketing to the development of memorable, meaningful experiences for their
target audiences.
Customers nowadays are more discerning than ever before, always on the lookout for
the next best thing. The potential for experiential marketing is enormous, and this also applies
to the coffeeshop industry. Seventy-seven percent of marketers say that experiential
marketing is essential to a brand's advertising tactics.
Using the senses of taste, sight, and smell, eateries can create memorable encounters
that are perfect for experiential marketing. Coffeeshops can attract new customers and keep
the ones they already have by using a little imagination. This transformation toward
experiential marketing is the outcome of three converging trends in the economy at large.
Businesses throughout the globe are coming to terms with the fact that consumers' emotional
responses, rather than their logical reasoning, play a considerably larger role in shaping their
purchasing choices. Experience marketing strategies often centre on the customer. In order to
succeed as a business, coffeeshops must focus on providing memorable, unique experiences
to their patrons. It will be easier to complete the task if simply pay attention to their
suggestions and adjust your approach appropriately.
The success of a coffeeshop depends on the owners' ability to connect with their
customers on an emotional level, and this can only be achieved by learning how their
consumers use and enjoy their products. To create an immersive plan that customers would
like, this must first be determined.
These days, most coffeeshops gather customer opinions online, using online review
services like Yelp and social media and through feedback forms on their own websites.
Information about consumers' interactions with and impressions of a brand may be easily
gathered through such channels. If a coffeeshop wants to build its experiential marketing
campaigns on actual diner actions, they will find this information invaluable.
When coming to sustainable marketing, often called green marketing, is a kind of
marketing in which a corporation prioritises causes important to its target audience, such as
the environment and society at large. Waste, excessive mark-ups, and deceptive marketing
are common complaints levelled against businesses. More businesses are turning to
sustainable marketing to combat this sort of press. As the present pandemic spreads, the
sustainable coffeeshop industry is expected to expand, and new sustainable coffeeshop
concepts may emerge. Hygiene, branding, and delivery will be prioritised, and developments
in these areas will spur innovation. Further growth, will be spurred by the emergence of novel
revenue-sharing and fixed-cost-reduction models.
We may presume that in a few months or a year, India and the rest of the globe will
figure out how to work around this epidemic and consumers will search for other eating
alternatives, but in the meanwhile, there may be a movement toward more sustainable forms
as opposed to luxury or fine dining. Home delivery and informal dining are likely to get
greater attention in the near future as consumers become more price conscious. The
coffeeshop business has been tested by the epidemic, and its resilience has been on full
display. A lot of coffeeshops may learn from the epidemic and start focusing on sustainability
and improving their sanitation practises. Customers want coffeeshops to be open and honest
about the measures they take to maintain a clean and safe environment. Customers expect to
see items like disposable menus, cutlery, notices posted on cleaned tables, hand sanitizer
dispensers, and personnel in masks while dining out. Importantly, sustainability will be at the
forefront, and in the future, coffeeshops that choose to implement sustainable practises may
be rewarded. This makes the topic entitled the factors affecting the implementation of
sustainable and experience marketing techniques in a coffeeshop relevant in the current
context.
This master's thesis aims to provide a model by analysing the aspects that impact the
implementation of sustainable marketing and experience marketing approaches for a
coffeehouse promotion.
Object of the Research: Promotion Models
Subject of the Research: A promotion model that combines elements of sustainable
marketing and experience marketing in a coffee shop.
Objective of the Research: To explore the elements of sustainable marketing and
experience marketing that contribute to the promotion of a coffee shop, and develop a
marketing model, taking into account the identified factors for the development of this
direction.
The research questions are as follows:
1. What are the factors affecting the successful promotion of a coffeehouse by using
sustainable and experience marketing techniques?
2. How these factors can be tackled for the effective promotion of a coffeehouse by
successfully implementing sustainable and experience marketing techniques?
1. LITERATURE REVIEW

1.1. Sustainable Marketing- An Overview

Essentially, sustainable marketing is the advocacy of ethically and environmentally


sound goods and services. Although sustainable marketing is something that eco-friendly
companies do by default, even companies that aren't inherently sustainable might benefit
from adhering to some of its guiding principles. Its purpose is not to sell anything but to
spread a message.
Maintaining success over time while conserving and regenerating resources is what
we call sustainability in business.
Sustainability is not a brand-new idea despite widespread misconceptions to the
contrary. The United Nations' World Commission on Environment and Development in 1983
was instrumental in developing the current idea of sustainability. Since Norwegian Prime
Minister Gro Brundtland presided over the group, it is often referred to as the Brundtland
Commission.
In its final report after four years of deliberation, the Commission urged government
and business to be more environmentally and socially responsible. Sustainable development
is defined as "development that satisfies the requirements of the present without
compromising the capacity of future generations to meet their own needs," and it was first
used to describe the goal of the United Nations' Sustainable Development Goals.
Since then, value has been generated by companies that prioritise sustainability.
According to Harvard Business Review, businesses that adopt environmentally friendly
policies have better risk management, more innovation, and higher financial performance
overall. Also, increased client loyalty is a perk for sustainable enterprises.
That "sustainability has evolved to a prominent place in business and consumer
consciences," as stated in the Clarkston Consulting 2014 Corporate Sustainability Trends
Report.
Millennials, who now represent $2.45 trillion in buying power, are among the
customers who have taken note of the shift toward sustainability. According to Forbes,
millennials not only have disposable income, but they are also selective about where they
spend it. Roughly 70% of this demographic is willing to pay extra for firms that back causes
important to them.
1.2. Principles of Sustainable Marketing

The five pillars of sustainable marketing are as follows.


 Consumer-centric advertising- In order to achieve success, a business or organization's
marketing efforts must be centred on the customer.
 The Promotion of Customer Value- In order to achieve success in customer value
marketing, businesses must focus primarily on increasing the value of their offerings over
time. Customers generate revenue for businesses because of the value the firm provides to
them. Sustainable!
 Effective advertising innovation- In order to remain competitive, businesses must
adhere to the notion of creative marketing and always seek out new and improved goods,
services, and marketing strategies. Customers will abandon businesses that fail to adapt to
changing market conditions.
 Selling with a higher purpose- A company's sense-of-mission marketing strategy is its
overarching goal to serve society rather than merely sell a specific product. A company's
long-term success as well as the long-term success of its customers and its brand are best
served by adopting a wide purpose.
 Promoting a product to the public- Through the lens of social marketing, businesses
strike a balance between short-term profits, long-term loyalty from consumers, and the
greater good of society. Home cleaning solutions from Method, for instance, are designed
to "hurt dirt without harming people, critters, or the world." The most forward-thinking
businesses see possibilities in the challenges of the future.
Figure 1.1. Principles of Sustainable Marketing (Created by author).

The aforementioned figure 1.1 outlines the main principles of sustainable marketing.

1.3. Sustainable Marketing Strategies for a Coffeehouse

A growing number of consumers are concerned about the effects their purchases have
on the natural world. In reality, customers are seeking to lessen the environmental impact of
their regular coffee consumption, as shown by a study by Square Up. This indicates that
people are more inclined to visit a coffee shop that cares about the environment.
 Provide vegan options- Cutting less on meat and dairy is one of the most effective
methods to help the environment. Almond, soy, oat, and coconut milk, as well as other
plant-based alternatives, produce less greenhouse gas emissions than conventional dairy
milk. The global meat consumption may be reduced by around 82 million metric tonnes
of greenhouse gases annually, according to study published in 2019. Providing vegan
choices to consumers increases the café's potential clientele, fosters a more welcoming
atmosphere, and moves the business closer to its objective of being more environmentally
conscious.
 Waste management intelligence is essential- The global issue of food waste is critical.
The yearly cost of our nation's $20 billion food waste problem is estimated at 7.3 million
tonnes. Find ways to handle the café's trash that will cut down on wasted food. They may
donate the leftovers to nearby farms for composting if they can't handle the volume of
food scraps from the kitchen and the plates of diners. They may take any unsold food
items at the end of the day and give them to local homeless shelters.
 Save power- It might be extremely difficult to manage a cafe's energy use. However, if
the cafe is serious about cutting down on its energy costs, some smart management of its
appliances and machinery would go a long way. They may begin saving money
immediately by replacing incandescent lights with more efficient options like LEDs.
These bulbs are up to 75% more energy efficient than their halogen counterparts. They're
cooler to the touch and last up to ten times as long. Cafes with many of windows may
save on electricity by leaving their blinds open instead of turning on the lights throughout
the day. If business really want to cut down on their energy use, they should also invest in
HVACs that are as efficient as possible. In order to save costs, they need to ensure that
the HVAC system has been optimised to its full potential. There are a number of things
that can be done to optimise HVAC systems, according to the Department of Energy.
These include better control systems, different ventilation and distribution, moving
HVAC units, and regular maintenance. To further cut yearly heating and cooling
expenditures, upgrading to a more energy-efficient HVAC system is crucial.

1.4. Factors Affecting Implementation of Sustainable Marketing Strategies for the


Promotion of a Coffeehouse

Since its inception, marketing has seen continuous development, moving from the
rudimentary methods used by pre-mechanical craftsmen to the sophisticated social media and
relationship-based marketing of the present day. In the middle of the crucial part of the
twentieth century, marketing scholarship progressed from studying how to efficiently sell and
disperse commodities to customers to studying how to design products and understand
consumers and the demands they have. The following paragraphs gives an idea bout the
factors affecting the sustainable marketing of a coffeehouse.

1.4.1. Demographics

Demographics play a significant role in the marketing strategy for small businesses
since they allow for the segmentation of the target market based on certain qualities, desires,
and requirements. Companies utilise demographic information to learn more about the
individuals who purchase their goods and services. By analysing data like age, geography,
gender, occupation, and income, businesses may learn exactly who their target audience is.
Having accurate demographic information allows them to direct their marketing efforts on the
people most likely to become customers, rather than wasting money on those who have
already decided they aren't.

Age Group
When it comes to advertising, knowing the target audience's age range is crucial.
Knowing which platform is best for their needs also requires them. These days, one may
choose from a dizzying array of social networking sites, each catering to a certain age range.
People use social media to stay in touch with friends and family, have fun, and get
their news from credible sources. With the aid of social media, the message may be
disseminated to the widest potential audience. If they're trying to contact individuals of a
certain age, they could find that using age demographics is helpful. One way to relate to a
target audience is to consider the shared cultural experiences, beliefs, and attitudes that exist
among people of similar ages.
Younger generations are sometimes assumed to be more environmentally sensitive
simply because they were raised in a more environmentally conscious period. But some of
the literatures showed that academics aren't in agreement on how age affects eco-friendly
spending habits. In general, there is a disparity between what people of various ages value,
how much money they make, and what they purchase. Using up-to-date and accurate
information is crucial for gaining a thorough understanding of the market's age distribution.
The concept of generations might be useful when considering age distributions. While
demographers often distinguish between four and five distinct generations, these labels are
inherently subjective. Each generation is represented here: The Matures (born before 1945),
the Baby Boomers (1946–1964), Generation X (1965–1980), the Millennials/Gen Y (1981–
2001), and the iGen/Gen Z (born after 2001). (born after 2001).
In both Canada and the United States, the population of people aged 55 and older is
expanding at an unprecedented rate. The elder generation is less varied than the younger
generation (millennials and younger). It is anticipated that this variety will grow over time. It
is more challenging to target affluent millennials and younger consumers since they are more
likely to be members of smaller, more specialised marketplaces (compared to baby boomers).

Gender
Male vs female is not an issue in gender marketing. The key is a complete familiarity
with the consumer and his profile. In an effort to avoid offending anybody, most businesses
nowadays use a "neutral marketing" strategy, leaving men and women alike with the
impression that they were not specifically targeted. Marketers need to embrace the idea of
gender marketing in order to stay competitive and reap the rewards of the dynamic
marketplace.
Because males have traditionally provided for their families, they have held positions
of power in many cultures and nations throughout history. However, as societies age and
undergo economic, social, and demographic shifts, women are increasingly stepping into
leadership positions. Marketers must pay close attention to both sexes because of the
differences in their wants, needs, and mental makeup. This gender-neutral strategy to
advertising, which aims to reach both men and women, is widely used in the marketing
industry. The views shared by both parties are included.
Gender marketing emerged as a result of widespread complaints from both sexes that
they are not being adequately targeted or serviced by traditional marketing strategies. The
term "gender marketing" refers to a strategy in which companies assess the demand for a
product from both sexes independently and provide a solution that meets their requirements.
Marketers must first determine the gender of their ideal clientele before developing a
marketing plan to reach them. Male vs female is not an issue in gender marketing. It's all
about getting a deeper, more nuanced knowledge of the consumer, including.
Women represent half of the world's purchasing power. They are having an ever-
increasing effect on the global economy as a result of their purchasing habits. According to
global professional services company EY, the combined earnings of all women will hit an
unprecedented $18 trillion in 2018.
Equally powerful is the voice of the modern woman. They influence up to 80% of all
purchases, even when they aren't footing the bill.
More often than not, female shoppers are more
 Emotional
 Intuitive
 Social
 Worrisome
 Caregiving
 Sensory-sensitive
There are many other female nuances. Women generally:
 Pay more attention to fashion and design
 Eat less and tend to enjoy grazing and sampling
 Are calorie-conscious
 Request more special diet-driven options like gluten-free, low carb, vegetarian, etc.
 Don’t want to appear as high maintenance, but do have higher cleanliness standards
 Want easy-to-consume food that won’t leave meal evidence on their face
 Are more attuned to discount and promotional news than men
 To leverage these gender traits and generate more business means being fem-friendly in
both the marketing and how to deliver the dining experiences.
Culture and Social Status
Every person is unique and has his or her own set of preferences and worldview. The
term "consumer purchasing behaviour" is often used to refer to the actual purchasing habits
of specific consumers. An individual's surroundings, culture, socioeconomic status,
psychology, and personality may all have an impact on him or her. For marketers to be
successful in today's market, they must first get insight into the thoughts of their target
demographic.
One's cultural background is crucial in understanding a customer's actions. It
represents the shared norms and beliefs of a group of people. Depending on one's upbringing,
one could make the conscious decision to act in a specific way. His upbringing in a loving
family has instilled in him these virtues. Everyone is brought up with a unique set of beliefs
and ideals, which they then internalise and express via their everyday actions as adults. As a
result, the marketer has to pay close attention to the analysis of the culture of different areas
and groups since culture varies from person to person, region to region, and nation to country.
The buyer is influenced by his social circle, his upbringing, his community, and his
status all the way through the buying process. A marketer's analysis or observation of a
consumer's behaviour must account for all of these factors since they have such a significant
impact on the consumer's actions, attitudes, and expectations. People in the south of India
tend to choose rice over roti because of its milder flavour, while those in the north of the
country like roti because of its crispier texture.
An individual's membership groups or social circles are his social classes. People tend
to cluster together in social classes because they share similar beliefs, norms, and practises. A
marketer or researcher should take note of this, since members of the same social class tend
to exhibit similar purchasing habits, regardless of whether their degree of influence is high or
low. This allows for more targeted marketing campaigns. Individuals' purchasing decisions
are heavily impacted by their perceived social standing.
One example would be that people from different socioeconomic backgrounds may
prioritise different aspects of a product when making a buying decision. An outsider who
longs for community might be swayed by the ideals of a social group to which he does not
now belong. A college student, for instance, may feel pressured to acquire a smartphone just
because all of their friends have one.

1.4.2. Organizational Infrastructure

An organisational structure specifies how activities such as task assignment,


coordination, and supervision contribute to the fulfilment of an organization's objectives. The
organisational structure influences organisational behaviour and serves as the basis for
standard operating procedures and routines. Five organisational design concepts exist:
specialisation, coordination, knowledge and competence, control and dedication, and
innovation and adaptability.

Sustainable Design
The organisational structure of a restaurant sets the roles and responsibilities of its
workers, therefore aligning occupations with the activities essential for the restaurant's
success. Due to the fact that each restaurant is unique, the structure may vary. For instance,
full-service restaurants, in which customers are seated, fed, and cared for at tables, will have
a somewhat different structure than fast-food or fast-casual restaurants, in which visitors
place their orders with a cashier. However, the same fundamental framework may be applied
to the restaurant's kind and decor.
For restaurants, sustainability is operating in a manner that protects, maintains, or
restores the natural environment, promotes social fairness, improves the lives of people and
communities, and contributes to the economic success of shareholders and other stakeholders.
Due to the breadth and scope of the concept of sustainability, let's examine just the
environmental component of sustainability in the restaurant sector.
With the emergence of three interrelated and interconnected trends, including the
depletion of our planet's natural resources, an increase in the demand for transparency, and
rising consumer expectations, implementing sustainable practises is not only a good
opportunity for restaurants, but it will be essential for the industry's long-term health and
prosperity. Today, the restaurant sector faces several issues, including sluggish growth, high
operating expenses, personnel recruitment and retention, and the desire to attract a younger
client population. A corporate commitment to sustainability for a restaurant company seems
to be a no-brainer, given that it immediately tackles each of these challenges.
Over the last decade, many businesses' perspectives on sustainability have shifted.
Sustainability was launched by many as a compliance endeavour, by others as a viable
management concept, and by a few because it was the "right" thing to do. As companies
continue to emerge from one of the worst economic downturns since the Great Depression, a
growing number of industry leaders recognise that sustainability, as an ingrained capability
and standard mode of operation, is the key to future success.
One of the first areas of organisation design to codify sustainability is "Management
Mechanisms," specifically the reporting area. Sustainability metrics as valid and essential
gauges of an organization's performance and health are becoming increasingly prevalent. As
a result of demands and/or requirements from investors, market influencers, and government,
the reporting of nonfinancial information has increased dramatically, especially for
multinational corporations.

Maintenance and Repair


As opposed to being acknowledged as a sustainable strategy to product use and
production, maintenance and repair are seen as routine practises in modern culture. While
focusing on the next big, shiny item, we forget about our existing infrastructure, goods, and
equipment.
The circular economy is the primary focus of the twelfth UN Sustainable
Development Goal, which aims to solve this shortfall. The objective claims that "Responsible
consumption and production" will help us minimise our dependency on natural resources,
boost sustainability reporting, reduce waste in all forms, and eventually promote lifestyles
that are compatible with nature.
This is a very ambitious and commendable objective; however, they are lacking a
crucial component: maintenance and repair. The major approach of life cycle management is
maintenance. While it is crucial to reconsider how we build items (and the machinery that
manufacture them) and how we recycle them, we must also consider how we utilise the
products themselves. This is essential to understanding the circular economy and how we
may utilise it to enhance our sustainability efforts.
Currently, our economic system is linear and built on the concept of take-make-waste.
Many of the extracted materials are used and ultimately lost. Several factors make this system
difficult. Its inefficiency is wreaking havoc on our natural environment by generating
massive quantities of waste and pollution, which has a severe effect on our most vulnerable
communities. Minerals, ores, fossil fuels, and biomass comprise every aspect of our lives,
from our houses to our meals.
Maintenance is the most effective method for keeping things in use. Maintenance is
any activity—including tests, measurements, replacements, modifications, and repairs—
designed to preserve or return a functioning unit to a set condition in which it can fulfil its
needed tasks.
There are maintenance examples in every facet of life, from brushing your teeth to
changing the oil in your automobile and cleaning the dishes. All of these are sorts of
maintenance that keep ourselves and our possessions operating as intended.
In industrial contexts, maintenance is carried out using a number of approaches that
are tailored to the asset in issue. Typically, these tactics are used on some of the world's
largest machinery and equipment. Managing airflow and air quality in electrical and HVAC
systems, changing filters, cleaning bearings, inflating tyres, and repairing conveyor belts,
reactors, and pumps are a few examples. This occurs in industries, food processing and
energy production facilities, manufacturing plants, and data centres. Several of these
processes are kept functioning effectively by maintenance and repair procedures, which
contribute significantly to the triple bottom line of sustainability: people, planet, and profit.
Lean Thinking's primary purpose is to better society by reducing waste. Maintenance
and efficiency work hand-in-hand, resulting in effects that go beyond just reducing waste. As
seen in the graph below, a successful maintenance approach may result in benefits throughout
the triple bottom line.

Better maintenance methods may enhance health and safety, workplace quality, and
the local community. According to a number of studies, greater maintenance is connected
with a reduction in injury frequency, and inadequate maintenance accounts for 10% of
workplace occurrences. Maintenance may enhance air quality, decrease emissions, and
minimise waste from an environmental perspective. Additionally, it may increase asset
longevity, decrease energy use, and decrease water consumption. A preventative maintenance
programme may reduce raw material consumption by 20%. Regular maintenance in the
residential sector may save up to 35% on energy expenses. Researchers discovered a 30%
drop in vehicle emissions after maintenance.
Maintenance decreases costs, enhances usage, and facilitates compliance from an
economic standpoint. These are the most prevalent signs of success. In certain cases,
predictive maintenance may save expenses by up to 12% and downtime by up to 45%. It is
essential to an organization's performance to quantify all the areas in which maintenance has
an effect. By highlighting these efficiencies and giving maintenance the credit, it deserves,
the circular economy will be advanced.

Marketing Expenditure
An advertising budget is the amount of money spent on advertising. Businesses
engage in marketing in a number of ways, including market research, product development,
promotions, sales, and customer service. A company's marketing budget is the predetermined
sum of money the company is willing to spend on advertising.
Advertising costs associated to study funding include, for instance, the purchase of a
market study or the publication of an industry report. A large portion of a business' marketing
budget goes on promotion and advertising. Advertising-specific marketing budgets include
the costs associated with creating and airing advertisements on television, radio, print media,
outdoor media, and digital media. The cost of running a client loyalty programme, which may
include offering incentives like discounts or freebies, is also factored into the total cost of
advertising.
Advertising, public relations, and sales are all methods of promotion that may be used
to bring in more business. Investments of several thousand dollars on advertising copy may
not be feasible for some smaller businesses. Marketing and aggressive sales tactics are only
worthwhile if they bring in the correct kind of clientele. One may increase brand awareness,
inform consumers of the value they will get from their products or services, and win their
loyalty via strategic marketing campaigns. Businesses may boost sales and acquire new
clients by using upsell and cross-sell techniques.
The ad budget is also impacted by a number of company- and product-related
elements. To build a client base or roll out new items, a start-up firm may initially spend
more money than an established company of comparable size. Due to the increased
requirement to offer advantages and value, businesses with costlier or more differentiating
items may also have larger budgets than those with price-driven products. Because they must
reach more people and compete with more businesses or goods, larger markets and more
rivals may also result in bigger advertising costs.

1.4.3. Supportiveness

Customer Support
In the context of business, customer service encompasses every contact with a client.
With more channels of communication available to them than ever before, businesses are
making strides by analysing consumer habits and using the insights gained to create more
streamlined operations.
Customer service refers to the internal corporate resources that are available to
customers for help with a product's technical aspects after they've made a purchase. The
customer service department has to be reachable, accessible, and quick to respond since
customers often seek assistance when they are having problems.
When we talk about customer service, we're referring to whatever the business can do
to make your customers feel valued and ensure they get the most out of your offerings.
Support for customers, upkeep, and similar initiatives are all examples of how these funds
might be put to use. Technical and product questions are the primary emphasis of customer
support, which may be thought of as a subset of customer service. Many people use these
phrases interchangeably, but it's important to understand the distinctions between them.
Customer success is the process of anticipatorily learning about a client's company in
order to better serve them. The organisation may have a significant impact on a client's ability
to achieve their objectives via the use of a well-thought-out customer success plan. Customer
success focuses on anticipating and satisfying customer needs, whereas customer support
responds to issues when they arise. Recruiting strategies, key performance indicators (KPIs),
and metrics may all undergo revisions as a result of customer success efforts.
Any company selling a tangible product or service must dedicate resources to
assisting its customers. Even while every support team's distinctive talents and capabilities
must be matched to its own set of customers' specific requirements, customer support
nevertheless offers significant advantages to any enterprise.
The quality of the help provided to customers may have a big impact on their
happiness. In most cases, customers will contact assistance when they are encountering
difficulties that need to be addressed. The customer's satisfaction (or lack thereof) may hinge
on the response from the support staff.
The support staff will be the first point of contact for consumers. This exchange may
be used to direct users to interesting information that will keep them coming back for answers
to their inquiries or issues. Furthermore, client comments gathered throughout the support
process might be quite helpful in shaping future enhancement strategies.
Every company hopes that satisfied consumers will return again. When a company's
customer service personnel can articulate what's expected of them and then deliver on that
promise, that company is in a strong position to succeed. Self-service alternatives, competent
employees, and quick response times are some of the most desired qualities of customer
support.

Government Support
There is a strong correlation between the level of government intervention in a market
economy and the level of influence that businesses feel in terms of their ability to pursue
certain strategies, raise capital, and ultimately increase their profits. The specific framework
within which all businesses must operate is determined by the legal system and public
policies enacted by the government. Governments also levy taxes on businesses to recover
the costs of providing the public services they use.
Corporations are a product of government regulation. In accordance with the rules set
out by the government, businesses may exist and function as separate entities. Laws
regulating the private market system have an effect on the market economy, but so do
specific policies, regulations, judicial (court) decisions, taxes, and government spending.
These governmental actions are an ever-evolving component of the dynamic business
environment in which all companies must operate. All businesses are affected by public
policies that address energy use and climate change in the United States and other countries,
but businesses with a focus on sustainability are hit particularly hard.
It is generally true that the private market system is the greatest way to guarantee the
best, most highly valued utilisation of scarce resources. However, the free market does not
always make the most efficient use of a country's resources. When public goods and
externalities (which will be discussed in more depth in the section that follows) are absent,
the market (without government) may function optimally, making the best use of society's
finite resources. When complete information is available on how private market activities
influence so-called third parties (those who are not directly participating in the market
activity), it works very well.

Public Policy
Crafting effective public policy requires careful consideration of several factors.
There are a lot of people involved in this. There are various organisations and people working
with and against one another to influence politicians' decisions and actions. These actors use
a wide variety of strategies to further their goals. The strategies may consist of lobbying,
public advocacy, attempt(s) to educate supporters and opponents, and mobilisation of allies
on a specific topic. The political process almost never results in perfect policies. Policy
results are often the result of negotiations between competing interests.
When deciding which policy to support and promote, a company will take its own
financial interests into account. The policy's political viability, the degree to which it has
widespread support, and the policy's efficiency and cost-effectiveness in attaining its goals
are additional important factors to think about. The price tag on a zero-emissions programme
is out of the question, for instance. While there would be many upsides to achieving net-zero
carbon emissions, doing so would be financially prohibitive. A more logical and cost-
effective approach would be to gradually reduce carbon emissions from automobiles, maybe
by 5–10% over the course of the next 5–10 years.
Many different things may affect government policy. Public opinion, economic
circumstances, breakthroughs in science and technology, interest groups, non-governmental
organisations (NGOs), commercial lobbying, and other political activities are all examples of
such elements.
Changes in public policy frequently occur slowly because of the myriad of forces that
may pull and push in various ways. Unless there is a crisis, and even then, the influencing
variables may work to impede the creation and implementation of new policy, and may lead
to gradual rather than dramatic changes in public policy. As with the government's
comprehensive climate change strategy and the opposition from certain significant energy
businesses, influencers are frequently more successful at preventing policy change than at
getting new policies implemented.

Technological Support
Sustainable Marketing may be influenced by technological developments, which are
often driven by commercial and market possibilities. In addition to having direct effects on
businesses, the ever-evolving nature of technology also has a knock-on effect on society at
large as public policy adapts to new technologies. Public support for programmes that
encourage renewable energy and energy efficiency and that prevent environmental harm may
be bolstered by the introduction of novel, less expensive, and simpler technology. Examples
include programmable thermostats that interact with mobile phones and innovative packaging
designs and materials that lower environmental costs. Another example is technology that
allows for mass manufacture of full-spectrum solar cells, which drives down the price of
solar energy.

1.5. Experience Marketing


Experiential marketing, sometimes known as "experience marketing," is a method of
promoting goods and services via live events. In order to maximise the return on investment
from existing customers, experience marketing strives to improve their overall satisfaction.
There has been a shift in the marketing and business world toward "experience marketing."
It's a fresh take on advertising that promises to explode in popularity in the coming years.
Though there is widespread agreement that experiences are essential ideas in modern
marketing, there is less consensus on what those phrases really mean. Various perspectives
and methods are accessible, therefore there are many ways to interpret and respond to
experiences. Experience marketing, experiential marketing, and customer experience
management are three examples of phrases that are sometimes used interchangeably yet have
different meanings (CEM).
When compared to other consumer and marketing notions like choice, attitudes,
customer happiness, and brand equity, experience is a more nebulous idea and empirical
phenomena.

1.5.1. Differences between Experience Marketing and Experiential Marketing

Understanding is built from one's past encounters. The term "marketing" refers to the
sequence of events that begins with an external stimulus and ends with a favourable shift in
consumer knowledge, understanding, or behaviour. It is the stimulus, such as the marketing
mix, that causes the experience to occur. Interpersonal (between individuals) or intrapersonal
(inside a person) stimuli, as well as marketing stimuli and environmental factors, all qualify
(e.g. economic, technological, cultural).
Due to its subjective nature, customer experience is shaped by the individual's
priorities and goals. One's perceptions from experience might form the basis for his or her
own version of reality, one that is shaped by the ways in which one interacts with the world
around him or her.
The meaning of the world is constructed by the consumer. A person's experience is
significant because it shows a meaningful connection between their perceptual activity and a
real-world situation. When a consumer attaches significance to a product, service, or event, it
shapes his or her life circumstances, which include all the people and things with whom he or
she has significant relationships.
Attitude and conduct changes are possible outcomes of life experiences. There are
three parts to a customer's attitude: cognitive (ideas, theories, and theories), affective
(emotions), and conative (intentions, actions, behaviour). Typically, an attitude develops in
this order: cognitive > affective > conative. These events might form the basis of something
profound and instructive. Feelings, facts, and theories all make up what we call "meaningful
experience". As can be seen in Fig. 1, a meaningful experience encompasses more than just a
specific instance of an emotion or sentiment. A customer's thoughts and beliefs could be
influenced by a more complete and satisfying experience.

The difference between experience and experiential marketing (Source: adaption of


Leppiman, Same 2011).

The aforementioned Figure 1 emphasises that the experience marketing platform is


more comprehensive and strategic than experiential marketing.

1.6. Factors affecting the Implementation of Experience Marketing Strategies for a


Coffeehouse Promotion

The internet has opened up a world of possibilities for today's companies and
customers. With only a website, businesses can instantly and painlessly contact customers all
across the county, or even the globe. Concurrently, consumers now have access to a global
marketplace's worth of goods and services.
Possibilities for fame and fortune are really high. Now the issue is that it has made all
markets more competitive. Just look at the pizza business. When someone goes online to
purchase pizza, they are shown a long list of choices at once. There will never be the same
business climate again.
Businesses now need to find a method to cut through the clutter and stand out from
the crowd if they want to succeed in current market. Even if there are numerous time-tested
methods, the quality of the customer's experience is crucial to the success of every company.

1.6.1. Product Features

Price
Offering a lower price is a common way to get people to buy what they're selling
since it seems like they're getting more for their money. The price-quality-value model and
the means-end model are two well-known examples of the theoretical models established in
marketing research to examine the connection between price and consumers' opinions of
goods (Zeithaml 1988). These models postulate that when prices rise, so do consumers'
perceptions of the associated quality and sacrifice (the cost of the premium) and that the
relative weights of these two factors, along with others, determine how much of a premium is
justified. A high price usually means a good quality product in the eyes of the buyer.
Price-quality-value theory (Monroe and Krishnan 1985) and the means-end theory
(Zeithaml 1988) suggest that customers should see deeply discounted items as being of
poorer quality. However, studies examining the impact of discounts on consumers'
evaluations of a product's quality have shown mixed findings. Both Huang et al. (2014) and
Rungtrakulchai (2013) found a positive correlation between price discounts and product
quality, with larger discounts being associated with higher estimates of value, while
Garretson and Clow (1999) found the opposite, with larger discounts being associated with
lower estimates of value, and Grewal et al. (1998a) found no correlation at all.
The price-quality-value model and the means-end model may be at odds with one
another since they focus exclusively on the short-term effects of price, although price
reductions might have a long-term, positive emotional impact. Value expression (perceiving
oneself as a knowledgeable or excellent shopper), exploration (being stimulated to try out
new things because of the promotion's low price), and entertainment value are all hedonic
advantages found by Chandon et al. (2000). (fun to use the price promotion).

Availability
One definition of "availability" is the business's capacity to satisfy customer demand.
Customer dissatisfaction is inevitable if the firm is unable to meet demand for the product or
if customers are forced to join lengthy waiting lists. Consistent product availability is the
bedrock of a successful business, since it guarantees a steady source of cash and keeps
consumers coming back. If one fails to meet customers' needs with respect to product
availability, pricing, and delivery, they may lose out to rivals who do. Simply said, the quality
of the shopping experience tends to decline as more and more items become inaccessible to
customers.
Negative impacts on sales may be substantial when merchants experience stock-outs.
Inventory levels may wreak havoc on sales, profit, and customer happiness if supply chain
problems or demand fluctuation aren't anticipated and addressed in a timely manner. When a
firm has stockouts, or runs out of items that consumers want to buy, it may affect its bottom
line and reputation in the eyes of consumers. However, it's not a good idea to have excessive
quantities of every stock-keeping unit (SKU) on hand just to fulfil demand. Purchasing an
excessive amount of stock raises the possibility of having surplus or outmoded product on
hand and ties up cash in carrying costs (the costs incurred by a business as a result of keeping
inventory in a warehouse, distribution centre, or retail location). A corporation runs the risk
of putting resources into inventory that may be used elsewhere.

Quality
Those who shop commercially have high standards, and they want everything they
buy to be a good deal. Perceived quality is more essential than real quality when selling a
product. If a buyer does not consider it to be worthwhile, then it is not. In Coffeehouses, the
importance of good food is often overlooked outside of the kitchen. High-quality food is
crucial for meeting the demands of the market. In order to meet the requirements and
expectations of the customer, food quality is crucial. The high quality of the food served is a
given at this establishment. It's no secret that diners' overall happiness levels are directly
correlated with the quality of the food they order at a restaurant. Customers will be more
loyal to a restaurant if they like the cuisine there. Flavour, appearance, temperature,
freshness, nutrients, and menu diversity all contribute to what we call "food quality." The
number of times a consumer chooses to dine there again is directly related to the quality of
the food served there.
There has been an uptick in academic interest in restaurant menus recently, perhaps
due to the widespread belief that menu diversity is the single most important indicator of
restaurant quality. The quality of taste is a sensory one. After ingestion, one may evaluate the
flavour. Nonetheless, consumers form expectations of flavour based on factors like as cost,
perceived quality, the appearance of labels, and the reputation of the brand. Customers are
more likely to be satisfied if they like the way the meal tastes.
The way food is served has a significant impact on how satisfied diners are with their
meals. Concerns about the restaurant's commitment to providing healthy options have a major
impact on both consumer expectations and restaurant selection. The scent, freshness,
juiciness, and crispness of the meal are all indicators of its freshness. The happiness of diners
is directly proportional to the quality of the food served to them.
Managers are confident that increasing spending on marketing and promotion will
lead to a rise in revenue. According to his findings, satisfied customers' recommendations to
their friends, family, and co-workers may have a substantial effect on revenue. findings from
a study examining how customer pleasure and trust together affect repeat business and
recommendations to others (WOM). Data from a large-scale study of United Kingdom fixed
line telephone consumers shows that enjoyment and trust are substantially correlated with
customer retention and good word of mouth. Therefore, the researcher considers word-of-
mouth endorsement crucial to the success of this investigation. The following figure 2.3 gives
an overview about the factors that affect customer satisfaction.

Food quality

Customer
Service quality service
experience
Revisit

Intention
Price
Customer
satisfaction
Word of mouth
Dining
environment

Figure 2.3 Factors Affecting Customer Satisfaction (Kumar et al., 2013)

1.6.2. Aspects Related to the Coffeehouse

Accessibility
There is a wide range of possible conveniences. Customers in today's Age of the
Customer anticipate having several entry points for interacting with a business. Every
customer has their own preferred mode of contact, whether it's via an online form, a social
networking platform, the phone, or even in person. The onus of providing these options to the
customer is on the business.
Businesses may improve their connections with customers of all abilities by
implementing accessibility measures that benefit both groups. In addition to ensuring that
everyone has the same opportunities, accessibility measures may also provide improvements
that are more user- and people-centred. Voice activation, auto-correct, pedestrian-friendly
curb heights, and automatic door openers are just few of the innovations that were initially
developed for a certain group but have now found widespread use. They show how accessible
design can make stores welcoming and convenient for consumers of all abilities.

Ambience
Undoubtedly, the restaurant's ambiance is a major factor in how satisfied a client
leaves. Diners' overall impressions of a restaurant are shaped by its ambience, which is the
sum of its food, service, and ambiance. The food is crucial, but consumers want more than
just that when they dine out; after all, they didn't choose for takeout, so they want to have a
unique dining experience. Especially in the wake of the epidemic, when many eateries have
gone out of business, this is crucial.
Diner satisfaction and repeat business may be affected by factors other only the meal
itself, such as the ambiance. The author found that the ambiance of the eating area was a
significant factor in how satisfied a diner was with their meal. This helps establish the mood
for a pleasant meal. It follows that a customer's opinion of the restaurant's service and
ambiance is likely to have a role in their ultimate choice to return. It has been shown that the
quality of service is just as important as the ambiance in determining whether or not a client
will be happy or likely to return. The author also found that the quality of the service
provided had the greatest impact on the level of satisfaction and the likelihood that a client
would return. However, managers and researchers alike have a challenge when trying to
choose which reference point to employ in a study. This is caused in part by the dearth of
data available to provide an appropriate response to the benchmarks of comparison used by
customers in different contexts. While many forms of service standards have been presented
in the marketing and consumer behaviour literature, only predictive expectations have been
the subject of extensive empirical study in the tourist and hospitality fields. We also don't
know whether using one set of criteria for evaluation over another yields consistently happier
outcomes.
Diners are looking for more than simply a satisfying meal when they visit a
restaurant. Since diners like feeling pampered and special when dining out, the ambiance of a
restaurant plays a key role in fulfilling these desires. Therefore, with the correct ambience,
clients may anticipate having a good time, and they may even decide to remain longer than
they originally planned so that they can take in the ambiance for a little while longer.
Customers eat out for both the experience and the quality of the cuisine; therefore, a
restaurant's ambience is crucial to retaining regulars. Maintain an environment that is
consistent with the kind of dining experience the business hopes to provide. The key is not to
go overboard with the decorations, since there may be some clients who do not like them. In
order to avoid giving the appearance to patrons that the chairs aren't tucked in correctly or
that there are masses of crowded tables, care must be used while arranging up the chairs in
the restaurant.

Convenience
In order to make their products or services more convenient for customers, companies
need to develop methods to get rid of any "friction" that may arise when a person is trying to
do business with them. Feedback and evaluations from existing customers frequently
highlight instances in which the company (or a competitor's!) falls short of consumers'
expectations of ease. It's a terrific way to learn about the buyer's experience and find places
where things may be made easier or more streamlined.
The need or desire for ease in the use of a product or service is a key factor in
consumer choice. Convenience was shown to have a significant impact on how people rated a
service as a whole. Convenience has a significant influence on a customer's choice to interact
with service and may, in fact, lower the cost to serve, which is why millions of dollars are
being spent on the one-click patent battle.
Considering the importance of convenience, it is easy to understand why consumers
choose one brand over another. On the contrary, an awkward customer experience will drive
consumers away from your firm - this isn’t an exaggeration. Most consumers (97%), if given
the option, would rather not complete a purchase if the service was
inconvenient. Convenience is the mainspring of the expansion of ecommerce; companies
should thus aim towards expanding in all sections of their company.
At first glance, "customer convenience" might be a vague concept. While customer
convenience may take numerous shapes, it always revolves on making the client's experience
as pleasant as possible during the whole transaction. Providing ease of purchase is just part of
providing convenience to customers. Instead, it entails simplifying every step of the
purchasing process for the client. Making the whole customer experience, digital or
otherwise, more convenient for customers is a top priority. There are numerous goods,
services, and other offers that are convenient for customers, but this is not the case in all
industries.
Customer repeat purchases and word-of-mouth publicity are tied to initial purchase
satisfaction, and happy customers help the firm by delivering free word-of-mouth advertising.
Furthermore, customer contentment leads to a feeling of loyalty. Therefore, satisfied
consumers are essential to a business's prosperity, since their loyalty and advocacy are the
two most direct routes to growth. However, recent studies reveal that pleasing clients alone
may not be enough to create lifelong patrons. A study of car owners found that although
85%-90% were happy with their brand of choice, just 40% of buyers repurchased it.
Although there isn't a direct line between service quality and results, several studies have
shown that offering high-quality service positively affects future behaviour. For example,
high relationships were revealed between service quality and behaviour goals, such as
pleasant word of mouth and recommending the company to others. Customer evaluations of
service quality and willingness to recommend the company were also shown to have a
beneficial and considerable connection. It's common knowledge that diners place a high value
on having tasty food while dining out. Food quality is a need for satisfying consumers' wants
and expectations. In a full-service restaurant, researchers looked at the relative importance of
meal quality, physical settings, and service and found that food quality was the most
important predictor of customer pleasure, but it only explained 17 per cent of repeat
patronage intentions.

Choices
The conventional wisdom is that having more options available to us improves our
quality of life. It's true that having options at work might help us feel more in command of
our situation. Due to the proliferation of internet companies, modern consumers are used to
having several alternatives from which to choose.
Despite its generic name, the company's owners shouldn't ever put profit over the
needs of their customers when it comes to convenience. In the era of e-commerce, customers
place a high value on convenience and actively seek it out. It's been shown that 83% of
consumers place a higher value on purchasing ease than they did five years ago. Consumers
have become used to a plethora of alternatives, yet many still express a fervent desire for
even more variety. However, it doesn't make it a smart move. Humans' limited capacity for
cognitive processing means that making decisions is seldom a pleasant experience.
To put it another way, the proliferation of options has made it harder for customers to
choose the products that best suit their tastes. As a result, they can't gain an advantage by
adding additional options to the market if competition for the product is already fierce.
Instead, businesses may plan ahead of the competition and exceed them by making the
selection process more enjoyable and less taxing for their clients. They can create a system of
options that really helps people. Rather of trying to trick customers into making decisions that
aren't good for them, a more modern approach to choose should encourage two-way
communication and cooperation.
The research and studies show that the five most important factors in choosing a
restaurant are the quality of the cuisine, the variety of food, the price, the ambiance, and the
location. It seems that diners take a variety of factors into account while deciding on a dining
establishment. The author also discusses five criteria that might be helpful when deciding on
a restaurant: food quality, menu variety, pricing, atmosphere, and accessibility. According to
the study's author, diners place a premium on a restaurant's responsiveness to customer needs,
menu diversity, meal quality, value, and ambiance. As the author notes, the criteria that
matter when deciding where to eat are specific to each kind of restaurant. He argues that one's
priorities while deciding where to dine may shift depending on whether or not the meal is
being enjoyed in conjunction with a special occasion. Based on these criteria, the customer is
building a restaurant set that includes several options that are almost indistinguishable from
one another in terms of food quality and service.
Customers make their decisions based on factors other than the food's quality, variety,
or cost, since these eateries are all essentially the same. The demand for alternative meals,
such as those made using regional ingredients, is growing rapidly. Many individuals are
beginning to appreciate the benefits of changing to a healthier diet. As a result, more
individuals are considering alternative approaches to reducing food miles and facilitating new
partnerships between consumers and farmers in their communities. Evidently, there are a
number of reasons that lead to difficulties in the connection between customers and farmers,
such as the inconvenient location of the farmers, a lack of clear information about the
location, and the difficulty of travelling to the distance.

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