CHAPTER 2

CASE STUDY
Starbucks is known around the world for the unique blends of coffee it serves its
customers through its coffee service outlets in 35 countries (Refer Exhibit for
coffee varieties sold at Starbucks). Along with coffee, the company also sold a line
of premium tea, cookies, snacks, espresso machines, and coffee brewers.
The company, founded in 1971 at Seattle, US, opened it first international outlet in
1996 at Tokyo, Japan. The company had consolidated net revenue of US$ 5.3
billion in fiscal 2004. More than coffee, it was the Starbucks experience that made
customers come back to the store.

Questions for Discussion:

1. "More than coffee, it was the Starbucks experience that made customers come
back to the store." Assess the service strategies followed by Starbucks.
2. Why did the buying pattern at Starbucks depict loyalty on the part of customers
toward the store?
Starbucks: is always Adapting to
changing consumer habits 

Brand strategies were made examining

the consumer behavior

Some of their successful strategies are

as follows
Unique Positioning Statement
Build Brand Loyalty by Designing
a Rewards Program
FOMO Instant rewards
Create a Consistent Focus on Your Target Market
Brand Experience and Work Out the Marketing
Mix
ENGAGE CUSTOMERS BY SHARING THEIR STORIES
INNOVATE CONTINOUSLY
TRAIN YOUR
EMPLOYEES
INTRODUCTION

•Consumer behavior – meaning

•Consumer Behaviour is a branch

which deals with the various
stages a consumer goes through
before purchasing products or
services for his end use.
Consumer
behavior
in Indian context

Why do we buy the

way we buy?
How do we get
influenced for
buying things?
Consumer behavior in
international context

Why do we prefer
products from outside
india? Is it only quality?

What might be the

buying pattern of
an international
customer?
Have attitudes perception of consumers changed due to
corona pandemic ?
Did any new segment arise during this crisis?
 CHAPTER-2:INDIVIDUAL
DETERMINANTS OF CONSUMER
BEHAVIOUR
CONSUMER
01 PERCEPTION
BEHAVIOUR

02 LEARNING AND MEMORY

03 PERSONALITY

04 ATTITUDE AND BEHAVIOUR

PERCEPTION –
Definition and meaning

•Perception can be defined as the

process of selecting organising and
interpreting or attaching meaning to
events happening in environment.

•It is mental process

•It is based on an individual’s
activities, emotions, feelings,
surroundings and environment etc.
OTHER CONCEPTS UNDERLYING PERCEPTION

SENSATION

ABSOLUTE THRESHOLD

DIFFERENTIAL THRESHOLD
How does Perception affect
consumer while buying ?
Blind test was conducted to determine the power of sensory differences, values between “pepsi” and “coke”

Results Results
of blind after
test revealin
g true
identity
Prefer 51% 23%
pepsi
Prefer 44% 65%
coke
Equal/ 5% 12%
cant say
FACTORS OF PERCEPTION
EXTERNAL FACTORS INTERNAL FACTORS

INTENSITY AND SIZE SELECTIVE ATTENTION

POSITION SEECTIVE EXPOSURE

CONTRAST SELECTIVE RECEPTION,

COMPREHENSION AND RETENTION

NOVELTY PERCEPTUAL VIGILANCE OR

DEFENCE

REPETITION EXPECTATION

MOVEMENT
SUBLIMINAL PERCEPTION
EXTERNAL FACTORS
INTENSITY AND SIZE
POSITION
CONTRAST
NOVELTY
REPETITION
MOVEMENT
INTERNAL FACTORS
SELECTIVE ATTENTION
SELECTIVE EXPOSURE
SELECTIVE RECEPTION COMPREHENSION RETENTION
PERCEPTUAL VIGILANCE OR DEFENCE
SUBLIMINAL PERCEPTION
PERCEPTUAL PROCESS
PERCEPTUAL PROCESS

1. Perceptual Inputs: people objects events information

2. Perceptual mechanism: Psychological aspect
3. Perceptual Selection: Nature of stimulus, Expectations, Motives
4. Perceptual Blocking: Tendency of blocking some information
5. Perceptual Organisation:1)Figure and Ground
2)Grouping
3)Closure
6. Perceptual Interpretation
FACTORS RESPONSIBLE FOR PERCEPTUAL
DISTORTION
1.Personality or Physical Appearance
2.Stereotypes
3.Halo effect
4.Irrelevant Cues
5.First Impressions
6.Hasty conclusions
PERSONALITY OR PHYSICAL APPEARANCE
STEREOTYPES
HALO EFFECT
IRRELEVANT CUES
FIRST IMPRESSIONS
Different Self-Images

Actual Self-Image Ideal Self-Image

Ideal Social
Social Self-Image
Self-Image

Expected
Self-Image
 Self-Concept and Brand Image

Product
Brand
Image

Behavior
Relationship Satisfaction
Seek products
Between self- Purchase
and brands that
concept and contributes to
improve/maintain
brand image desired self-concept
self-concept

Consumer
Self-
concept
Reinforces self-concept
EXTENDED SELF IMAGE
EXTENDED SELF IMAGE
EXTENDED SELF IMAGE
ALTERED SELF IMAGE