Ethels Chocolate Lounge: Case Study - Essay Example

? Ethel’s Chocolate Lounge: Case Study Ethel’s Chocolate Lounge Industries have always been characterized by innovativeness either in technology or strategy stemming from cut-throat competition. This trend has increased tremendously in the last 20 years mostly due to increased technological advancement and globalization. This study will explore the case of Ethel’s Chocolate Lounge, opened in 2005 in Chicago by the Mars family. The scope of the case study will be to describe the consumer buying decision that best describes the choice to indulge at Ethel’s, discuss the factors behind this, justify the main factor from the several to be established and lastly determine the needs that the Ethel’ experience appeals to most. Consumer Buying Decision at Ethel’s According to Lamb, Hair and McDaniel (2011) consumer buying decision types can be classified into routine response behavior, limited decision making, extensive decision making and impulse buying. Analysis of the case indicates that the consumer-buying behavior that best describes the Ethel shoppers is routine-response behavior, which involves high frequency and little decision effort. Some of the products observed to fall under this category include snacks and soft drinks which fit perfectly into the Ethel’s business of selling chocolate and hot and cold beverages. The passage on Ethel’s highlights the fact that the opening of lounges aims at attracting chocolate lovers in a similar fashion to the way coffee lovers flock to Starbucks, which indicates high frequency that is a characteristic of routine responsive types of decisions. Another perspective that supports routine responsive behavior in indulging at Ethel’s is the emphasis placed on the experience; the hipness, class, and neighborhood experience that encourages socializing will ensure undertaking of that little search effort with the place that provides such an experience being an almost automatic choice for buyers. Factors that influence Consumers to Indulge at Ethel’s Chocolate Lounge There are four factors that play a part in consumer's buying decision. To start with are the cultural factors, which encompass consumer’s cultural values. The others are social factors, which involve the context of interaction with reference groups specific to the consumer. Individual factors come third, and they include gender, age bracket, preferences and consumer's lifestyle among other personal considerations, and lastly the psychological factors such as motivation, attitudes and perceptions (Pride and Ferrell, 2010). In Ethel’s case, the factors at play include social ones where the reference group involves friends, workmates and age mates to whom the chit-chat experience is optimized for at the lounge. Gender comprises the individual factors where the experience provided by Ethel’s Chocolate Lounge is particularly attractive to the females. The age bracket is considerably a young one but most probably in the working class as the description of hip and classy and upward mobility reveal. The psychological factors at play here include the consumers’ attitudes, where we find that Ethel’s is attractive to individuals who perceive themselves to be on upward mobility in the society. Classy and hip find it fit as indicated by drawn parallels for chocolate and the “black” fashion image. The Most Important Factor in the Consumer Buying Decision Although each of the four factors discussed earlier plays a role in influencing consumers to indulge at Ethel’s Chocolate Lounge, the most significant factor appears to be the psychological aspect. In many ways, the management at Ethel’s has made conscious efforts to influence the consumers’ perceptions, motives and attitudes in a manner that will not only attract them to Ethel’s but also make sure they will be loyal. It is more of an indulgence than just another purchasing experience. For example, Ethel’s Chocolate Lounge has cultivated the image of being trendy, hip and classy. Mars has also taken steps to promote the chocolates at Ethel’s and taken the experience as a daily undertaking. This plays well into the minds of the target market i.e. the young and upward looking individuals whose image means a lot. This puts forward the passage, “a perfect way to cater to the American desire to have the best that money can buy” (Strayer University, 2010). In terms of the essential elements that comprise the psychological factor, the consumer’s perception of Ethel’s Chocolate Lounge is that it is full of class and appears fashionable hence attractive to the age group targeted. Attitude-wise, the targeted consumers would wish to associate with not only the product but also the setting that fulfills their upward mobility visions. Pride and Ferrell (2010) define motive as the energizing factor that drives individuals towards satisfaction of their needs, where Ethel’s has struck it perfectly by providing an experience that would attract a calorie-conscious individual. The Needs that the Ethel’s Experience Appeals to Most Needs recognition is the degree of discrepancy in regards to a consumer’s actual state and what they desire (Lamb, 2009). The needs that Ethel’s Chocolate Lounge appeals to the greatest extent are the social class needs among its target customers. The social and class needs manifest themselves in terms of the experience that consumers seek from Ethel’s. It is possible to see that the neighborly environment that allows for socializing but in a classy and hip feel attracts consumers. It is clear that even a calorie conscious individual can be transformed into an indulger thereby expanding on consumer base. Catering for women's social needs also has an extra dimension to their needs; class and appearance to be in upward mobility, in the social staircase, and into a better life. Hence, Mars has had not only to identify the social context needs among consumers but also to cater for the luxury that the target consumers wish to have. Conclusion Ethel’s Chocolate Lounge success is dependent on the routine response behavior among consumers in terms of decision making. Social, cultural, individual and psychological factors are the drivers of the flocking of consumers to Ethel’s. The observation is, however, that the psychological factors play a significant role in this as evidenced by class and luxury perceptions among Ethel’s target market. The social and class needs amongst consumers are Ethel’s priority. These are the primary factors considered when formulating policies and strategies in order to hold on to the consumer base and to attract new ones. This is what ensures a competitive edge in the market. References Lamb, C. W. (2009). Marketing. USA: Nelson Learning. Lamb, C. W., Hair, J. M., & McDaniel, C. (2011). Essentials of marketing. USA: CENCAGE Learning. Pride, W. M. and Ferrell, O. C. (2010). Marketing express. USA: CENCAGE Learning. Strayer University (2010). MKT 100 case study: Ethel’s Chocolate Lounge. Read More