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Ethel’s Chocolate Lounges: Back to the Future? Chocolate Lounges Taste Sweet Success Date Abstract The report aims to address the following issues after reading the case entitled “Ethel’s Chocolate Lounges: Back to the Future?…
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Download file to see previous pages Ethel’s Chocolate Lounges: Back to the Future? Chocolate Lounges Taste Sweet Success Case Background The case presents the marketing strategies implemented by Ethel’s Chocolate Lounges since its inception in 2005 in the neighborhood of Lincoln Park in Chicago. Reported to be named after the matriarch of the family known to produce the famous Mars chocolates, Ethel, with husband, Frank, the chocolate lounges were designed to parallel the successful stints of coffee shops like Starbucks. The disparity comes in terms of offering chocolate drinks together other chocolate products to sophisticated clientele in search for “approachable gourmet chocolates” in an impeccable environment. In this regard, the case study would aim to address the issues of consumer buying decision; factors that influence consumers to spend and factors that motivate them; as well as needs that Ethel's experience appeals to most. Type of Consumer Buying Decision Ethel’s Chocolate Lounges has explicitly indicated that their lounges “are designed to coddle patrons in the lap of luxury, but Mars president John Haugh maintains that what makes Ethel's special is that it offers ‘approachable gourmet chocolate’” (Cengage Cites, 2008, p. 13). ...
13). Having established their customers’ profile and the products and services that Ethel Chocolate Lounges offer, the type of consumer buying decision depends on the level of involvement of the consumer and the extent of differences among brands (MBA Lectures, 2010). For this case, since the customer is seeking variety and the elegance offered by Ethel Chocolate Lounges, these customers are classified as variety seekers and their buying behavior is variety seeking buying behavior. Accordingly, “variety seeking buying behavior occurs in a situation of low consumer involvement but significant brand differences” (MBA Lectures, 2010, par. 5). Consumers’ involvement are not significantly high since they could be influenced by peers encouraging them to try out the gourmet chocolates and even if these products are significantly high in price, the cost of the products are not too expensive when compared with luxury products or furnitures, appliances and other high priced items. These customers are mostly seeking specialty products requiring cognitive decision making in terms of added comforts and services offered by the lounges aside from the products per se. Factors that Influence Consumer to Spend Money Having established the consumer profiles, the factors that influence consumers to spend money are as follows: (1) a place to chitchat and relax with friends; (2) a venue for experiencing a relaxing ambiance where socializing is encouraged; (3) the option to try new ways to enjoy chocolates (as beverages, as truffles, and in over 50 varieties); and (4) an opportunity to be included in the ‘in’ crowd. Factor that will motivate a Consumer the Most From the ...Download file to see next pagesRead More
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