Ethel's Chocolate Lounges Case Analysis:

Ethel's Chocolate Lounges Case Analysis: Ethel's Chocolate Lounges: Back to the Future? The launch of Ethel's Chocolate Lounges in Chicago and Las Vegas are redefining the retailing experience for desserts, beverages and a chance to enjoy the company of friends while relaxing away from work or home. The intent of this analysis is to define the type of consumer buying decision that best describes the choice to visit Ethel's, and also discuss the factors that influence a consumer to spend money and time there.

An analysis of which factor will motivate consumers the most are also provided as is an assessment of what needs the Ethel's experience appeals to most. Analyzing the Type of Consumer Buying Decision to Purchase Chocolates from Ethel's The decision to purchase chocolates from Ethel's is one that is more experiential and based on the senses, less on pure logic or the calculating of price elasticity typically found in the search for a "good deal." Instead, the experiential aspect of purchasing chocolates from Ethel's is what matters most.

The reliance on selling the experience, complete with the visual imagery, the strong smell of chocolate, scent of many different heated beverages all combining to create an differentiated, memorable and repeatable purchasing process is what leads to customer loyalty (Pine, Gilmore, 2008). The type of buying decisions is also aspirational and reward-driven, as the lounges are unique and offer a third place to relax, outside of home and work (Carter, Young, Rutledge, Armstrong, 2006).

The Mars Company needs to tread lightly on this positioning however, as if positioned to be too extravagant, during hard economic times not many people will spend there. It has to be a balance of a unique, service- and sensory-rich experience while also allowing for personalization and a chance to enjoy time in the middle of an experience instead of just a purchase (Pine, Gilmore, 2008).

All of these factors contribute to the type of consumer buying decision that goes into visiting and Ethel's Chocolate Lounge and choosing to purchase chocolates and drinks there. With these parameters in mind, it is clear that the consumer buying decision to purchase chocolates is one driven by the need to aspire to an excellent, high-end purchasing experience, one that is unique and rich in sensory and service value (Pine, Gilmore, 2008).

Mars Company will need to pay close attention to these two aspects of aspirational value of the Ethel's brand and its chocolates, drinks and desserts while continually evaluating and monitoring the experience delivered to customers on the other. These two aspects, the aspirational value and experience itself must be kept in balance for the consumer buying decision to motivate prospects to visit and lead consumers to become loyal over time.

These two aspects will also battle back against the Lounge becoming a novelty and less of a recurring experience, which is a fundamental difference that Mars' management will also need to pay close attention to as well. In conclusion, it's critically important the factors of aspirational brand value, customer experience management, and continual new chocolates and beverages be provided to keep the Lounge away from being a novelty and more of a destination.

Evaluating the Factors That Influence a Consumer to Spend Money and Time at Ethel's The most prevalent factor that leads a consumer to spend money at Ethel's is the anticipated experience of enjoying the entire environment of the Lounge, while also enjoying unique, high quality chocolates and beverages with friends. It is the total experience of purchasing and consuming desserts and drinks there that matter most, not the financial value of the items themselves.

In evaluating the experience of purchasing and consuming chocolates and coffees there, the key factors that matter most to consumers emerge. These include the unique and changing selection of chocolates, the eclectic mix of drinks, the unique furnishings and decorations of the lounges, and the sweet smell of chocolates and coffees as they are being served (Carter, Young, Rutledge, Armstrong, 2006).

It is the combination of all these factors, delivered responsively and with empathy which are the foundations of excellent customer service that make is the most critical factor there is in the reason consumers choose to spend money and time at Ethel's. Any successful services business embodies and continually reinforces the values of service timeliness, reliability, empathy, assurance and tangibles (TREAT) (Sedlock, 2010). These attributes are also essential for any service business to gain trust through authenticity as well (Pine, Gilmore, 2008).

Given how synchronized all aspects of their services need to be in order to delight customers, it is apparent how critical communication between employees and customers are in the day-to-day running of an Ethel's Chocolate Lounge. A consistent concerted effort on the part of employees to delight the customers by combining all elements available to create a memorable experience frames the critical success factors. How each is continually improved and continually integrated together will determine the lounges' success over time.

Most Critical Factor in Motivating Consumers to Spend The most critical factor in motivating consumers to spend at Ethel's Chocolate Lounge is how the purchase and consuming of chocolates creates an experience that delights the consumer. Loyalty is created when a services business can successfully deliver exceptional experiences on a consistent basis and win the trust of its customers (Sedlock, 2010).

The packaging and presentation of a service needs to concentrate on setting expectations and lead to positive experiences, not overcommitting but being reasonable and realistic in defining what customers will receive (Spinner, 2009). This is where the aspirational role of high-end chocolates and beverages enter into the marketing strategy of Ethel's Chocolate Lounge. The chocolates, presented on menus with small pictures or them and a description of their content do more than just inform the customer what they are ordering.

They convey a higher value to them as only the most expensive chocolate manufacturers have the gross margins and profits to support this level of detail. This is part of setting the expectations of customers, as it conveys the value of the chocolates is above average and meant to be savored. The information card is part of the total experience and in fact sets the expectation of the experience being exceptional.

The large couches, smell of fresh coffee and chocolate percolating, the cases of fresh chocolates freshly baked all add up to an exceptional promise.