Consumer buying decisions and experience marketing at Ethel's Chocolate Lounges

Ethel's Chocolate Lounges

Case Analysis: Ethel's Chocolate Lounges

Case Analysis: Ethel's Chocolate Lounges: Back to the Future?

Creating a highly unique, differentiated and memorable dining experience is at the center of the launch of Ethel's Chocolate Lounges in initial cities with further expansions planned in the future. The goal of this analysis is to analyze consumer buying decisions pertaining to Ethel's Chocolate Lounges and an assessment of the factors affecting consumers to choose to spent time and money there. An analysis of the consumer motivations that are most likely to be an effective catalyst for driving additional business are also explored in this analysis.

The Consumer Buying Decision Process to Visit and Spend At Ethel's Chocolates

Dining of all forms, from fast food through high-end dessert and coffee shops all share a common attribute of offering a unique experience first, with pricing often being used as a strong communicator of differentiation and value. What Ethel's Chocolate Lounges are selling is the opportunity to have a unique experience. The experience encompasses high-end desserts and beverages that can be shared with friends, making the experience even more memorable and fun. Ethel's is relying on all aspects of the experience, from the smell of the beverages and chocolates to the experience of being in a high-end establishment with a focus on service. Differentiating on experiences over just product, price or promotion can deliver higher levels of profitability and greater customer loyalty at the same time (Pine, Gilmore, 2008). Ethel's is concentrating on this aspect of the experience, combining their market position with an aspirational and reward-driven message to further motivate customers to invite their friends to an Ethel's Chocolate Lounge (Carter, Young, Rutledge, Armstrong, 2006). As the case mentions, Mars must tread lightly on this positioning as the economic conditions in the United States continue to be recessionary and filled with uncertainly. Ethel's needs to be careful to not appear so extravagant that they are seen as a frivolous luxury despite how unique, valuable and aspirational the experience has the potential of being. The emphasis on how sensory the experience is, from the smells, tasted, ambience, service and quality all need to be reinforced for consumers to see Ethel's Chocolate Lounges as a chance to relax and not as a waste of time and money. With many family budgets under attack from inflation and little if any raises over the last five years for millions of Americans, it could become a hard sell very quickly if they don't position it well. The best possible positioning is to concentrate on how unique, sensory- and service-rich experience, concentrating on how it could become a highly personalized, aspirational purchase with friends or on one's own (Pine, Gilmore, 2008).

Critical Factors in Motivating Consumers To Spend

Trust earned by continually delighting consumers and exceeding their expectations is critical for any business to grow and be profitable over time. When loyalty is developed and continually improved in a services business by delivering exceptional customer experiences consistently, trust is won and fans of brands are created (Sedlock, 2010). Everything about a service concept needs to reverberate with a correct and very accurate presentation of what customers can expect (Spinner, 2009). Setting accurate expectations and then deliberately designing systems, processes, service strategies, pricing and products to exceed them is what Ethel's must do to succeed. Each aspect of the service mix must be coordinated and synchronized with the other so the total customer experience will be underscored by quality and excellent service (Carter, Young, Rutledge, Armstrong, 2006).

Priority of Consumer Needs Ethel's Chocolate Lounge Needs To Concentrate On

The most important consumer need that these lounges need to center on is the need consumers have of purchasing an experience that is aspirational, making them feel important and valued. They want the exceptional service, sensory experiences, atmosphere, ambiance and the freedom financially to share this with friends. This is where pricing becomes so critical for the success or failure of these lounges. Too high of a price will make it uncomfortable asking friends to visit at the lounges as picking up a tab of potentially over $80 just for drinks and chocolate is quite high. Too low, and the price sends the message that the quality of the chocolate is not as good as it could be. The Mars Company has a pricing and positioning challenge with these locations. Above all, the marketing, promotion and service strategies all must resonate with truthful claims and authenticity, as these two qualities fuel of customer loyalty and trust the most of all (Pine, Gilmore, 2008).