Marketing Paper from Purdue Global Consumer Behavior

1. MARKETING TO CONSCIOUS CONSUMERS 1
Marketing to Conscious Consumers
LaTanya Williams
Purdue Global
Unit 2 GB534 Consumer Behavior
Dr. Rita Gunzelman
July 25, 2017

2. PROBLEM RECOGNITION 2
Problem Recognition at Starbucks®
As the Director of Marketing Strategy for Starbucks®
it is important to understand
consumer decisions. This five-phase process begins with problem recognition (Mothersbaugh
and Hawkins, 2016). As customers uncover their perceived wants and needs, leading brands are
responsible for developing valuable products and services to meet these requests. These desires
establish the focal points of marketing strategy for widely known brands like Starbucks®
.
A growing problem that continues to mold the buying habits of today’s consumers is
sustainability. “Two thirds (66%) of consumers around the world say they prefer to buy products
and services from companies that have implemented programs to give back to society”
(Newswire, 2012). With the growing popularity of hybrid and electric vehicles, global warming
talks, and conscious capitalism, a niche market has emerged with good intent.
It is important to understand how these evolving perceptions of problems in the context
of consumer behavior affect purchasing decisions. “Ethical behavior is now recognized as
indispensable for long-term corporate success and effectiveness and a sustainable global
economy” (Legault, 2012, p.1). If businesses would like to remain competitive as the appeal to
conscious consumerism grows, they will benefit from understanding how to integrate these
concepts into strategic campaigns.
Starbucks®
Marketing Mix
For Starbucks®
, social responsibility has always played a major part in fulfilling their
corporate mission. Recent accomplishments include the production of 99% ethically sourced
coffee, a $50 million Starbucks Global Farmer Fund to support developing farmers, and the
distribution of 25 million trees (Starbucks, 2016). These efforts help to improve local
communities and employ workers around the world.

3. PROBLEM RECOGNITION 3
The marketing mix, which includes product, price, place, and promotion, help to further
demonstrate the brand’s commitment to social responsibility. With regard to the product, buyers
can expect distinctive coffees that have been ethically produced. The brands global partnerships
provide opportunities to share best practices that lead to continuous production of high quality
coffees.
The pricing is another consideration. Recently, there was a median increase of 1% for
each purchase during individual store visits (Wahba, 2016). This supports the company’s social
values because a portion of proceeds help to improve opportunities for farmers around the world.
The brand is conveniently positioned within various regions, with over 25,000 locations
in 75 countries (Starbucks, 2016). Many of these stores partner with local community
organizations for service projects. Also, Starbucks®
rewards programs allow for compelling
incentives and spiffs for ongoing customers (Wahba, 2016). This keeps buyers connected to the
brand and its missions. All aspects of the marketing mix enhance sustainability and social
impact.
Starbucks®
Competitive Differentiation
The brand differentiates itself from its competition by leveraging its marketing mix to
realize goals that positively impact the world. Over 1 million people are affected by the brand
through employment, agricultural programs, or community service. Aggressive goals to reach
100% ethically sourced coffee are highly publicized and communicated. O’Toole and Vogel
(2011) believe conscious capitalism is defined by being focused on broader interests. These
values are one of the key differentiators for Starbucks®
.

4. PROBLEM RECOGNITION 4
Active Problem Scenario
According to Mothersbaugh and Hawkins (2016) an active problem is one that consumers
are aware of. Conscious consumers recognize environmental issues and have interest in
supporting businesses who strive to address these concerns. Many customers may be more likely
to purchase Starbucks®
coffee if they are aware of the company’s countless contributions to
sustainability.
Consumer’s Lifestyle
The problem identified by consumers is a need for sustainable initiatives. Research shows
that buyers with interest in social impact are more satisfied by purchases made from vendors
with shared values. “From a list of 18 causes that included the United Nations’ Millennium
Development Goals as well as other prominent corporate social responsibility topics, 66 percent
of socially conscious consumers identified environmental sustainability as a cause companies
should support” (Nielsen, 2012).
Problem Identification
This is also demonstrated through countless product developments to meet the needs of
this consumer group. Undoubtedly, conscious consumers are an influential group that brands
must pay close attention to. This key demographic, with unique identifiers, has gained
momentum in many markets and is a growing segment (Bemporad and Baranowski, 2007). The
Starbucks®
brand is one that is known for effectively serving this market.
When exploring ongoing marketing tactics for further engagement, deeper analysis of
decision making processes are required. Identifying needs to support social causes includes
evaluating levels of involvement, types of decisions, and marketing strategy. Analyzing
situational influences help to identify external factors that might also contribute to buying

5. PROBLEM RECOGNITION 5
decisions. Conscious consumers may have shared values, but practice diverse consumption
habits.
Level of Involvement
Purchasing a cup of Starbucks®
requires medium involvement, which is built on the
premise of moderate options and several characteristics to consider during the purchase process.
There are multiple coffee alternatives, including roasts, levels of caffeine, lattes, teas, and hot
chocolates. They also sell cold brews, frappaccinos, espressos, and smoothies. For some buyers,
who often purchase the same product, a cup of coffee might require low involvement.
Type of Decision
The type of decision involved for a purchase from this brand is nominal. This purchase
process is based on consistency. As a result of successful customer loyalty programs, many
customers visit store locations often. Customers may alternate purchase options, but decide to
drink coffee primarily from this individual brand.
Marketing Strategy Application
Marketing strategy related to social responsibility must be adaptable and authentic to
account for various levels of involvement and types of decisions. Their ability to accommodate
various types of buyers is another distinguishing factor. The brand might acquire more low
involvement, nominal customers who become committed to the brand by presenting details
regarding social impact.
Corporate social responsibility can serve as a differentiator. “As a growing number of
brands aspire to the same values, socially minded business leaders and marketers face the new
challenge of distinguishing their companies, products and services in an increasingly crowded
green marketplace” (Bemporad and Baranowski, 2007, p. 1). Starbucks® is ahead of the curve

6. PROBLEM RECOGNITION 6
and the company’s annual report Global Social Impact Performance offers transparency to reach
the company’s conscious buyers.
Situational Influences
In addition, there are situational influences that might encourage buyers as well.
Starbucks® provides an excellent environment for coffee consumption. The storefront is
naturally filled with pleasant aromas from fresh brews, complimented by soothing background
music. The décor, lighting, and merchandising all create a welcoming environment that
customers enjoy. They also offer free WIFI in every location.
Recommendations
The conscious consumer is one that researchers are progressively understanding. The
concept, as it unfolds, provides a great opportunity for innovative brands to develop new
products that serve the socially conscious buyer. As marketers continue to learn more about this
audience, strategies like cause marketing can help to reach those with shared vision.
In the future, Starbucks® can further engage this audience by referencing their
accomplishments on packaging or receipts, showing their ability to address the wants of this
group. For situational influences, the store might place trees within the store to represent one of
the 25 million trees distributed to farmers.
Inactive Problem Scenario
Others marketing strategies might improve results for inactive problem scenarios. In this
case buyers are not aware of a problem, want, or need (Mothersbaugh and Hawkins, 2016). This
includes coffee lovers who prefer competitive brands and consumers who are unfamiliar with
conscious consumerism.

7. PROBLEM RECOGNITION 7
Marketers might uncover their wants and expose new buyers to social responsibility by
leveraging their current loyal customer base. An annual buy one cup get one free day might
prompt customers to bring a friend or colleague into one of the retail locations to experience the
brand first hand. This annual event might focus on a specific cause or community service
activity. The company might also consider sampling the product within a major grocery chain
and distributing information on its sustainability initiatives.
Another way to bring awareness to inactive problems is by developing corporate
partnerships with companies who support similar causes. Starbucks® can distribute products to
major employers, while partnering to serve farmers, educational programs, and community
service. They can establish channel partnerships within corporations to supply coffee to internal
departments, while promoting corporate social responsibility.
Lastly, Starbucks® can become more visible in the discussion, communicating its commitment
to sustainability throughout various marketing and public relations mediums.
Importance of Understanding
Conscious capitalism specifically focuses on ethics as a driver of business performance
(O’Toole and Vogel, 2011). In developing onward looking marketing strategy, marketers must
be aware of the significance that this has in the marketplace. As today’s consumers consider
concepts like corporate social responsibility, global warming, eco-friendly, social impact, and
conscious capitalism; major brands must consider the most effective marketing tools to introduce
their products or services. At the forefront of this innovation are hybrid and electric cars, solar
alternatives, and campaigns devoted to increasing awareness of sustainability in general.
It is important for marketers to understand that the problem recognition phase can involve
both active and inactive problems. In either example, brands can gain the advantage by analyzing

8. PROBLEM RECOGNITION 8
buying habits and finding ways to reach specific demographics. The conscious consumer market
is one that is aware of a specific problem and that want or need is the organization’s support of
sustainability.
In a study conducted by BBMG involving 2007 participants, Bemporad and Baranowski
found that values based buyers account for 88% of Americans who categorize themselves under
this classification (2007). As researchers learn more about how to identify and communicate
within this segment, marketers can develop more targeted strategies, while creating tremendous
opportunities for business growth and market expansion. Whether pursuing inactive customers or
active customers, there are plenty of ways to meet the needs of conscious consumers with
strategic marketing.

9. PROBLEM RECOGNITION 9
References
Baranowski, M. and Bemporad, R. (2007). Conscious Consumers Are Changing the Rules of
Marketing. Are you Ready? BBMG. Retrieved from
http://www.fmi.org/docs/sustainability/BBMG_Conscious_Consumer_White_Paper.pdf
Hawkins, D. I., & Mothersbaugh, D. L. (2013). Consumer behavior: Building marketing strategy
(13th ed.). New York, NY: McGraw-Hill.
Legault, M. (2012). Conscious Capitalism: Leaders and Organization with a Worldview. Integral
Leadership Review,
Starbucks. (2016). 2016 Global Social Impact Performance. Retrieved from
https://www.starbucks.com/responsibility/global-report
Nielsen. (2012). The Global, Socially Conscious Consumer. Retrieved from
http://www.nielsen.com/us/en/insights/news/2012/the-global-socially-conscious-
consumer.html
Wahba, P. (2016). Your Starbucks Coffee Is Getting Pricier Today. Fortune. Retrieved from
http://fortune.com/2016/07/12/starbucks-prices-coffee/