Analysis of Ethels Chocolate Lounges Case - Essay Example

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). In this regard, the customer’s profile fits the need to satisfy high-quality taste in products despite the high price. To compensate for the high price of their products, the lounges were deemed to focus on offering "a place for chocolate and chitchat”; as well as “their relaxing ambiance and neighborhood vibe-like a modern American coffeehouse, these shops encourage socializing and extended lounging” (Cengage Cites, 2008, p. 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). In 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 is 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 furniture, 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.

            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.

            From the identified factors that influence consumers to spend their money, one believes that the factor that will motivate a consumer the most is the opportunity given by the lounges to socialize and relax in conjunction with savoring gourmet chocolate as a memorable and enjoyable experience. Most of the time, the ability to share moments with friends or loved ones in a place that is appropriately designed to encourage establishing stronger bonds through sharing experiences while sipping a hot cup of chocolate or savoring a uniquely concocted chocolate collection could never be remunerated or computed in terms of costs and monetary price. This motivational factor is deduced from the characteristics and profile of the consumers of Ethel’s Chocolate Lounges. These customers regard social bonds, love, and friendship as motivating factors encouraging them to visit the lounge, try their products, and spend time exchanging experiences in the process.

            Upon examination of the motivational factors, one could deduce that the needs that appeal most to Ethel’s experience are the need for social bonding, love, and friendship. Chocolates are also believed to have the ability to promote well-being (Schmit, 2002). According to Schmitt’s article, “Chocolate gives you an energy lift, less anxiety, a reduction in pain” (Schmit, 2002, p. 1). In this regard, the need to experience an improvement in well-being that could be attributed to the benefits of taking chocolates is magnified by the exhilarating experience of sharing that moment with friends and loved ones in a relaxing ambiance, provided by Ethel’s Chocolate Lounges. The ability of Ethel to satisfy this need accounts for their success in their chosen field of endeavor.