Starbucks Brand Impact Report

This report examines the impact of Starbucks' strong brand on customer purchase decisions in Malaysia. It analyzes the role of brand image, customer attitudes, and key factors driving coffee consumption. The report also explores the factors influencing customer purchase intentions towards Starbucks and the challenges of maintaining customer loyalty in a competitive market.

The impact of brand on
customer purchase intention in
Starbucks

TABLE OF CONTENTS
1ABSTRACT...................................................................................................................................1
31. INTRODUCTION.....................................................................................................................1
42. LITERATURE REVIEW .........................................................................................................3
Brand Communication............................................................................................................3
4. Methodology................................................................................................................................5
4.1 Brand image affect customer attitude in coffee industry..................................................6
4.2 Factors drives customer purchase coffee........................................................................7
4.3 Factors influence customer purchase intention toward Starbucks..................................9
4.4 Challenges for brands like Starbucks customer loyalty................................................11
55. Conclusion...............................................................................................................................11
REFERENCES..............................................................................................................................12

TOPIC- The impact of brand on consumer purchase intention in Starbucks
1ABSTRACT
This report is based on analysis of influence of strong brand of consumers on the
purchase decisions of consumers. Brand is said to be unique name of a company which is used
for differentiate their products and services in market. Starbucks is widely known in market due
to its highly quality and wide range of coffee products. Company was first introduced in Kuala
Lumpur in the year 1998. It has expanded its business operations by reaching at the milestone of
190 stores in the year 2015. Qualitative research has been carried out to analyse reason why
Starbucks is the most recognised brand in the coffee industry in Malaysia. Accuracy and
validation has been conducted effectively for all information by providing various reference to
readers and using the latest document on this specific topic.
2
31. INTRODUCTION
A brand is regarded as a unique sign, symbol, words or combination of these factors
employed in creating an image that identifies a product and differentiates it from competitors. It
is used to differentiate between products among the similar ones and also enable it to charge high
prices in return for clear image (Cha, Yi and Bagozzi, 2016).
Moreover, branding is also analysed as a process of creating a legacy of specific trail
signs in thinking and perception of consumers through different types of communication ways
as well as strategies so that it creates specific understanding and feelings that affects consumers
lives. Therefore, it is considered as application of company’s communication strategy and is
considered as a part of brand communication process.
Currently, coffee has become one of the most important or common choices in beverages.
In Malaysia, the culture of coffee was first introduced in late 18th century, which is presently in
existence from last 200 years (Kang, Tang and Lee, 2015). Malaysia coffee consumption has
risen to become one of the top 10 countries in South-East Asia.
Mainly Western trends influencing the coffee consumption culture of migrants living in
Malaysia have altered the coffee drinking culture of country. Starbucks is an American coffee
brand and coffee house chain. Presently, it is analysed as international brand name in coffee
industry as it has expanded its business operations across various countries. Starbucks is widely

known in market due to its highly quality and wide range of coffee products. Company was first
introduced in Kuala Lumpur in the year 1998. It has expanded its business operations by
reaching at the milestone of 190 stores in the year 2015. Various important facilities have been
introduced by organisation for attracting new and sustaining its previous customers.
2

Increase in brand awareness of Starbucks, has also influenced the buyers to pay the high
prices for the consumption of constructive and recognised brands product. It is a fact that
consumers need to purchase products those brands which provides them high quality at lowest
prices (Kandampully, Zhang and Bilgihan, 2015). For sustaining customers, Starbucks have
also laid emphasis of providing high quality Coffee products at best possible. This has affects
the intention of consumers to create a loyalty towards brand. Therefore, organisations creating
more attractiveness in brand are considered as more beneficial in comparison with competitors.
Consumers always desire to purchase products, so creating strong brand awareness is important
strategy for influencing buying decisions and intentions.
This research is carried out by scholar to understand the impact of brand on consumer’s
purchase in Starbucks. Various important factors that affect the decision and buying perception
of consumers towards organisation is also analysed in this study. Qualitative research has been
carried out to analyse reason why Starbucks is the most recognised brand in the coffee industry
in Malaysia. Along with this, this study is also focused on challenges of brand like customer's
loyalty towards Starbucks.
Objectives of study are mentioned below:
 To understand the influence of brand image on consumer attitude in coffee industry
 To analyse the factors that drives customers purchase coffee
 To identify the factors influencing customers purchase intention towards Starbucks
 To ascertain the challenges for brands like Starbucks customer loyalty
Research Questions
 How does brand image affect customer attitude in coffee industry?
 What are the factors drives customer purchase coffee?
 What are the factors influence customer purchase intentions towards Starbucks?
 What are the challenges for brands like Starbucks customer loyalty?
42. LITERATURE REVIEW
Brand Communication
According to Kim, Kim and Holland (2017), brand image is analysed as current view of
customers towards the brand. This can also be regarded as unique bundle of association within
3

minds of target customers. Brand image can also be encountered as perception, which can also
eventually be created in the minds of customers. The Coffee industry in Malaysia has achieved
wide growth due to increase in demand of coffee products among Western culture people who
are residing or working in Malaysia. Jang, Kim, and Lee (2015) describes that brand image of an
organisation in coffee industry has been developed through wide advertising campaigns with
consistent themes and is also authenticated through consumer's direct experience.
Kim and Lee (2017) viewed that intentions and decisions of customers towards the
purchase of products and services that are affected by identification and recognition of brand
among people in market. They always spend money for consumption those products which are
mostly proffered by other people. They always develop perception for particular brand after
consumption its products and services in market. As per the view of Kim and Shim (2017), a
positive brand image makes the process of decision making easier and facilitates large number of
repetitive purchase. It also helps in increasing sales of products in market and creates brand
loyalty among customers.
According to Samoggia, and Riedel (2018), there are various important factors that
affects the purchase intentions of consumers such as social factors, economic factors and
advertisement. Purchase intentions are regarded as willingness of consumers to buy specific
products or certain services. It is an independent variable, which depends upon several internal
and external factors such as expected benefits that needs to be obtained from products, estimated
cost and perceived value. Consumers always desire to purchase products so creating strong brand
awareness is important strategy for influencing buying decisions and intentions.
Jang, Kim and Lee (2015), social factors are also considered as key driver that influence
intentions of an individual to buy products of a particular brand. It usually involves friends,
family, colleagues and other relatives who share their experience towards products and services.
Various essential factors are their which influence consumer's perception towards products and
services that affects the decision of consumers and provides major influence on their purchase
decisions. Increase in customer's relationship with brand provide major influence intentions of
consumers to buy products.
Keller's Brand Equity model is also provide understanding that the power of particular
brand lies in what the consumers have heard, learnt, felt and seen as brand over time. It states
4

that brand equity for organisation can be developed from its brand identity, meaning, responses
and relationship. This helps the
According to Peppers and Rogers (2016), it is not only often and easily the consumers
can recall or recognise the brand but also where and when he thinks of the brand. They major
key for acquiring correct or effective brand identity for an organisation is to create brand
salience. By organising various advertisement campaigns and promotion, organisation can
create their brand salience among customers.
As per the view of Keller, for making a brand meaningful for customers it is essential to
create an effective brand image and characteristics. It can be arises out of brand associations
which cane be imaginary and functional related. The imaginary related groups determines how
well the brand meets the social and psychological needs of consumers which influence their
purchase intention. Function related association like product or service performance is the major
aspects that consumer looks for primarily. Apart from this, kind of product, producing and
providing those produce which satisfies needs and demands of consumers is purpose of making
brand meaningful.
5
Illustration 1:
Keller’s Brand Equity Model
(Source: Brand Management - Equity Models, 2018)

Chiang (2018) argued that, company for creation brand equity needs to analyse the
response of consumers. It has divided this response in two parts such as consumer's judgement
and feelings. However consumer's judgements are analysed as its personnel opinion regarding
company and the ways through it puts together performance and imaginary related associations.
Quality, credibility, consideration and superiority are four important judgement which influence
purchase intention of consumers and make brand strong in their mindset. Feelings of consumers
are its emotional reactions towards brand which can be mild, intense, positive, negative and
driven from the head.
Brand relationships has been analysed as level of identification the consumer has on its
brand. In this, brand equity can be created by firm through development deep psychological
bonding of consumers with brand. Keller's provide understanding that brand relationship can be
divided in to four categories such as behavioural loyalty, attitudinal attachment, active
participation and community sense.
Lautiainen (2015) viewed that, organisation will be able to create behavioural loyalty of its brand
among its customer's by providing quality and innovative products at best possible prices.
Attitudinal attachment stated that some consumers can also buy their brand because it is their
favourite possession.
4. Methodology
This is regarded to be conceptual paper that aims for summarising, analysing and
elaborating impact of brand on customer purchase intention in Starbucks. Methods used in this
investigation are literature study where theories of several authors has been analysed to
understand the concept of impact which is created by a particular brand on a buyer that results to
influence his purchasing decision. Apart from this, self reflectivity method has been used arguing
many theories, researches that are previously conducted and other argument published by several
sources (Kapferer, 2017). Also, author's interpretation that are related to impact of brand on
purchase intention of customers. The major objective of this investigation is to understand all
concepts and theories with respect to effective brand development to motivate target segment of
Starbucks. It will result in maximising customer base. It will be beneficial for them, as great
profitability will be attained for successful sustenance in competitive market. Conclusion of this
research can be used for formulating strategies for effective positioning among customers. This
6

investigation paper includes many factors that will lead to develop different brand image of
Starbucks such as communication, management of brand and its effective marketing for
attracting them through several promotional activities.
Published sources which were used for accumulating information related to this context
were journal, books, scientific reference sources and proceedings. For ensuring validity of all
collected data was done through triangulation of theory and other concepts that are related to
brand image in order to provide surety for it legitimacy and credibility. Whereas on the other
side, earlier researches which were conducted on this context refers only partial framework of
brand as well as marketing management. With this paper, author serves more informative frame
of brand development and its communication, which will facilitate all future investigators
investigating in image formulation of Starbucks with a more conceptual framework for their
respective study (Babin and Zikmund, 2015).
Apart from this, there are several benefits of this research paper as it will facilitate
marketing team of the firm for developing effective strategies that would be helpful to create
brand awareness in target market that will lead to develop an effective base of consumers by
providing them loyal buyers. Scholar covered every aspect that lead to influence intention of
customers for preferring Starbucks over other rival present in market. Accuracy and validation
has been conducted effectively for all information by providing various reference to readers and
using the latest document on this specific topic. High Quality products and services tends to
embrace perception of people to buy products that satisfies their requirements.
4. Results and Discussion
4.1 Brand image affect customer attitude in coffee industry
Image of brand among customers plays in essential role in creation of a brand because
the image regarding the reputation and credibility of company later became the guidelines for
the consumer's audience to try or use a product or service. It is analysed public perception
towards brand (Ström, Vendel and Bredican 2014). A unique and powerful brand connection can
be created in perception of consumers by organisation through its marketing activities. Positive
brand image always provide influence on consumers to buy the products and services of brand.
In Coffee industry, consumers always aims to buy the products which are highly preferred by
7

other people. Company's having high brand image can also protect individual to purchase
products and services.
For creating strong brand image, it is essential for organisation they should analyse the
requirements of customers towards coffee products and services. Brand image has provided a
significant influence on consumer satisfaction especially across the coffee industry, banking and
supermarket industries (Udomkit and Mathews, 2015). Store design, Ambience, bank, store
service and sales activities are considered as four major components of brand image. The major
and dominant role of brand image in creating customer satisfaction with in coffee industry is
their customer loyalty, attitudinal attachment, sense of community and activity participation.
Negative brand image of organisation can be also created when they will not provide
focus on its customer's expectation and provide low quality products at high prices. High quality
coffee products and unique service influence consumer behaviour and increase the sales
revenues of organisation.
In addition to this, Keller's model provide understanding that brand equity can arise from
the customer's confidence in brands. The higher the confidence they develop on brand, the more
likely will be they willing to buy the products. In order to provide position influence and
creation of brand equity, Starbucks also needs to develop confidence about its brands products
and services among customers (Jeon and Baeck, 2016). Specially the confidence of customers
can be developed through five important consideration such as performing designed functions,
development of social image associated with burying patterns, recognition of customers and
creating emotional attachment, creating balance between brand's values and its functionalities
and creating consumers trust in brand. However, it can be said that brand image is major
influence on positive perception of consumers behaviour and intentions towards buying products
and services.
4.2 Factors drives customer purchase coffee
There are various important factors that drives to buy coffee and creation their intentions of
people to make as habit. Growth in consumption of coffee can be analysed through its annual
sales and turnover of houses in country. Some important factors encouraging customer's to buy
coffee such as:
Price perception is analysed as on of the leading variable when it comes to consumer
process of buying products and services. There various economist and researchers have also
8

undertaken researches and provides clear understanding that purchase decision prices are the
driving forces. The determinants of prices influences can be both rationale and several studies
have been undergone through this topic. From the study, it is identified that consumers always
willing to buy the products and services according to their perception to buy products and
services. Wu, (2017) refers that, Price perception can also be determines as the amount a
customer which is willing to pay for the products and services they buy from Starbucks. In
other, there are various important buying behaviour of consumers that affects the relations of
customers towards organisation. High prices perception of customers tends to provide positive
influence on business of organisation and increase its sales in market. However, in order to
encourage consumer's to buy coffee products, company needs to improve its quality and provide
special offers to influence customers intentions. High brand image in market also reflects high
price quality. Usually coffee consumers like to buy products from well known coffee house
rather than local producer in Malaysia. They also consider the price as the main elements or
indicator of products quality. Therefore, it can be said that prices is the main factors that marks
the quality. Further, if the prices of company is lower than the consumers' ability to pay, they
think that the product's value is low.
Burke, and Leykin (2014), appropriate atmosphere and ambience of coffee house also
encourage the consumers to spend their time and buy products. The Atmosphere in this involved
environment, temperature, design, music, lightings and social factors. Soon and Wallace (2018),
development of positive atmosphere in Cafe is important part of operations which helps in
attracting new and retaining previous customers. For example: many coffee shops provide
various additional facilities to attract customers such as Games, Wi-Fi and Sockets etc. Different
styles and themes of Cafe also attracts people of different age groups towards organisation.
Culture is also analysed as important factors which drives the consumers to buy coffee
products. In Malaysia, people who belongs to western culture have habits of coffee consumption
and they only prefers those brand which have satisfied their requirements. In recent years, coffee
consumption among people of Malaysia have been increased due to rise in education and
working culture of people. Positive and high educational culture in family influence individual
make Habit of coffee. For Western culture people, Coffee houses are considered as relax point
where arrives to communicate with each other.
9

4.3 Factors influence customer purchase intention toward Starbucks
Customer purchase intention is widely analysed as indicator of subsequent purchase. ()
viewed that purchase is analysed as the possibility of customer's willingness to purchase products
and services. Schivinski and Dabrowski (2015), argued that, purchase intention is behavioural
tendency of consumers towards particular products. Intention to buy coffee is their inclination to
act towards an object.
Price is the viewed as critical factor for purchase intention for consumers towards
Starbucks. Consumers in market always develop intention to buy products on the basis of its
prices. Rezaei, Amin and Khairuzzaman Wan Ismail (2014) concluded that the primary factors
which is utilized by consumers while buying products is price. () viewed that purchase intentions
of consumers in the market to buy products of Starbucks will be higher when the prices the
products will be lower than the acceptable price range and vice versa. However, premium price
of luxury products also influence the intentions of consumer. Author has also stated that buying
behaviour of consumers is also related to each other when its defines the factors such as price,
quality and decision making. Further, in order to increase the sales, it is essential for
organisation to focus on setting prices that match the values of its products. However, company
can also adopt different prices models to influence the purchase intentions of its target people.
On the basis of articles and journals, it is concluded that there is price is the most important
factors which influence the intention of consumer towards purchase of coffee products.
Service quality also plays a significant role in influencing customer's purchase intention
and decision as it determine the capabilities of organisation to meet their requirements. High
quality products and service tends to influence consumers to buy products at high prices. Stores
which are providing the better services to customers leads to a positive behavioural intentions
and thus it increases purchase intentions of consumers. If the services meet the requirements of
customers, then the chances of consumer buying products will tend to increase. Kim and
Holland (2017) concluded that services quality of Coffee house would positively influence the
purchase intentions of consumers which is regarded that organisation that provide high quality
service, then the consumers will have higher buying intentions towards the products.
As per the view of Kim and Lee (2017) , strong brand image has its higher influence on
the buying intentions and behaviour of consumers. Samoggia, and Riedel (2018) specified that,
10

when products has strong brand name, it will be able to influence consumer's preference and
tends to raise their purchase intentions. Usually, coffee brand having high recognition in market
due to their products and services will get more customers because people think that they have
the capabilities to fulfil their requirements. Peppers and Rogers (2016), viewed brand image the
would influence the attitude of people towards coffee products and they always willing to get
more quality at perceived prices.
4.4 Challenges for brands like Starbucks customer loyalty.
Sustaining brand loyalty among customers is considered as major challenges for
organisation in present competitive scenario due increase in number of competitors in market.
Increase in number of substitutes brands in market influence the purchase intentions of
11
Illustration 2: Factors Affecting purchase intentions
(Source: Chiang 2018)

consumers in market. This has also influence the perception of consumers to get similar quality
at products at lowest possible prices. Price is the main factors that influence consumers to
switch to other coffee brands in market (Chiang 2018). Customer tends to develop loyalty
towards brand when they will get products and services with expected quality and prices. In
addition this, consumer tends to embrace quality of products to meet the requirements of
customers. (), also viewed that there perception towards purchase of products and services tends
to enhance customers quality and perception which influence them to buy products and services
at highest possible prices. Customers loyalty can be developed through consumer's intention to
buy products and improvement in quality of products. This will intend to remain customers
perception to repurchase refers their coffee products to other consumers.
55. Conclusion
From the above analysis, it is concluded that brand image plays an important role in
creation of brand image because the brand image influenced the credibility and reputation of
company in market. A brand is regarded as a unique sign, symbol, words or combination of these
factors employed in creating an image that identifies a product and differentiates it from
competitors. It is used to differentiate between products among the similar ones and also enable
it to charge high prices in return for clear image. Consumers intentions to buy products usually
gets affected through various factors such as social factors, price perception and other important
intentions. Increase in customers relationship enable Starbucks to increase number of customers
and sales in market. Purchase intentions of consumers in the market to buy products of
Starbucks will be higher when the prices the products will be lower than the acceptable price
range and vice versa. However, premium price of luxury products also influence the intentions
of consumer. Author has also stated that buying behaviour of consumers is also related to each
other when its defines the factors such as price, quality and decision making.
REFERENCES
Books and Journals
Burke, R.R. and Leykin, A., 2014. Identifying the drivers of shopper attention, engagement, and
purchase. In Shopper Marketing and the Role of In-Store Marketing (pp. 147-187).
Emerald Group Publishing Limited.
12

Cha, M.K., Yi, Y. and Bagozzi, R.P., 2016. Effects of customer participation in corporate social
responsibility (CSR) programs on the CSR-brand fit and brand loyalty. Cornell
Hospitality Quarterly, 57(3), pp.235-249.
Chiang, W.Y., 2018. Applying data mining for online CRM marketing strategy: An empirical
case of coffee shop industry in Taiwan. British Food Journal, 120(3), pp.665-675.
Jang, Y.J., Kim, W.G. and Lee, H.Y., 2015. Coffee shop consumers’ emotional attachment and
loyalty to green stores: The moderating role of green consciousness. International
Journal of Hospitality Management, 44, pp.146-156.
Jang, Y.J., Kim, W.G. and Lee, H.Y., 2015. Coffee shop consumers’ emotional attachment and
loyalty to green stores: The moderating role of green consciousness. International
Journal of Hospitality Management, 44, pp.146-156.
Jeon, J.O. and Baeck, S., 2016. What drives consumer’s responses to brand crisis? The
moderating roles of brand associations and brand-customer relationship strength.
Journal of Product & Brand Management, 25(6), pp.550-567.
Kandampully, J., Zhang, T. and Bilgihan, A., 2015. Customer loyalty: a review and future
directions with a special focus on the hospitality industry. International Journal of
Contemporary Hospitality Management, 27(3), pp.379-414.
Kang, J., Tang, L. and Lee, J.Y., 2015. Self-congruity and functional congruity in brand loyalty.
Journal of Hospitality & Tourism Research, 39(1), pp.105-131.
Kim, H.S. and Shim, J.H., 2017. The Effects of Service Qualities on Customer Satisfaction and
Behavioral Intention in Coffee Shops. International Journal of Industrial Distribution
& Business, 8(5), pp.95-109.
Kim, S.H. and Lee, S., 2017. Promoting customers’ involvement with service brands: evidence
from coffee shop customers. Journal of Services Marketing, 31(7), pp.733-744.
Kim, S.H., Kim, M. and Holland, S., 2017. How Customer Personality Traits Influence Brand
Loyalty in the Coffee Shop Industry: The Moderating Role of Business Types.
International Journal of Hospitality & Tourism Administration, pp.1-25.
13