Brand Image Influence on Customer Behavior: Starbucks Corporation

This report examines the influence of Starbucks' brand image on consumer behavior. It begins by exploring the concepts of brand image, brand identity, and brand positioning, and then delves into the factors that determine brand image, including quality, service, price, and innovation. The report reviews the customer buying process and identifies the stages influenced by brand image, such as information search and evaluation of alternatives. It uses Starbucks as a case study to assess how brand image affects consumer behavior compared to other factors like price, location, and quality. The research aims to offer recommendations for gaining a positive influence on customer behavior, offering a detailed analysis of the Starbucks Corporation's brand perception and customer relationships. The report also considers the impact of negative corporate news on customer affinity.

“Brand Image and its Influence on Customers
Behaviour. Case Study: Starbucks Corporation”
1. Introduction
The awareness of ethic and social issues seem to be increasingly
spreading around the world, and business is not getting away from it.
People are willing to see organisations being good corporate citizens, and
the next generation of business leaders wanting to make a social or
environmental difference with their jobs (Wharton 2012). One of the
critiques that is constantly heard is that many corporations are still trying
to show that they ‘care’ as a marketing strategy, contradicting what they
say with what they do (Wharton 2012). This should be taken into
consideration by every organisation, since it affects the way customers
perceive the brand. Such perception is considered brand image, and it is
believed to have a halo effect on customers’ satisfaction judgement
(Hishamudding and Nor Asiah 2001).
Creating emotional bonds with a favourite brand can bring many benefits
(O’Donnell and Brown cited Fournier 1998), but it can be difficult to
achieve and maintain. For example, recent studies found that negative
corporate news can have an adverse impact on customer affinity towards
favourite brands, as well as other customer behaviour issues such as
willingness to purchase, price willing to pay, among others (Sago and
Hinnenkamp 2014). To appreciate the impact of negative information and
the strategies taken to battle it, Starbucks Corporation will be examined
and analysed through the present project research.
Starbucks Corporation, as many other global corporations, has faced a
long list of issues throughout its existence that have threatened its
reputation, such as growth obsession, hypocritical campaigns, exposure of

consumers’ information through its mobile apps, among others (Einstein
2012, Seaford et al 2012, CNBC 2014). For example, in the UK, one of the
major controversies has been Starbucks’ intention of avoiding paying
taxes, and in spite the company agreed to pay over £20 million in
corporate tax in June 2013 (Evans 2013), the consequences of such public
information might still remain.
However, one can question why Starbucks continue to be one of the
leading brands within the coffee shops industry. Will it continue to be?
What do customers take into account nowadays during their buying
decision process? How much do corporate culture and strategic decisions
affect customers’ perception of the brand? What is the actual impact on
sales? Is it possible to rebuild a positive brand image and regain
customers’ loyalty? How much does it cost?
The influence of brand image on consumer buying decision is the ultimate
target of the present research, and Starbucks Corporation will be the case
study.
1.1 Aims and Objectives
Aim
To assess the influence Starbucks’ brand image has on consumer
behaviour against other factors such as price, location, and quality.
Objectives
1. To identify and describe the main factors that determine brand image.
2. To identify factors affecting customer purchase decision process.
3. To examine the extent to which Starbucks’ brand image affects
consumer behaviour in comparison to other factors.
4. To make recommendations for gaining a positive influence on customer
behaviour.

2. Literature Review
In order to understand the theories related to the aim of this research, a
wide range of sources have been revised, critically analysed, and
presented in this section. The start point is the concept of brand, including
brand image, brand positioning, and brand loyalty, followed by theories of
perception, and finally it is presented the consumers buying decision
process.
2.1 Brand
Brand is a name, term or phrase, logo, sign, symbol, design or
combination of them used to introduce a product or service (American
Marketing Association 2014). They exist in customers’ minds and depend
on attitudes, lifestyle and psychographics (American Marketing
Association 2014). Torkaman and Nejad (2013) cited Kapferer (1997) who
states that brand is an abstract of identity, authenticity, features and
differences that can summarise and communicate an idea, list of
attributes, values and ethics behind a product or service. Hence, it is not
only about a product’s name, logo, symbol, or slogan; it has also an
intangible nature that functions as a set of promises to customers
regarding trust, consistency, expectations, and performance (O’Donnell
and Brown 2012). Branding is a useful tool that not only helps to
differentiate a product or service from others, but also to develop a close
and often enduring relationship with customer (O’Donnell and Brown
2012).
To achieve both differentiation and enduring brand-customer
relationships, each brand must create a unique selling point, for example:
personal identification (Kaynak et al 2007). Others perspectives suggest
that competition must be pre-emptied from members’ minds through
superior service, distinctive offerings, or communications to minimize

threats of substitutions and develop positioning (Fischer et al 2010). In a
few words, unique appealing features and strategic positioning are very
essential for a brand to be able to attract and retain customers (Torkaman
and Nejad 2013 cited Hogan 2007).
2.2 Brand Image, Brand Identity and Brand Positioning
Brand image refers to the manner in which the public decodes all the
signals emitted by the brand, the idea that occurs to the consumers when
they see or hear that brand (Fill 2013). It can be simplify by saying that it
is the perception of a brand that consumers have.
On the other hand, brand identity is the statement of how a company
wants its brand to be perceived (Torkaman and Nejad 2013). It is a vital
corporate-based concept that can be described as a set of unique
connections of a brand name which brand strategists are trying to create
or maintain (Torkaman and Nejad 2013). Each company should be careful
at the time of selecting the strategies that are expected to distinguish the
company from competitors, as they will be the ones influencing the brand
image customers will perceive and like or dislike. This is the reason why
brand identity is based on the position within the market a company
wants to have. Kotler and Keller (2013) define brand positioning as the act
of designing an image that place a product or service in a distinctive place
inside the target market’s mind.
For example, the airline EasyJet has aimed create an appealing brand
image for low-budget customers based on low fares and friendly service
(Smith 2013), which would be the strategies the company is using as
‘EasyJet identity’ to gain the desired customer perception and a great
position within its market. In contrary, British Airlines has intended to
create a global and caring brand image that offers comfort and luxury
(Luxury Branding 2012). Therefore, the strategies taken differ from those
taken by EasyJet and consequently both brands have a different position

in the market. Theorists the main determinants of brand positioning are
quality, service, price, and innovation (Torkaman and Nejad 2013). To
understand these four factors, more theories have been revised and
presented in what follows.
2.2.1 Quality
It has been indicated that the perception of a product’s quality and its
associated image are becoming increasingly important (Fill 2013).
Commonly, quality refers to excellence and superiority that eases
customer satisfaction (Torkaman and Nejad 2013). It is believed that
quality can be used as a good strategy by coffee shops to exceed
customers’ satisfaction. The reason is that coffee’s profit margin is
extremely high; therefore, by choosing good quality beans, the costs
would not increase in a significant way and the products offered would be
conveniently better (Word Press 2014).
2.2.2 Service
Is a series of activities performed to enable the sale of a product
(American Marketing Association 2014). They are essentially intangible
and independently possess identity (Doyle and Stern, 2006). The quality
of a service depends on the facilities offered and the performance of
employees, who have a great influence on customers’ experience (Yip
2003). Understanding this is vital for organisations that more than
products, what they actually offer is a service (Yip 2003). For example, the
fact that the products coffee shops offer can be found in supermarkets or
made at home requires them to offer an experience through their service
rather than just a good.
2.2.3 Price
Lexically, price means quantification, estimation, magnitude and measure
(Torkaman and Nejad 2013). The degree of knowledge consumers have
about the prices of alternative products and services in the market is
defined as price awareness (American Marketing Association 2014). It can

influence customers’ perspective of a brand image and their purchase
decision (Zenesei and Todd 2003). Despite it slightly loses relevance when
brand names are well established, customers would consider issues such
as whether they can perform the service themselves (Ferrell and Hartline
2011), in this case, by having a cup of coffee home instead as mention
before. Therefore, coffee shops should evaluate the amount of money
consumers are willing to pay so they choose to be served.
2.2.4 Innovation
The need for organisations to innovate has not been greater than in the
present, when brands are required to come up with products and services
that are fresh and exiting (Trapp 2010). It has been reported that to
increase consumption, product innovation is essential (First Research
2014) as well as to gain or maintain a position in a market full of
competitiveness (Mark 2014). It seems that innovation has mostly been
related to products, whereas in the service industry its relevance is the
same. Trott (2011) explains that one of the factors that can be used by
services to attempt innovation is their employees. The reasons are that
the interaction between front-time employees and customers is
unavoidable, so they can be the most value-generating ingredient by
recognising, on a day-to-day basis, opportunities for innovation (Trott
2011). Nonetheless, Trott (2011) advise that because innovation activities
increase workload, attention to motivation, training and support for
employees should be given (Trott 2011).
2.3 Perception
Robbins (1991) conceptualised the term as the process of organising and
interpreting sensory stimuli to give meaning to the environment. The
perceptual process is selective and subjective, and it is based on the
individual experiences and learning (Mullins 2013). This implies that the
way one same stimuli is perceived by two different people can vary

according to factors from personality and life experience to gender or
cultural background.
Branding can be a potential means to secure a competitive advantage
(Kotler and Keller 2012). It can be said that by securing competitive
advantage, a company is more likely to earn customers’ loyalty. The
American Marketing Association (2014) confirms that for a company to
survive, it has to create loyal relationships with their customer, one at a
time.
Brand loyalty provides predictability and security of demand for the firm,
creating barriers for new firms that want to enter the market (Kotler and
Keller 2012). It can be said that it is directly linked to customer
satisfaction, and according to Fill (2013) it provides greater profit potential
in long term.
2.4 Customer Buying Process
Ferrel and Hartline (2011) explain that the customer buying process
consists in five steps consumers might go through when they make a
purchase decision:
 Need recognition Information search Evaluation of alternatives Purchase decision Post purchase evaluation
The key stages that could be influenced by brand image are the
information research and the evaluation of alternatives. For instance,
when customers are going through the stage of information research, they
would look at the degree of risk involved in the purchase, the experience
they have with the product or brand, and the actual cost of the search in

terms of time and money (Ferrell and Hartline 2010). This stage might not
be too relevant for some coffee consumers since the consequence of a
bad decision is not really harmful, neither for the customer’s safety nor for
the economic impact. However, it could be said that disadvantaging
information can distance costumers from the consideration of a brand as
an alternative.
At the time of evaluating the possible options prior a purchase, it is
believed that customers can translate their needs into wants for specific
products or brands, so marketers must understand their choice criteria
and the relevance they give to specific product attributes or any other
issue (Ferrell and Hartline 2010).
Ferrell and Hartline (2010) explain that the post-purchase evaluation is
the connection between the buying process and the development of long-
term relationships, thus marketers should listen carefully to their
customers and value their opinions and level of satisfaction.
When customers are loyal to a product or brand, they may not follow
these steps in sequence or may even skip some. However, this is a
process that might worth paying attention to when reputation or brand
image can be fragile and competition within the market threatening.
3. Methodology
In this section the methodological approach is explained and justified, as
well as the strategies and procedures planned for the development of the
present study. The aim is to inform what influenced the selection of a
deductive approach, as well as the decision of obtaining primary and
secondary data. In addition, the motives for using quantitative techniques
for the collection and analysis of primary data are clarified, complemented
with the reasons why the instrument chosen is a questionnaire.

3.1 Research Philosophy and Approach
To produce knowledge in a particular field, in this case business and
management, it is vital to understand the nature of the research and the
approach that should be given to it (Saunders et al. 2012). There are two
major philosophies to contemplate from which research approaches
derive: ontology, which refers to the way in which reality is perceived; and
epistemology, which denotes what knowledge is acceptable within the
field of study (Saunders et al. 2012).
In terms of ontology, the main position that will be adopted is objectivism.
This ontological stance supports that “social phenomena and their
meanings have an existence that is independent of social actors” (Bryman
and Bell 2006, p.22), and is believed to be appropriate for the present
research to reach the aim and objectives. Therefore, it can be said that
‘brand image’ will be assessed and analysed as a matter that, despite no
two organisations hold the same, its function does not vary significantly,
nor does the function of customer purchase decision process. Hence, both
matters will be treated as variables or social phenomena independent of
social actors.
In what concerns to epistemology, the present research will fall into
positivism. Saunders et al. (2012) explain that this philosophy should be
adopted if it is aimed to study an observable reality and search for
regularities and possible causal relationships. Existing theory is generally
used to develop hypotheses that would be tested and confirmed or
challenged after collecting and analysing creditable data (Saunders et al.
2012). Certainly, the present research consists in revising existing theory,
deriving different hypotheses, measuring the realities required to observe
and finally testing the hypotheses proposed with statistic techniques.

Having understood the previous, the next step is to narrow down what
type of approach should be chosen for the research. Because of the form
of reasoning planned to endeavour, a deductive approach is considered
appropriate. The same is consistent with the need of using existing
academic theory, which will be embodied in the literature review section
together with the set of hypothesis arisen from its revision, as well as a
research strategy as a method to test what proposed (Saunders et al.
2012). For this type of approach, it is also necessary to use a highly
structured methodology to facilitate the replication of the work done and
therefore guarantee its reliability (Gill and Johnson 2010). Another
significant aspect about deductive approach is the operationalization of
the concepts to measure facts, issue that will be discussed later in this
same chapter.
3.2 Methodology and Methods
3.2.1 Quantitative Research
A mono quantitative method of research has been chosen for the present
study. As its name suggests, quantitative research examines data that
has been measured numerically and analysed using statistical techniques
in a way that the relationship between two or more variables can be
perceived (Saunders et al. 2012).
Quantitative research is generally associated with positivism philosophy
and deductive approach, emphasizing the fact that using data to test
theory is the focus (Saunders et al. 2012). Effectively, quantitative
research is believed to be the accurate way of describing the type of
study that is intended to execute to produce the present piece of work.
3.2.1.1 Arguments supporting the use of a quantitative approach
Although experts such as Bryman and Bell (2006) suggest that a multiple
methods approach have been increasingly advocated within business and

management research, the decision of maintaining a single data collection
technique, referred as mono method, is considered to be sufficient.
Using a mono method allows using probability techniques that ensure the
generalizability of the significant findings (Saunders et al. 2012), which
helps the researcher to contribute to the academia with a general insight.
Mono method studies are believed to normally be a highly structured data
collection technique (Saunders et al. 2012), what is considered to make
possible to address the questions present research. In this way, the
examination of the relationship between variables such as purchase
decision, brand image, price, quality, and others, will lead to a general
trend analysed statistically and compared to theoretical issues.
3.2.2 Data Collection Strategy
Survey is the strategy chosen for collecting the data required for the
present study. It is usually associated with deductive research (Saunders
et al. 2012) and is defined as the collection of data on a number of units
and usually a single juncture in time (Bryman and Bell 2006). It is chosen
because it allows collecting a quantitative dataset systematically in
respect to a number of variables, which are then examined to distinguish
patterns of association (Bryman and Bell 2006). For the present study, a
survey will help to achieve the research objectives by identifying issues
such as which of the factors theories suggest that customers consider
during their buying decision process are taken into account by coffee
customers, among others.
Most surveys involve the use of a questionnaire, and the same can be
administrated in three main ways: self-completion, face-to-face interview,
or telephone interview (Robson 2002). The present research will use a
self-completion questionnaire, which makes the distribution easier and
wider, permitting to collect of a large database (Robson 2002). A number
of alternatives will be given to respondents as well as the instruction of

choosing the answer from them, strategies that make the type of
questions close ended (Saunders et al 2012). The questionnaire will be
advertised on Internet inviting respondents to access via a hyperlink to fill
it in. The hyperlink might also be distributed and advertised in coffee
shops by the researcher to increase the amount of respondents. There will
not be a selection of respondents before the distribution of the
questionnaire due to the increased popularity of coffee shops; however, a
first question will determine whether an answered questionnaire will be
used or not. The same will assess the frequency of their visits to coffee
shops in the last 5 years. The expected quantity of valid questionnaires to
be used is 100.
3.3 Data Analysis Strategy
For the analysis of quantitative data, there is a range of treatments and
techniques used in research, from just organising the figures and records
to executing complex statistical analyses (Robson 2002). Because the
quantitative dataset will be large, since the sample size will be 100,
adopting an appropriate technique is essential for development of the
research analysis (Robson 2002). In this case, statistics will be applied in
order to identify and obtain information on each particular case of theory
raised, using SPSS Statistics software.
In conclusion, with an objectivism stance, a positivism philosophy and
deductive approach will be adopted, using a mono quantitative method as
the research design for the collecting and analysis of data. A survey will
be distributed as the data collection strategy, specifically a questionnaire.
Lastly, the sample size is expected to be 100 and SPSS Statistics the
software planned to use for the analysis of it.
4. Conclusions

Through the present project research, it is expected to examine the
extent to which brand image influence the customer buying decision
process in comparison to other factors such as price, quality, and location.
By collecting a relevant amount of data through questionnaires, it will be
possible to observe customers’ perspectives and evaluate their priorities,
using Starbucks Corporation as the target.
Finally, after the analysis of the findings, it will be possible to give
strategic recommendations for gaining a positive influence on customer
behaviour in order to achieve competitive advantage.
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ETHICS FORM
APPENDICES
Appendix 1: Gantt Chart
No
. Activity
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1 Meet Supervisor

2 Complete Literature Review
3 Research about Starbucks and
the
market
4 Design Questionnaire
5 Apply Questionnaire
6 Complete Methodology
7 Collect data and process it
using
SPSS
8 Present findings
9 Analyse findings
10 Complete Introduction
11 Write Conclusions and
Recommendations
12 Abstract, Acknowledgements,
others.
13 Revise References and
Appendices
14 Create List of Contents and
Figures
15 Print and bind Project
16 Hand in Project
17 Prepare Viva
18 Show Viva to supervisor
19 Practise Viva
20 Present Viva to examiners
Individual work
Possible meeting with
supervisor