The Effect of Social Media on Consumer Choice: Starbucks Strategies

This report investigates the impact of social media on consumer decision-making, particularly within the context of Starbucks. It explores how social media platforms influence consumer choices, brand perception, and purchasing behavior. The research includes a literature review analyzing various perspectives on the evolving consumer behavior in the digital age, a survey of twenty individuals to understand their online purchasing habits related to Starbucks, and interviews with two managers to gain insights into the company's social media marketing strategies. The findings aim to provide recommendations for Starbucks to enhance its social media marketing efforts and improve consumer engagement, ultimately leading to more informed consumer decisions. The report also covers the characteristics of social media, such as openness, community, connectivity and participation, and how these attributes affect consumer behavior. The research uses both primary and secondary data, including qualitative data gathered from interviews and secondary data from books and journals.

DOES SOCIAL MEDIA AFFECT CONSUMER CHOICE?
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Executive Summary
The main motive of the research is how consumer decision-making process has
changed in the Digital age, mainly in the field of social media. The information available
to us goes on increasing day by day resulting in exposure and presenting different
features of data via Social Web. In today’s market social media usage has become part
of daily routine to access different platforms either for conducting business or for
purchasing. The research contains literature review to get the analysis of various critics
on how consumer behavior has changed immensely. In order to get the best outcomes
and recommendations in terms of Starbucks, survey of twenty people has been done to
go through the changes in their behavior on online purchasing in recent years. Interview
of two managers has also been taken to understand the values that companies do for
social media marketing which ultimately leads to proper decision-making of the
consumers.
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Table of Contents
Task 1................................................................................................................................4
1.1 Identifying factors contributing to process of research project selection....................4
1.2 Undertaking critical review of key reference of research topic....................................6
Aims, Objectives and Research Questions.......................................................................7
Task 2................................................................................................................................9
2.1 Matching resources effectively to research questions................................................9
2.2 Undertaking proposed research investigation...........................................................15
2.3 Recording and collating required data.......................................................................16
Task 3..............................................................................................................................16
3.1 Using appropriate research evaluation techniques...................................................16
3.2 Interpreting and analyzing results.............................................................................17
3.3 Making recommendations as well as justifying further research...............................23
Task 4..............................................................................................................................24
4.1 Using format and appropriate media for presenting outcomes of research..............24
Reference List..................................................................................................................25
Appendices......................................................................................................................28
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Task 1
1.1 Identifying factors contributing to process of research project
selection
According to Hollensen and Raman, (2014, p.17), in today’s world, social media
becomes a part and parcel of an individual’s life. Different social media platforms like,
Twitter, Facebook, on the other hand, Instagram and LinkedIn includes a number of
users which keeps on growing daily. Overall it is found that more than millions of people
are actively communicating through social media. Marketers are being attracted towards
the growing rate of users and have recognized that social media marketing is a major
part of helping marketing interactive techniques. Also, the companies helped via social
media marketing in order to communicate with the customers for decision-making
purposes. This collaboration with the marketers helps them to identify and understand
the needs of the customers and their choices regarding particular product or service.
The main business factors of social media towards consumers are that it acknowledges
in estimating products, making endorsement to the contacts, and sharing any of the
investments through social media platform. Online marketing imposes communication
through these social podiums which create an impact on consumer choices and
marketing strategies. Customer socialization theory anticipates that the increase rate of
communication among patrons not only affect cognitive attitudes but also the intuitive
and behavioral aspects. Advertising on social media folio has taken a new chapter of
consumer’s behavior. The consumers spending more time in online window shopping
tend to make purchases or start business on social media because they are more active
and communicate with people largely. Consumer’s choices or decision making has a
huge impact on the recommendations made by their connections on social media. It
helps in brand awareness, buying attitudes and in advertising mediums. The more
generous responses a product or service receives, the more rates of consumer
purchasing increases. Therefore, it shows that most of the top brands and their services
views it and lead to social media marketing for its brand image to grow.
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Starbucks is considered as the largest coffeehouse chains in the world, and definitely
the largest in the United Kingdom. It was established in the year 1998 and has over 539
stores alone in UK and more than 21,366 stores across the globe. Starbucks
successfully entered the European market because of its number of Seattle Coffee
Company in the UK (Starbucks Coffee Company, 2017). Both the companies shared a
familiar culture which focuses on the assurance to customer-built coffee. It has same
company values with a bonding of respect for each other for the consumers and the
environment.
Starbucks buys and roasts high-quality whole bean coffees and its essence of having a
genuine service makes the customers attracted towards the company. These
coffeehouses have become a flare for all coffee lovers in the entire world because they
are getting an inviting atmosphere and a superb cup of mouth watering richly brewed
coffee. In order to please the taste buds, they offer varieties of premium teas, pastries,
and other delicious treats. The ambiance filled with a music which is chosen for its
artistic decoration and the appeal. The environment welcomes people to chat, meet up
or even sometimes to work. As a part of daily routine, it stands up as a neighborhood
hanging out place which makes it as proud reward to be so close to the heart of the
customers. Everything the company takes as an initiative to do makes it sure to do for
the benefits of its patrons, i.e., from the commitment of serving fine quality of coffee to
the way engaging with the communities for developing the business in a responsible
way. It has also participated in social media platform to reach out to its consumers for
availing the offers and discounts and receiving high rates of reviews from the. The
advertisements they put on their Facebook pages helps them to rise in their business
prospect (Starbucks Coffee Company, 2017).
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Figure 1: Logo of Starbucks
(Source: Starbucks Coffee Company, 2017)
1.2 Undertaking critical review of key reference of research topic
As stated by Ashley and Tuten, (2015, p.16), the usage of social media has reached a
high growth level where the consumers in recent years, prefer to purchase products and
services and also to conduct business through social media platforms. Consumers are
getting influenced while buying products because of variety of options available in social
media and the comments and reviews of other users about the particular product or
services. In order to analyze whether social media really affects in consumer’s choices
of purchasing, it is needed to look after and research the amount of time they spent on
the internet and how they get influenced by other users. On company’s pages on
Facebook, Instagram, Twitter, etc it gets to see the pictures, comments, and reviews of
the people visited the place or purchased items from that particular websites. Generally,
the consumers planning to visit or purchase go through the opinions of other customers
and judge it as the rates the particular site obtained. So, it can be said that social media
affects in customer’s decision making as it has opened a wide platform where people
can post pictures, comment, and review as per their opinions.
As mentioned by Cader and Tenaiji, (2013, p.546), the onset of social media has
emerged a new landscape that creates a new grid of personal connections. Business
enterprises see abundant opportunities to extent its platform towards the mass and are
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eager to step into the trend, whereas customers are laid behind to the core of the
business world for social media. This research will give an explanation on the basis of
how people are selecting, deciding and processing the information before buying. The
findings stated that individuals perform a productive role on searching data and
materials on social media rather than on mass media, which includes the strategies of
both objective and subjective methods while seeking. It is to find out all the changes that
social media has brought to the consumer's way of purchasing and in their choice
making process. The approachability and the clarity of gathering information offered by
social media to its customers have indicated trough this research topic. Consumers
today can access to all relevant information not only in a wide range but also at a high
speed. Social media thus, play a powerful role in collecting ideas, values, and data
including the relevant information about the offers and discounts.
Aims, Objectives and Research Questions
Aim:
The major aim of this research project is to critically examine the affects of social media
on the decision-making of the consumers.
Objectives:
 To critically examine the impact of social media on the patrons of Starbucks
 To understand the effect of social media on decision making
 To evaluate the impact of customer’s decision making on overall business of
Starbucks
 To recommend some ways by which Starbucks can improve their strategies of
social media marketing.
Research Questions:
 How social media can influence customers of Starbucks?
 What are the effects of social media on customer’s decision making?
 How does social media can influence the overall business of Starbucks?
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 What are the ways by which Starbucks can improve their strategies of social
media marketing?
Methodology:
The researcher will examine this current research by analyzing the influences that social
media created on the purchasers and evaluating the impact of customer’s choice of
making decisions on the entire business of Starbucks. The learner for the current
research will gather both primary and secondary types of data. Primary qualitative data
will be gathered through the interview session with the social media marketing
executives of Starbucks, while the secondary qualitative data will be noted from the
selective books and journals. The researcher had also done a critical review on the
basis of the given topic.
Research
actions
Week
1
Week
2
Week
3
Week
4-5
Week
6-7
Week
8
Week
9-10
Week
11
Week
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Choosing a
relevant
topic

Structure
designing of
the
research
 
Analyzing
relevant
information

Selection of
proper
research
method and
data

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gathering
method
Secondary
types of
data
Collection

Primary
types of
data
Collection

Literature
review

Analyzing
all types of
primary
data

Research
paper
suppression
 
Figure 2: Gantt Chart
(Source: Created by the Author)
Task 2
2.1 Matching resources effectively to research questions
Characteristics of Social Media
Social media is a method of reaching large base of customers with the use of internet.
People all over the world have been integrated into one zone using this media. Social
media has become an important part of life of people as well as business sectors.
Business ventures use this media efficiently for marketing their products. This helps in
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reaching large customer base of world. Social media comprises of characteristics like
openness, community, connectivity and participation. All these attributes assist in
enhancing speed, longevity, and interactivity between several people. Fan and Gordon
(2014, p.75) stated that community help in making virtual as well as online communities
for better work conduction. Huge difference lies between social media network and also
in other communities. Connectivity has been greatly improved using this media because
number of people can be connected in a chain using this social media.
Different resources are being integrated using this connectivity. Social media network is
much advanced than that of other forms of media. Trust worthy relation is encouraged
using this form of services. Online social media is very rapid in its work. Companies
when market their products using this field, try to use latest technologies. This help in
gaining more opinions thereby, enhancing business processes suitably. Moreover,
decisions of customers have been reformed greatly because this media encourages
participation as well sharing information. Using social media, participation of customers
can be encouraged more thereby, improving business processes greatly.
As a result, social media attributes help in bringing customers into one frame. Intention
of purchasing of customers develops more if a product is more common in social media.
Research shows that buying decision of buyers is more complex, which is guided by
social media characteristics. Scott (2015, p.998) demonstrated that planning of
purchasing of products comes from behavioral nature of buyers. Prediction of users
regarding buying of particular product is subjected to advertisement of goods in social
media. When people find some changes in composition of products, they show the urge
of buying that product more. In this way, business profit, as well as people’s choices, is
reformed by social media by its effects.
Importance of Social Media on buying decisions of customers:
Social media can influence purchasing behavior of customers in a large aspect. Dingus
et al. (2016, p.175) claimed that Brand value, quality of products and price of products
can adversely affect choices of customers. Marketers try to manipulate purchaser’s
decisions by advertising their products. Effective advertisements are displayed by every
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business sector in order to move customers towards their products or services. Social
media is an important mode of communication between customers and enterprises.
Relationship between customer’s choices and social media directly impacts upon
attitudes of advertisements and intentions of purchasing of customers. Choices of
customers vary in large amount when social media comes into action. It is necessary
that effective modes of communication need to be used by business ventures for
inclining more customers towards themselves.
Jin et al. (2014, p.75) mentioned that social media does not only advertise products but
forms a strong source of communication between ventures and users. In order to
search or enquire about new products or services, social media forms a reliable source
for people. Reactions, as well as responses of purchasers, are formulated when they
use such media for knowing about new products. Buyers can reach company suitably if
they use social media as a base for communication. Recent trends of business show
that people are buying products in online mode. Buying nature of customers is changing
according to the trend of business. Since globalization has reached a great height,
companies are trying to match up with such level of business trend. Rapp et al. (2013,
p.550) commented that companies are focusing on marketing process greatly thereby,
using platform of social media more. Customers are more active on social media sites.
That is why; huge buyers are able to incline towards such products of different business
enterprises. When customers are engaged in decision-making process, each aspect
might be a reason behind affecting choices of customers. Motives of purchasers in
indulging them in social media lead to gain an insight regarding buying activities of
customers. Using social media, buyers can be divided into two separate groups namely,
rational group and emotional groups. As a result, social media not only affects decision
regarding costly items but also impacts buying of inexpensive items. Whiting and
Williams (2013, p.362) argued that social media helps in broadcasting items that are
launched recently. In addition to that, vision of purchasers is also broadened using such
marketing practices. That is why; expectations, as well as demand of customers,
increase in massive amount from different enterprises. Those companies that make
changes in their products accordingly, they are welcomed by customers. Social media
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helps in advertising such products, which indirectly helps in motivating large base of
customers.
Theories related to influencing customers:
Conversion theory and information manipulation theory help in influencing customers’
decisions greatly by social media. As stated by Kannan (2015, p.40), conversion theory
states where involvement of minority is seen, other people get converted towards
majority customers. That is why; social media need to move more customers towards
their products so that impact can be left upon different customers. Majority of people are
most susceptible people, who like a product or service of an organisation. It becomes
easier for any organisation to motivate disinterested people towards their products by
providing examples of majority customers. It is essential that buyers remain satisfied
after their purchasing of products or using products. Social media need to use effective
advertising policies so that people can get attracted easily. This will help in gaining
immense profit in business. However, impact of social media upon customers’ choices
is great.
Schivinski and Dabrowski (2016, p.190) argued that there lies variety of customers in
market, whose purchasing nature is different from others. However, companies use this
media in such a manner that every customer can pay attention towards their products at
least once. Majority people, whose voices are confident, assist in converting rejection of
numerous users into accepting of products. As a result, social media is very effective in
its field of motivating customers. Information manipulation theory helps in segmenting
products or services into four parts, namely, quantity, quality, relation and manner
(Hollebeek et al. 2014, p.150). All these attributes lead to determine quality and quantity
of products suitably. When customers judge products’ attributes, they decide whether
they need to buy that product or not. Social media provides guidance to people
regarding quality and quantity of products. This makes them more determine to buy the
products or neglect it. Relation and manner are other aspects that are expressed by
social media regarding any product.
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