(TIỂU LUẬN) FINAL EXAMINATION CONSUMER BEHAVIOR analyse the impact of culture on consumer behavior of starbuck in vietnam

VIETNAM NATIONAL UNIVERSITY
UNIVERSITY OF ECONOMICS AND BUSINESS
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FINAL EXAMINATION
CONSUMER BEHAVIOR
Instructors:

Dr. Luyen Van Thuy
Dr. Dao Cam Thuy
MBA. Hoang Trong Truong

Student:

Nguyen Ngoc Anh

Student ID:
Class:

18050661
QH2018E- QTKD CLC 3

Ha Noi, 12/2021


Table of Contents
1. Introduction .......................................................................................................... 2
1.1. Short profile of that product ........................................................................ 2
1.3. Aims: Analyze the impact of culture on consumer behavior .................... 4

2. Analyse the impact of culture on consumer behavior of Starbuck in Vietnam
.................................................................................................................................... 4
2.1. Definition of culture and related factors ..................................................... 4
2.2. Definition of consumer behaviour................................................................ 6
2.3. Culture coffee of Vietnam ............................................................................. 7
2.4. Consumer behaviour in purchasing that product in that country ........... 9
2.5. Analyse the impact of culture on consumer behaviour in that country . 10
2.5.1. The impact of culture on coffee consummer behavior in Vietnam .. 10
2.5.2. The influence of culture on Starbucks Espresso coffee consumer
behavior in Vietnam ....................................................................................... 12
3. Conclusion ........................................................................................................... 13
References ............................................................................................................... 15

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Topic: Choose one product in one country to analyze the impact of culture on
consumer behavior.
1. Introduction
1.1. Short profile of that product
Starbucks is a famous coffee brand in the world today. Starbucks coffee
company was founded on March 30, 1971 and is headquartered in Seattle,
Washington, USA. Currently, the company is present in 49 countries with 17,800
stores.

Starbuck’s logo

Starbucks has declared their mission to be the third place customers visit after
the company and their families. They emphasize to all customers that Starbucks is
not just a coffee shop, but it is also a place to relax, work and study, or friends can

meet and talk, that mission has been achieved adhere to more than 4 decades.
Starbucks entered Vietnam in 2013, the first store in Ho Chi Minh City. When
had just enteried the Vietnamese market, the company has caused a fever when it
brings a new and American-style coffee flavor. As of 2018, Starbucks has opened 45
stores in Ho Chi Minh City and Hanoi, bringing in more than VND 593 billion in

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revenue. The brand is also ranked 3rd in the list of "The best-selling coffee chains in
the Vietnamese market by revenue" and is the foreign coffee chain that reaches the
highest position in this list.
Starbucks' main products are coffee and tea. In particular, Espresso is the main
product in Starbucks' most popular coffee beverage products. It's a special blend of
coffee beans from Latin America and Asia/Pacific, dark roasted to create intense
sweetness and caramel flavour. Thanks to this density, the coffee has a rich taste that
does not dissolve into the milk, making it the perfect foundation for making a latte or
cappuccino at home.
1.2. Target consumer and target market
Starbucks' main approach to gain greater market share in the industry is by
paying close attention to its market segments. It not only uses demographic
segmentation in terms of gender, income, age, and ethnic background but also
employs geographic segmentation drawing upon the country or region of the world
and its market size in that specific region and climate.
The demographic segmentation by Starbucks is between 25 and 40 years of age
with high incomes, the second target group is 18 to 24 years of age and belongs to
richer families. Most Starbucks customers belong to Generation Y which was born
between 1977 and 2000. Psychographic segmentation shows that customers belong
to the upper-middle class and well-off customers who were educated.
Starbuck's target market is from middle to high-income office workers with a

desire to purchase premium products. Schultz wanted to make Starbucks the place
where their customers could relax, gather and interact with one another.
Starbucks’s marketing strategies are situated between mass marketing and
segment marketing; they are targeting a broader public; however, soon they realized
growth opportunities in the industry and set strategies to cater to a wider array of the
market segment. Starbucks has also segmented its markets by demographically and
geographically selecting the store location with educated and coffee lovers.

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1.3. Aims: Analyze the impact of culture on consumer behavior
Since different cultures have different values, consumers have different buying
habits. Marketing strategies should reflect the culture that is being targeted. The
strategy should show the product or service as reinforcing the beliefs, values and
customs of the targeted culture. Failing to do so can result in lost sales and
opportunities.
For marketers anywhere in the world, it is essential to develop a strong
understanding of the local culture and its accompanying beliefs, values, and customs.
Culture is how people make sense of their society, its institutions, and social order.
Culture frames how and what people communicate, how they express what is proper
and improper, what is desirable and detestable. Without an understanding of culture,
marketers are not really even speaking the right language to the consumers they want
to target. Even if the words, grammar, and pronunciation are correct, the meaning
will be off.
2. Analyse the impact of culture on consumer behavior of Starbuck in Vietnam
2.1. Definition of culture and related factors
Culture has been defined in many different ways. Culture is a society’s
personality. It includes both abstract ideas, such as values and ethics, and material
objects and services, such as the automobiles, clothing, food, art, and sports a society

produces. Put another way, it’s the accumulation of shared meanings, rituals, norms,
and traditions among the members of an organization or society.
Culture is not static. It evolves continually as it synthesizes old ideas with new
ones. A cultural system consists of these functional areas:
• Ecology: The way a system adapts to its habitat. The technology a culture uses
to obtain and distribute resources shapes its ecology. The Japanese, for example,
greatly value products that make efficient use of space because of the cramped •
conditions in their urban centers.

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• Social structure: The way people maintain an orderly social life. This includes
the domestic and political groups that dominate the culture (e.g., the nuclear family
versus the extended family; representative government versus dictatorship).
• Ideology: The mental characteristics of a people and the way they relate to
their environment and social groups. They share a com- mon worldview that includes
ideas about principles of order and fairness. They also share an ethos, or a set of moral
and aesthetic principles. For example, when they go to the beach many Muslim
women wear “burkinis” that cover every- thing—the face, hands, and feet—to
conform to Islamic standards of modesty. In an effort to protect its status as a secular
society, France banned women from wearing the garments. The ban was eventually
overturned, but the conflict con- tinues and other Western countries are considering
similar rules.
The study of culture is the study of all aspects of society. It is the language,
knowledge, laws, and customs that give society its distinctive character and
personality. In the context of consumer behavior, culture is defined as the sum total
of learned beliefs, values, and customs that serve to regulate the consumer behavior
of members of a particular society. Beliefs and values are guides for consumer
behavior; customs are unusual and accepted ways of behaving.

The impact of culture is so natural and ingrained that its influence on behavior
is rarely noted. Yet, culture offers order, direction, and guidance to members of
society in all phases of human problem-solving.
Culture is dynamic, and gradually and continually evolves to meet the needs of
society. Culture is learned as part of social experience. Children acquire from their
environment a set of beliefs, values, and customs that constitute culture (i.e., they are
encultured). These are acquired through formal learning, informal learning, and
technical learning. Advertising enhances formal learning by reinforcing desired
modes of behavior and expectations; it enhances informal learning by providing
models for behavior.
Culture is communicated to members of the society through a common
language and through commonly shared symbols. Because the human mind has the

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ability to absorb and process symbolic communication, marketers can successfully
promote both tangible and intangible products and product concepts to consumers
through mass media.
All the elements of the marketing mix serve to communicate symbolically with
the audience. Products project an image of their own; so does promotion. Price and
retail outlets symbolically convey images concerning the quality of the product.
A wide range of measurement techniques is used to study culture. The range
includes projective techniques, attitude measurement methods, field observation,
participant observation, content analysis, and value measurement survey techniques.
2.2. Definition of consumer behaviour
Consumer behavior is the study of the processes involved when individuals or
groups select, purchase, use, or dispose of products, services, ideas, or experi- ences
to satisfy needs and desires. A consumer may purchase, use, and dispose of a product,
but different (the objective aspects of a population, such as age and sex) and

psychographics

(psychological

and

lifestyle

characteristics).

Emerging

developments, such as the new emphasis on relationship marketing and the practice
of database marketing, mean that marketers are much more attuned to the wants and
needs of different consumer groups.
Successful companies understand that needs are a moving target. No
organization—no matter how renowned for its marketing prowess—can afford to rest
on its laurels. Everyone needs to keep innovating to stay ahead of changing customers
and the marketplace. BMW is a great example. No one (not even rivals like Audi or
Mercedes-Benz) would argue that the German automaker knows how to make a good
car (although they may not agree with the company’s claim to be “the ultimate driving
machine”). Still, BMW’s engineers and designers know they have to understand how
drivers’ needs will change in the future—even those loyal owners who love the cars
they own today. The company is highly sensitive to such key trends as:
• A desire for environmentally friendly products

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• Increasingly congested roadways and the movement by some cities such as

London and New York to impose fees on vehicles in central areas
• New business models that encourage consumers to rent products only while
they need them rather than buying them outright
BMW’s response: The company committed more than $1 billion to develop
electric BMWi models such as its new i3 commuter car and i8 sports car. These
futuristic-looking vehicles are largely made from lightweight carbon fiber to
maximize the distance they can go between battery charges, and 25 percent of the
interior plastic comes from recycled or renewable raw materials. In addition, BMW
started a car-sharing service (now in Portland, Seattle, and Brooklyn) it calls
DriveNow: Drivers use a computer chip in their licenses to hire a car and leave it
wherever they are when they no longer need it. That’s forward-thinking.
2.3. Culture coffee of Vietnam
Vietnamese coffee culture has formed and developed with its own unique
features. In the 1880s, the French brought coffee to Vietnam. Since then began to
cultivate to serve the aristocracy. It was not until the 1920s that it was widely planted
in Kon Tum and expanded to suitable geographical areas. Since then, coffee has been
a specialty. It is also the main source of income for many generations of families.
Over the years, along with the development of society. Coffee is still present in the
lives of Vietnamese people, although there are also significant self-transformation
steps.
The strong coffee flavor has become familiar in the daily life of Vietnamese
people. The sophistication of Vietnamese coffee is reflected in the unique culture and
style of coffee enjoyment of Vietnamese people.
Typical street coffee culture with Vietnamese soul
First, bearing a bold impression is "street coffee culture". This is the most
popular coffee but the most "followers". Image of a cup of black coffee or milk coffee
(the Northern people call it black and brown). Served by a hot teapot with a few
roadside chairs. It is a familiar image in the subconscious to start each morning.

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“Let's go for coffee!” The catchphrase of today's coffee culture
"The betel nut is the beginning of the story" of the old grandparents was
gradually replaced by "Let's drink coffee". It is a drink, a cafe is a place for couples
to talk. The perfect place for friends to gather and chat. The starting place for business
cooperation. Or even alone to reminisce and reflect on life.
Phin - Proud symbol of Vietnamese coffee culture
Coffee phin is considered the most favorite drink of Vietnamese people. The
feeling of sitting and waiting for each drop of coffee to fall is really interesting. It is
even more interesting to sip its fruits, be it a cup of hot black coffee, can add a little
milk, drink hot or drink ice depending on each person's preference.
Regional characteristics also have their own coffee culture
People can guess the personality and culture of each region through the way
coffee is made and each person's drinking preferences. For example, Saigon people
like iced black coffee, refreshing iced milk coffee. Or "silver faint" is gentle and can
be enjoyed at any hour of the day. While people in the Central region of Hanoi, prefer
a completely different taste with a bolder taste. They prefer to drink hot rather than
drink cold. And often sip early in the morning to start a new day.
Vietnamese people have their own style of enjoying coffee, they do not consider
coffee as a quick drink with anti-drowsy effects like Americans, but enjoy coffee as
a culture: sipping and contemplating. Sitting by a cup of coffee, chatting with each
other, taking small sips while reading newspapers, listening to music and then
thinking about life, people, ...
The coffee culture of the Vietnamese in recent years is a culture of enjoyment
in both taste and sight. People can sit for hours not only to enjoy a cup of coffee but
also to enjoy the space of the shop. The price of a cup of coffee or any drink therefore
also includes the cost of ingredients and service costs.

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2.4. Consumer behaviour in purchasing that product in that country
With a period of 7 years of existence in Vietnam, it is possible to see the
consumption behavior of customers for Espresso coffee products in general and
Starbucks in particular as follows:
1. Customers came out of curiosity with a very famous coffee brand from the
US. This is understandable for products arriving in a new country. They come
because of the famous brand name, because of the glass with the Siren symbol and
because of the luxurious and high-class space.
2. Customers follow trends. Like many others, many customers also want to
experience this luxury coffee company once. It is a fact that the price of Starbucks
coffee is among the most expensive coffee brands in Vietnam. Specifically, the price
of 1 cup of Espresso coffee ranges from 80,000 to 100,000 VND. Meanwhile, Phuc
Long's coffee price is praised by many people for its quality at only 30,000 - 40,000
VND. Drink prices in Highlands are about 29,000 VND – 49,000 VND (according to
cafebiz.vn)
3. Check in Starbucks. Because it is a luxury coffee brand, there are also some
customers who choose Starbucks as a place to take virtual photos. That makes them
feel more upscale, rich and luxurious when using the products here. This is how they
make other people impressed and admire them.
4. A small part for work and study. Customers who come to Starbucks and use
Espresso are mainly office workers and people with middle-high income. Main
activities are meeting partners, working or studying. However, this group is quite
small in the population in Vietnam.
5. Few customers return to Starbucks for the taste of coffee. Also, many people
don't go to Starbucks for coffee. For those who only come to experience, to "checkin", they usually only come once and then go. Customers who come to Starbucks
because they are really passionate about their drink make up a very small part of those
who come to the store. The number of loyal customers is not large, Starbucks does
not have the courage to expand the map of stores spanning Vietnam.

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2.5. Analyse the impact of culture on consumer behaviour in that country
2.5.1. The impact of culture on coffee consummer behavior in Vietnam
Vietnam is a country with many diverse and rich cultures, which has influenced
the habits and consumption behavior of Vietnamese people. All things like
consumption behavior, living behavior, every need, etc. It all starts with culture.
Culture determines the customs that people follow to satisfy their needs. It is clear
that consumer behavior is diverse and cultural customs also influence how people
cook their meals.
Cultural factors play an increasingly important role in business and production.
The coffee culture of the Vietnamese people has become popular and become a
culinary beauty in Vietnam. Producers must consider the factors affecting the
consumption behavior of Vietnamese people, especially culture, to come up with
appropriate marketing strategies for their coffee products.
Coffee is a product of the culinary field and is used in many different forms
according to each region in the territory of Vietnam from North to South. That
difference stems from environmental factors such as culture, politics, society... that
affect the consumer's purchasing decision process for coffee products. As with any
consumer behavior of a product, the buying decision process also includes the
following basic stages:
• Need awareness;
• Look for information;
• Evaluate;
• Decide and respond.
1. Occurrence of demand
Cultures always seek to preserve their cultural identity but are always
influenced by other cultures. The trend of economic integration and absorption of

advanced cultural values is increasing. A stylish, modern active lifestyle is also a
reason forming consumer demand, coffee. In addition to looking for added value as
mentioned, people with new lifestyles drink coffee to find the value that is the

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stimulating properties of coffee, they want to work more, be active more. For
Vietnamese people, the perception of themselves from others is very important.
Through the need recognition stage, people proceed to gather information about the
product and evaluate options to meet their needs.
2. Collecting information and evaluating options
Information about coffee or any other product to consumers is influenced by
cultural factors. Consumers can accept such information or rate its reliability as high
or low, both based on personal opinions and cultural norms and values where they
live and work. To satisfy their needs, either to drink to satisfy their thirst or to find
other values such as sobriety or expression of their lifestyle. People have many
choices. Information about products that are suitable for value-seeking needs, in
accordance with cultural values or not contrary to, taboo with Vietnamese culture will
be more easily accepted. The search for information and evaluation of coffee product
choices of consumers in Vietnam is strongly influenced by other culinary cultures.
That requires marketers' communication about coffee products to be appropriate.
3. Consumer responses.
In the process of exchanging information about coffee to find the values of their
needs, consumers can choose coffee or another beverage. In deciding to consume
coffee, Vietnamese people will decide how to enjoy, what type of coffee, where, and
also the choice of time to enjoy. In each choice, cultural factors play a role and have
a significant impact on consumer behavior. People can choose to drink coffee at the
shop or make their own at home, drink filter coffee or instant coffee, drink Trung
Nguyen brand coffee or nescafe, vinacafe.... For Vietnamese people, coffee is not a

daily drink in the house, they do not use coffee to receive guests like tea, coffee does
not show any cultural behavior. Therefore, the choice of coffee is to go to small shops
with quite typical Vietnamese styles. Maybe a simple coffee shop located on the
second and third floors in the old town. It could also be in an alley or on the sidewalk
across from a certain lake. Others, under the influence of traditional cultural values
and also new lifestyle cultures imported from the outside, their choice is polite coffee
shops that combine traditional and modern decoration. .

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2.5.2. The influence of culture on Starbucks Espresso coffee consumer behavior
in Vietnam
Despite being one of the most prominent and best-selling products in Starbucks'
coffee products, Espresso coffee has not yet met the needs and preferences of
Vietnamese consumers. Espresso is made from Arabica coffee beans with a relatively
low caffeine content of only 1.5%, which makes Vietnamese people feel unsatisfied
with the coffee taste they desire. Vietnamese coffee taste is famous for being stronger
and stronger than other countries. Vietnamese people are used to coffee made from
Robusta beans with caffeine content up to 2.7% higher than Arabica in Espresso. For
those who are familiar with domestic coffee products, Starbucks drinks are definitely
not "enough" for them. Vietnamese users need a "strong" drink to help them wake up
and maintain a long working day, and the big coffee chain can't meet this.
Sarah Grant, Assoc. of the University of California, commented: "I think the
decisive factor is the origin of Vietnamese coffee culture. Robusta coffee and iced
milk coffee have entered their subconscious every time they drink coffee. Human
psychology. it's going to be difficult to try something so new from what we've known
for a long time."
Besides, the price of 1 cup of Espresso is quite high, about 90-100 thousand
VND, nearly 5-7 times higher than a cup of street coffee. The price is so expensive

that many people think twice when they intend to drink Espresso or other Starbucks
products. With the same drink, users have many choices in other brands with much
cheaper prices. Besides, Vietnamese people don't drink coffee because of the brand,
they drink it because of the quality of the product, the menu is right, and the price is
affordable. Starbucks did not meet ⅔ of the above reasons, so it is inevitable not to
leave a mark in the hearts of users.
Americans - home to the world's largest coffee chain are used to drinks like latte
or cappuccino. In 2013, when entering Vietnam, Starbucks brought the same menu
from the country of flags to this Southeast Asian country. However, Starbucks forgot
that latte and cappuccino are not Vietnamese favorites. Egg coffee, milk coffee or
black coffee, coffee-flavored drinks are Vietnamese favorites. Vietnamese people

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need a drink with a lot of coffee, while Starbucks products have more milk. The
different menu does not meet the right needs, making Vietnamese people not
interested in this world's largest coffee chain.
Recognizing the influence of culture on consumer behavior, Starbucks has
changed its business strategy to attract more Vietnamese customers. For example, in
2016, Starbucks introduced an Iced Dolce Misto – which seems to be the closest thing
to an iced milkshake. As a barrier between Starbucks and customers when there is no
black coffee option, the addition of drinks such as Asian Dolce Latte or Iced Dolce
Misto will help Vietnamese customers be less shy when entering the store. In addition
to coffee, other food products, 100% of Starbucks products are made in Vietnam
because this is a daily consumer product.
It can be said that in the buying decision process of Vietnamese Starbuck
consumers, two aspects of traditional and modern culture, influence each other
throughout and intertwine in each stage of the buying decision process Starbuck
products as analyzed above. Based on that analysis, the marketer of Starbucks needs

to understand the culture of a region or territory where the Company's business takes
place as in Vietnam. Aim to identify consumer needs, based on the cultural
characteristics of that region and territory to determine the target market for products
and marketing measures appropriate to the socio-cultural context of that community.
These principles are not only principles for coffee products, but they are principles
drawn up for all types of products and services in general when Starbuck wants to
succeed in Vietnam.
3. Conclusion
It can be said that the influence of culture on individual behavior is very strong,
especially traditional cultural values, and people accept those conventions both
consciously and unconsciously. both logical arguments and written legitimacy within
"unwritten conventions". Cultural values play a major role in the identification of the
discovery of a certain type of need. But they can affect each stage of the consumer's
buying decision process: perception of information search needs, evaluation of
alternatives and purchasing decisions, post-purchase responses. In addition to the

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decisive influence on a certain type of consumer demand, culture remains an
environment for information about products to humans to be absorbed and filtered.
The process of effective marketing communication is when it is disseminated through
the expression of normative values in the culture. Thereby affecting consumption
trends in society, promoting trends, or preventing trends that go against the core or
slow down the acceptance of a certain type of product. In the process of integration
in all fields today, Vietnamese culture has received and changed in an advanced and
modern way while still bearing the national identity.
With the coffee culture of the Vietnamese consumers having existed for such a
long time, Starbucks needs to change its business strategy, menu and coffee recipe to
be able to suit the tastes, habits and tastes of Vietnamese people. Then the business

will develop better and attract Vietnamese customers to Starbucks. Finally, customers
when enjoying Espresso coffee or any other drink will be impressed and make them
come back with their loyalty to a product of a foreign brand but still taste good
familiar to Vietnamese.

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References
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of International Consumer Marketing, 6(2), pp.91-127.
4. Zadah Khan, S., 2018. Starbucks Market Segmentation and Targeting.
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Ijbmi.org.

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< />5. 2020. Văn hoá cà phê – “Hồn” Việt trong thưởng
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ph%C3%AA/espresso>

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