Abstract This paper intends to present for review “Ethel’s Chocolate Lounges: Back to the Future? Chocolate Lounges Taste Sweet Success” (hereinafter, “Ethel’s”) case study and will address: (1) the type of consumer buying decision that describes the indulgence of Ethel’s; (2) factors

that cause a consumer to visit and buy at Ethel’s; (3) justify the factor the writer thinks

motivates a consumer most; and (4) assess what the Ethel’s experience needs to appeal to

most. Ethel’s Chocolate Lounges The chocolate house dates back to seventeenth-century London, when members of society’s elite would gather in luxurious surroundings to relax and sip hot chocolate. Later, Europeans expanded on that idea and developed solid chocolate treats that sold in upscale boutiques. Lacking the resources and economy of established continental, bootstrapping American settlers pioneered the development of cheaper chocolate bars for the masses. Centuries have passed, however, and the American palate has tired of the taste of mass- produced chocolate. The U.S. chocolate industry has experienced growth of less than 3 percent since the turn of the millennium, and the lack of industry innovation has left a bad taste in chocolate purveyors’ mouths, too. Enter Ethel’s Chocolate Lounges, named in honor of the matriarch of the Mars family, who founded the candy company with her husband Frank in 1911. Ethel M is owned by Mars Incorporated and was named after the mother of Forrest Mars. Mars opened Ethel’s chocolate lounges in the Lincoln Park neighborhood of Chicago in April 2005. When buying products, particularly new, consumers generally follow the consumer decision- making process. Below is a diagram showing the process of decision-making. Describe the type of consumer buying decision that best describes the choice to indulge at Ethel’s. The type of consumer buying decision that best describes the choice to indulge at Ethel’s
Chocolate Lounge is limited decision making. This type of decision making requires low level involvement. There are five factors that determine the level of involvement. The first is previous experience with the product. Most consumers have some previous experience with brands of chocolate; brands such as Godiva and Hershey. Ethel’s menu features a description of the chocolate’s content in case the consumer is unfamiliar with a certain choice. The second factor is consumer interest. The consumer may have a genuine interest in chocolate or the relaxing atmosphere that Ethel’s offer. The third factor is perceived risk of negative consequences. The prices of the products offered at Ethel’s may negatively influence the consumer. The fourth factor is situation. The consumer may choose to indulge at Ethel’s because they have guest in town or want to impress someone with the upscale modern surroundings at Ethel’s. The last factor is social visibility. The ability to interact with others, being pampered in a luxurious lounge, and having your favorite chocolates served on a silver platter. I chose limited decision making because the consumer probably has some knowledge of what to expect at Ethel’s.
Discuss the factors that influence a consumer to spend money and time at Ethel’s.
There are four factors that would influence a consumer to spend money and time at Ethel’s. The four factors are social, cultural, individual, and psychological. The social factor can be described as having a hip and classy atmosphere to chitchat, Ethel’s provides this feel. The cultural factor could describe what you value or a social class – enjoying chocolate in a plush lounge. The individual factor consists of gender, age, personality, lifestyle, etc. According to the case study,
Joan, President of Chocolate Marketing claims that, for women, enjoying chocolate in a luxurious lounge is like taking a candle lit bubble bath. And the last, the psychological factor is your perception, motivation, learning, beliefs, and attitude. This factor would definitely influence the consumer to spend their hard earned money. Justify which factor you think will motivate a consumer the most The central idea behind marketing is the idea that a firm or other entity will create something of value to one or more customers who, in turn, are willing to pay enough to make the venture worthwhile considering opportunity costs. The factors that influence a consumer to spend money and time at Ethel’s café can include cultural, social, and psychological factors. The one factor that I believe will motivate a consumer the most is the social interaction and the perception that the pampering of oneself is a much deserved right. Customers visited Ethel’s have a drink, play some cards, talk politics along with purchasing their product. The upscale environment and comfortable surrounds influences the consumer to make purchases to expand upon the entire experience. The need to socialize and adhere to the increased social visibility also heightens the social risk, but Ethel’s has marketed that this can be accomplished within an affordable price
. This assurance seems to reduce the risk while at the same time rewarding the consumer with the total experience of socialization and pampering.
Determine what needs the Ethel's experience appeals to most. Explain your reasoning According to Maslow, people seek to meet their essential life needs first, then they move up to the next level of the hierarchy to fulfill desires at a more abstract level. Marketing shows customers how products and services can meet their needs, so Maslow's hierarchy offers a useful framework for developing the marketing strategy. For Ethel’s Chocolate Lounges, the marketing focused on the social aspect of the do it for yourself concept because you deserve it. Being in the “in crowd” as chocolate is the new black concept strongly suggests that you can be hip by being a part of the Ethel’s experience. This speaks directly to the fulfillment of the social need or the sense of belonging

Reference

Chapter 6 Case Study: “Ethel’s Chocolate Lounges

http://www.chocolateatlas.com/ethels_chocolate_lounge/ethels_chocolate_lounge.htm

http://en.wikipedia.org/wiki/Ethel_M_Chocolates