An analysis of Chinese consumer decisions and motivation for choosing starbucks and luckin coffee brands in Kunming, China

Abstract

China has a long history in tea drinking culture, but now an increasing number of people begin to enjoy drinking coffee. There are prevalent coffee brands, both foreign and local brands, emerging in China. Amongst the famous brands are Starbucks, the foreign coffee brand from the United States, and Luckin Coffee, which is the local brand from China. The main purpose of this study is to study the attractive factors and motivation why Chinese consumers visit these two brands. By doing so, the study explores the similarities and differences of Chinese customers' consumption behavior when choosing Starbucks and Luckin Coffee brands. Through the literature on consumer purchase decision-making behavior, push and pull factors, SOR theory and previous research on coffee brands, these concepts can help the study develop a deeper understanding on the motivation factors and consumer decision making of Starbucks and Luckin Coffee. This study establishes an explanatory framework based on Stimulus–Organism–Response (SOR) theory, mainly to study the factors that stimulate people's psychological activities that lead to their decision making of choosing these two coffee brands. The qualitative research method will be employed using semi-structured interview technique, and target samples will be coffee drinkers who go to Starbucks or Luckin Coffee in Kunming. The results of this study will provide a better understanding on reasons why the Chinese consumers choose Starbucks and Luckin Coffee and allow more insights into consumers' purchase decision-making behavior when they purchase coffee from these two brands. IMPLICATION OF THE THESIS: This thesis shows that SOR model can help coffee shops explore customers' consumption behavior more easily and directly, understand the external factors that can attract them, and understand their internal psychological factors at the same time. Once the coffee shop has mastered this information, it can formulate marketing strategies to guide consumers to think, so as to affect their consumption decisions. This study shows how to use SOR model to study consumption behavior of coffee shops. First, explore the external attraction factors that stimulate consumers to choose this coffee brand, and then the external attraction factors stimulate consumers to produce complex psychological activities and start to make decisions; during this process, the internal driving factors of customers will urge them to make decisions faster. Finally, as a response, customers will choose this coffee shop brand.