Ch. 6 - Consumer Decision Making

The Importance of Understanding Consumer's Behavior

The name Godiva doesn't need any recognition whatsoever and the consumers of today are well aware of the brand. The Godiva Gems platform was launched globally in September 2009. Gems are little Truffles, Caramels and solid Chocolates that are individually wrapped to enjoy anytime, anywhere. Godiva Gems are delivered in a Godiva-worthy way---quality chocolate, in vibrant packaging with colorful wrappers that have a "Touch of Gold" to remind consumers that it is the Godiva quality they know and love. Godiva Gems not only meet consumers' affordability and accessibility needs, (e.g., a $4.99 Stand Up Bag of Gems Truffles in Grocery Stores), but they also pioneered new behaviors for the brand. Therefore, by listening to their consumers demand and observing consumers' changing behavior, Godiva was able to make its brand more accessible and affordable globally. This decision to launch a more affordable and accessible line of chocolate was a bold move that would turn out to be the single biggest global launch in the history of the brand. By tapping into Universal behaviors like "sharing" and "casual gifting," Godiva offers much more vesatility than ever before. And most importantly, Godiva Gems makes the brand more relevant all year around and not just for special occasions or holidays anymore.

Types of Consumer Buying Decision and Consumer Involvement

Buying behavior is the decision processes and acts of people involved in buying and using products. The type of consumer buying decision that best describes the choice to indulge chocolate 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. At Godiva, most consumers have some previous experience with the brand. 
• The second factor is consumer interest. For consumers who may have a genuine interest in chocolate, will find a relaxing atmosphere with the variety of chocolates Godiva offers. 
• The third factor is perceived risk of negative consequences. The kind of prices and promotions as well as variety of Godiva's products available at Godiva Stores or in other Supermarkets and Drug Stores will have less chances of having negative influence on its consumers. 
• The fourth factor is situation. For example, consumer may choose to indulge at Godiva Store because they might have guest in town or want to impress someone with the upscale modern surroundings.
• The fifth factor is social visibility. The ability to interact with others at places like Godiva Boutiques where people are being pampered in a luxurious environment and having their favorite chocolates served in Gold-Gift Boxes. 

I find all these factors to be limited decision making because the consumers probably have some knowledge of what to expect at Godiva Chocolatier.

Cultural and Social Influences on Consumer Buying Decision

The cultural and social influences have great impact on a product's sale. The cultural factor can be described what you value or a social class. The social factor can be described as having a hip and classy atmosphere to have a social interaction. Godiva brand has the strength to entertain its consumers both socially and culturally, and with these offerings, it would definitely influence the consumer to spend their hard earned money. One good example of cultural influence on consumer buying decision is Chinese market in Chocolate industry.

China is a rapidly growing consumer market and more and more companies throughout the world are looking for ways to develop marketing, branding and communication that is relevant to Chinese consumers. Seen as an exotic food product, it has taken decades for Chinese people to accept the chocolate. Now the Chinese market is ready for chocolate from the taste and the culture.  Good news for imported chocolate is that the new generation of consumers has much deeper understanding of chocolate including its taste, making process and culture. In 2007,  Belgian Chocolatier Godiva made its first foray in Asia's mooncake market, which is a bakery product traditionally eaten during Chinese Mid-Autumn Festival. Now for the first time in the U.S., Godiva brings you exquisite mooncakes, a modern twist to a reserved Chinese tradition. Godiva is the first major Chocolatier to offer US customers an alternative to the traditional mooncakes. This chocolate's version is being sold in select Godiva stores in California, Washington D.C., Hawaii, Maryland, Nevada, New Jersey, and New York, as well as off the Godiva website online.This trend will probably increase the daily consumption of chocolate which means the market will expand greatly.