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Identification of Consumer Decision Journey in Choosing Third Wave Coffee Shop in Bandung by Youth Market Segment

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Identification of Consumer Decision Journey in Choosing Third Wave Coffee Shop in Bandung by Youth Market Segment JOURNAL OF BUSINESS AND MANAGEMENT Vol. 6 No.1, 2017: 88-100 IDENTIFICATION OF CONSUMER DECISION JOURNEY IN CHOOSING THIRD WAVE COFFEE SHOP IN BANDUNG BY YOUTH MARKET SEGMENT Fajar Eka Putranto and Herry Hudrasyah School of Business and Management Institut Teknologi Bandung, Indonesia [email protected] Abstract. Background: The growth of third wave coffee shop in Bandung increasing the competition among competitor. By understand what consumers prioritize in choosing third wave coffee shop can help the industry to be more sustainable. Methods: Qualitative approach like interview with professional worker, focus group discussion with key informants, and direct observation. Also this research use quantitative approach via questionnaire to find the flow of decision journey. This method was given to the Bandung’s third wave coffee consumer from 15- 24 years old. Results: The majority of consumers agree with the variables that are shown in pre-purchase and on purchase phase. Thus, there are exist gap which is knowledge gap. Conclusion:The consumer decision journey helps to map how the consumer path in terms of choosing a third wave coffee shop. Then, after the industry find and understand the path, it can pratically implement to their business. Keywords: consumer decision journey, service marketing, third wave coffee Introduction Coffee is one of commodity that growth successfully in Indonesia. Even thought that the coffee crop itself wasn’t a native crop from Indonesia, the role of Dutch occupation in 17th century gives big impact towards coffee plantation and development in Indonesia (Roosebooms, 2014). The coffee crop was successfully planted in Indonesia and The Dutch use coffee from Indonesia as their trading commodity that successful in Europe and make Indonesia coffee famous and well-known until now. Figure 1 the coffee consumption in 2012 in East and Southeast Asia by International Coffee Organization 88 Putranto and Hudrasyah / Journal of Business and Management, Vol.6, No.1, 2017: 88-100 Based on the data that published about coffee consumption in East and Southeast Asia in 2012 by International Coffee Organization, the total coffee consumption of Indonesia is high, around 3.6 million bags in 2012. Even though that per capita consumption is below 1kg but with population around 250 million the market still can emerge and the total consumption can increase significantly. The developments of coffee industry also increase from time to time. Nowadays, coffee is one of activities that shift into lifestyle especially in urban area. The number of coffee shops also increase from time to time that bring terms of “specialty” that serves high quality blends and variety of method in serving a cup of coffee. This term also known as “Third Wave of Coffee” that was first mentioned by Skeie in 2003 where the coffee not only knows as “bitter drink” but the way of enjoying coffee are more like wine-tasting where we can experience many kind of taste in coffee. In fact, the researcher found that the youth market segment, which ages from 15 to 24 years old (UNESCO), are the most types of consumer that easily found in the third wave coffee shops. Although, not all of them actually practically get into “third wave coffee” drinking. Therefore, this group of age visits coffee shop to socialize and do productive stuffs like working using laptops or reading books (Pozos-Brewer, 2015). Also, the youth market segment not only role as consumer but also pursue the entrepreneurship role by working as barista, coffee roaster, or coffee shop owner. The growths of third wave coffee shops in Bandung become one of trends in their urban businesses. Until the end of 2016, there are more than 20 coffee shops that emerge in Bandung that brings the value and concept of third wave coffee culture that offer experience in drinking coffee that can come from the origin of the coffee, the variation of method and process (Edwards, 2014) like Common Grounds, Yellow Truck Coffee, Contrast, Sejiwa, Armor Kopi, Noah’s Barn, Kopi Florist and many other brand of third wave coffee shop. The third wave coffee shops actually flourish as place that not only the consumer can come to have a cup of coffee where but also can accommodate activities that will grow as sociable place (Pozos- Brewer, 2015). It means that the needs of the consumers try to fulfill when they visit a third wave coffee shop and the challenge comes to the entrepreneur that works or own third wave coffee shop to maintain and also improving from the aspect that related to the producing and quality of coffee drinks to the aspect that makes people find important for them to be sociable in third wave coffee shop. Other than that, the growth of third wave coffee shop in Bandung can trigger competition among them. With many choices, people are more lo likely to be selective when choosing a third wave coffee shops. Then, the management needs to know the things that consumer find important when they choosing third wave coffee house. This can be find by using consumer decision process to find those variables in the process of decide the third wave coffee shop from beginning to the end. By knowing the right variable that consumers find important, it will help the management of the third wave coffee shop determine what values that they will more focus to attract and engage the consumers to visit they place. With the increase of the trend of third wave coffee, the producer need to understand the industry or it will result to doom to industry because consumers feel inconsistent experience, especially regarding the coffee drink (Karina, 2016). In this research, the objective is to figure out the consumer decision journey that happens in Bandung’s market regarding in choosing a third wave coffee shop in consumer that age from 15 to 24 years old. Then, there are questions that researcher tried to answer: How is the decision journey that consumer made for choose the third wave coffee shop? What variables that consumers find important in the process of decision journey? 89 Putranto and Hudrasyah / Journal of Business and Management, Vol.6, No.1, 2017: 88-100 Also, this research limit to The requirements for filling the questionnaire is that the respondents were visited Indonesian-based coffee shops that located in Bandung at least two different brands from early 2016. So, if the respondents visit Starbucks, J.Co, Caribou Coffee, Ngopi Doeloe, Caffee Bene and shops whom sells coffee drinks from sachet like Nescafe, Kapal Api, and other coffee that packed in sachet doesn’t met the requirement. The age of respondents are varying from 15 years old to 24 years old. Thus, the respondents fill the questionnaire by online. Back in 2009, McKinsey developed a new theory that sum up the process of decision making that happen when a consumer choose a suitable products or services, called Consumers’ Decision Journey. This method was developed by examining purchase decision of almost 20000 consumers. This theory compresses and described about decisional making of consumer into four steps: initial consideration, active evaluation, moment of purchase, and post-purchase experience. Figure 2 Consumer Decision Journey model by McKinsey Marketing mix is one of business tool that be using to determine what kind of factors that associate in the marketing process. Originally, a marketer named E. Jerome McCarthy proposes the marketing mix in 1960 that consist of 4Ps: Product, Place, Price, and Promotion. But, when implement marketing mix in services; there is additional Ps that makes the marketing into 7Ps by Bernard H. Booms and Mary J. Bitner in 1981. The additional Ps exist because that the 4Ps generally only talks about sales and promotion but in service the marketing process can be happen by interaction between consumer and producer directly in one time. The marketing promotion can be happen in there that was conducted by service delivery people. This also triggers consumer perception towards the service delivery condition that can affect their perception. The additional Ps is: People, Process, and Physical Evidence. Figure 3 Factor influencing buyer’s behavior in the Buyer Black Box The factor that influencing behavior are cannot be control by the company (Claessens, 2015). But, by understanding the factors can help company to decide what kinds of approach that suitable with the market. The consumers of third wave coffee in this research are focused from 15 to 24 years old. Then, the group age tends to come to coffee shop as part of the lifestyle that blooms in Indonesia’s market. Aside from seeking good qualities of coffee, this group of age tends to seek productivity and socializing as their motivation to come to visits third wave coffee shop. It can be happen because this group age are majority comes from students in senior high school and colleger. 90 Putranto and Hudrasyah / Journal of Business and Management, Vol.6, No.1, 2017: 88-100 In the service market practice, it often to finds that the consumer have different point of view with the producer regarding the service that they encounter, in this case between the consumer and the company of third wave coffee shop. Parasuraman, Zeithalm and Berry in 1985 developed what is known as service gap that show the difference perception that generally happens in the service industry (Coster, 2009) Figure 4 Gap Model of Service Quality (Parasuraman, Zeithalm and Berry, 1985) Nick Cho (2005) from Murky Coffee was details the difference of first, second, and third wave of coffee. The first wave of coffee is about mass consumption of coffee itself with their primary product is coffee that you can buy in every supermarket or grocery store easily.
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