Why do consumers try new goods and services even if they are satisfied with their current product or service. Case in point: I frequent an independent coffee shop near my house almost every day on my way to work. The service is fantastic, as I walk in the door and they are pouring my coffee for me. They have a frequent use card which tracks usage and allows for easy payment. (Can be loaded with money ahead of time) I can walk in, get my coffee with a smile without worrying about dealing with any cash or credit card. If this was Cheers, my name would be Norm. It couldn't be more simple!
A new coffee shop (Gloria Jeans) is opening across the street from this location. I believe that my normal consumer curiosity is drawing me into this new store when it opens. Yet when I give some thought to this desire, it does not seem logical. As described above, the coffee shop that I frequent is satisfying all of my needs and then some. There is nothing that this new store will be able to offer me that I am not already receiving. Although I am unsure of the price points, I am assuming that the coffee in Gloria Jeans will be priced very close to what I pay at Bella Vita. I love the taste of the coffee I drink and the service is second to none. Why then would I go to this new coffee shop? If my coffee drinking experience is being taken care of at Bella Vita, it seems counter intuitive that I would go anywhere else. Yet I seem to have this desire to check out the new place. I don't think that I am alone in this feeling, as new places always seem to do well initially. I would assume that even if I got a cup of coffee from Gloria Jeans, I would remain loyal to Bella Vita. With that in mind, why then go there at all? Although I love my current experience, am I looking for something more? Will I ever be satisfied?
In an effort to answer this question I wanted to determine if I was the only one who had this notion. I asked another regular customer of Bella Vita about his intentions with regard to Gloria Jeans. He indicated that he would probably "check it out", although he had had their coffee and was not impressed. When pressed further about why he would go there, he could not give me a clear reason, and was surprised that he couldn't give me a good answer. It would appear that curiosity regarding a new business is fairly normal consumer behavior, and Americans (if not all consumers), feel some innate desire to visit a new location just to "check it out".
To further explore this phenomenon, I spoke with the current owner of Bella Vita, Scott Johnson. His business opened approximately 2 1/2 years ago and the initial 2-3 months were very busy for him. His customer base seemed to level off after the "newness" lost its appeal, and he has seen an increasing level since this point (fluctuating somewhat due to seasonal attributes). When asked about his new competitor, Scott indicated that he welcomed the competition and felt that this may actually draw more customers to this area, and actually help to increase his business. Either way, he also planned on "checking it out", as would be expected from any competing brand.
As for the ultimate impact on his business, only time will tell. But consumer behavior would seem to indicate that Gloria Jeans will prompt an initial wave of curiosity seekers to "check out " their brand, but ultimately, this would level off and settle in at a level that is based on which business provides the best overall experience. Having a well established client base who have already demonstrated their loyalty, I would tend to think that Bella Vita will continue to thrive despite of this increased competition. based on my personal experience and my observations about this business.
Tuesday, January 23, 2007
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