1. Consumer Behavior Emad Abbasi, Alan Albert, Sergiu Baciu, Katie Bagriy, Robert Bartel, Ashley Bauer, Matthew Bonick, Sara Brink, Marcos Ceniceros November 15, 2010

2. Overview of Dunkin’ Founded in 1950 by Rosenberg Headquartered in Massachusetts Serves 3 million + people/day Subsidiary of Dunkin’ Brands, Inc Values: eatdrinkthink

3. Our Objective and Approach Objective: Does coffee drive the sales of Dunkin’ Donuts? Approach: Took statistics each day for two weeks Interviewed 25 people randomly selecting those who ordered a variety of products

4. Where Our Customers Are

5. Market Segmentation DD targets students with 10% discount Loyalty – 80% of customers come regularly (16% come specifically for the coffee) Identifiable: customers come in before and after school/work Sizeable: Students and downtown businesses are main profits Stable: Flow of students and professionals always looking for cheap and fast Accessible: National - large-scale campaign Local – window displays

6. Statistics Race: White and African American primarily Age: 18 – 65 Gender: Female Socioeconomic: Students, blue collar, professionals

7. Consumer Decision Making Comfort in reliability and speed Professionals and students need fast and replenishing Price makes it favorable for those that can’t get home for lunch

8. Consumer Motivation Maslow’s HierarchyTrio of Needs Self-Actualization and Egoistic are not applicable Social: 20% looking for socializing Safety: cheap prices insure financial security, fast food inforces order and stability in lives Physiological: everyone is looking for replenishment of some form Power: not applicable Affiliation: those coming for socialization – students looking to relate to friends Achievement: indirectly allows them to get quick breakfast and focus on studies

9. Personality VALS ◦Achievers – goal-oriented lifestyle of students and professionals, seek convenience and routine  Avoid situation with high degrees of stimulation or change ◦Makers – value practicality and self-sufficiency  Prefer value to luxury

10. Consumer Learning Specific Cognitions ◦Awareness of alternatives  Who is closer?  Am I hungry?  What can I afford?

11. Consumer Attitude Formation

12. Consumer Perception Product Personality and Color ◦Pink orange and brown colors have become iconic to Dunkin’ Donuts Product Positioning ◦“America Runs on Dunkin’” implies convenience and reliance of the population Product Repositioning ◦Used to focus on the donuts – now the coffee is the novelty Perceived Quality ◦Intrinsic: taste, smell, caffeine, and freshness of bagels ◦Extrinsic: perceived cheaper price (actual difference between Starbucks and Dunkin’ Donuts = $.26

13. Culture and Subcultures Culture ◦Professionals and Future Professionals – comforts in education and stability Subculture ◦Of Dunkin’ on Jackson: CDM students, Downtown professionals

14. Conclusions Demographics: Students and professionals (primarily white and African American) Motivation: Physiological and Safety VALS: Makers and Achievers Perception: position from donuts to coffee Subculture: