Carlos regularly buys coffee from a local café instead of Starbucks, even though Starbucks offers rewards. He explains that the baristas at the café know his name and remember his favorite drink, which makes him feel valued. Which factor best explains Carlos’s loyalty?

Question

BlackTom AI · Accepted Answer

When evaluating why Carlos remains loyal to the local café, we start by restating the situation and each option to ensure clarity.
Option 1: Customer satisfaction. Carlos’s loyalty stems from personal interactions—baristas know his name and remember his favorite drink—which enhances his sense of value and positive feelings toward the café. This aligns with the idea that satisfied customers develop repeat patronage because the experience meets or exceeds expectations.
Option 2: Selective perception. This would suggest Carlos is filtering information to confirm a preexisting belief about the café, or might ignore any negative cues. However, the scenario emphasizes positive, personalized service that generates value, not a biased interpretation of information. The data given does not indicate biased perception.
Option 3: Cognitive dissonance. This concept involves psychological discomfort from holding conflicting beliefs or behaviors, often leading to attitude adjustment. In this case, there’s no conflicting belief described (e.g., preferring a cheaper option while liking Starbucks). The loyalty seems driven by positive feelings, not a reduction of dissonance.
Option 4: Functional need recognition. Functional needs relate to practical, utilitarian needs (such as performance or basic utility). While the café satisfies functional needs for coffee, the distinctive loyalty stems more from social and personal satisfaction aspects (being remembered, feeling valued) rather than mere functional utility.
Option 5: Price sensitivity. If Carlos were primarily motivated by price, Starbucks could have been equally appealing due to rewards and potential savings. His behavior—choosing the café because of personalized service over a reward program—points away from price as the main driver, indicating that price sensitivity is not the core factor here.
In summary, the scenario centers on the emotional and relational value Carlos perceives from the staff’s personalized attention, which maps best onto the broad idea of customer satisfaction driving loyalty. The other options fail to capture the central driver of his behavior, either by misattributing the motive (perception bias, dissonance, functional-only needs) or by overemphasizing price effects when personal connection appears to be the key motivator.

FA25-BL-BUS-M370-11927 Marketing Midterm Exam- Requires Respondus LockDown Browser

Carlos regularly buys coffee from a local café instead of Starbucks, even though Starbucks offers rewards. He explains that the baristas at the café know his name and remember his favorite drink, which makes him feel valued. Which factor best explains Carlos’s loyalty?

View Explanation

Log in for full answers

Similar Questions

Which of the following is most likely to lead to high levels of customer loyalty?

True or False? It is great to have satisfied customers, but even better to have loyal customers.

Which of the following statements about loyalty programs is false?

When Starbucks uses its app to send personalized offers to frequent buyers, this encourages:

The Broadway Café has been the only coffee shop in its neighborhood since 1952, but with a Starbucks opening nearby, your employees are worried about competition—what is the best strategy to maintain a competitive advantage using business intelligence?

Consumer loyalty can often drive profits and growth.

The role of marketing and advertising is not only to convey information about a product or service’s features but also to build an emotional bond with customers to create long-term loyalty.

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler