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

Question

BlackTom AI · Accepted Answer

When considering how personalized offers to frequent buyers influence consumer behavior, we need to map the effect to the most appropriate outcomes in marketing theory.
Option 1: Value co-creation. This concept involves customers collaborating with the firm to create value, such as giving inputs for products or services. While personalized offers can support engagement, the scenario emphasizes ongoing loyalty rather than collaborative value creation, so this option is not the best fit here.
Option 2: Performance risk reduction. Personalized offers can help shoppers feel more confident about future purchases, but the core effect described—encouraging continued patronage from frequent buyers—goes beyond simply reducing performance risk. It addresses ongoing loyalty and repeat behavior more directly.
Option 3: Post-purchase customer loyalty. This aligns with the scenario: by sending tailored deals to frequent buyers via the app, Starbucks reinforces positive purchasing experiences, strengthens habitual buying, and increases the likelihood of repeat visits after purchases have already occurred. This is the most direct link to loyalty after purchase.
Option 4: Social reinforcement. While social factors can influence continuing use, the description focuses on individualized offers to frequent customers rather than peer or social dynamics that reinforce behavior, making this a less precise fit.
Option 5: Need fulfillment. This category centers on satisfying specific customer needs through products or services. Although loyalty programs can fulfill needs, the core mechanism described is ongoing purchase reinforcement rather than immediate need satisfaction, so this option is not the best match.
Overall, the most accurate interpretation is that personalized app offers to frequent buyers primarily drive post-purchase customer loyalty by encouraging repeat business and reinforcing favorable future behavior, rather than primarily triggering value co-creation, risk reduction, social reinforcement, or mere need fulfillment.

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

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

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