Personalized Marketing: Segmentation of Consumer Groups Based on MBTI -- Taking Starbucks as an Example

Research Article
Open access

Personalized Marketing: Segmentation of Consumer Groups Based on MBTI -- Taking Starbucks as an Example

Li Cao 1* , Sirui Li 2 , Hao Wang 3
  • 1 Shangqiu Normal College    
  • 2 Jilin Agricultural University    
  • 3 Zhongnan University of Economics and Law    
  • *corresponding author caoli@sqnu.edu.cn
CHR Vol.41
ISSN (Print): 2753-7072
ISSN (Online): 2753-7064
ISBN (Print): 978-1-83558-557-3
ISBN (Online): 978-1-83558-558-0

Abstract

This paper studies the internal logic of the major brands represented by Starbucks adopting this marketing method, and explores how the brands transform the hot topics on the Internet into hot consumption spots and attract consumers through personalized marketing strategies. At the same time, this paper will also focus on the possible problems in the process of personalized marketing, and put forward relevant suggestions. In fact, due to the rapid development of modern information technology and increasingly fierce market competition, enterprises should implement precision marketing, select clear market segments as target markets on the basis of market segmentation, gain in-depth insight into consumer psychology, and tap consumer demand. With the help of MBTI personality test, enterprises can accurately and quickly locate consumer groups, identify the market, and maximize corporate benefits. At the same time, as the social consumption decision-making currency in the new network era, it is closely related to the individual needs of consumers. When enterprises grasp the personality characteristics of consumers and formulate marketing strategies, consumers' loyalty to the brand is greatly enhanced, and the marketing efficiency of enterprises is also greatly improved. Therefore, the segmentation of consumer groups based on MBTI has far-reaching research significance, and this marketing strategy will play an important role in the future corporate marketing.

Keywords:

Personalized marketing, MBTI theory, consumer psychology

Cao,L.;Li,S.;Wang,H. (2024). Personalized Marketing: Segmentation of Consumer Groups Based on MBTI -- Taking Starbucks as an Example. Communications in Humanities Research,41,132-136.
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1.Introduction

The MYERS-Briggs Type Indicator (MBTI) is a personality test developed by the Myers-Briggs mother and daughter in the United States in the 1940s. Based on Jung's psychological type theory, personality is divided into eight types: E (extroversion) - I (introversion), N (intuition) - S (sense), F (emotion) - T (thinking), P (perception) - J (judgment), and then arranged and combined to form a total of 16 personality types [1]. People who believe in the MBTI are usually used to defining their personality within these eight letters, and are more willing to accept such a "label" [2].

In 2022, the topic of "MBTI" on the Chinese Internet ushered in a big outbreak of heat, and some brands that follow the trend quickly responded. With the MBTI personality test widely spread among young people, major brands are following the trend to create personalized marketing models. For example, the well-known brand Starbucks jointly launched the "social personality test" interactive H5, with 10 new test questions to analyze the user's personality, recommend the corresponding new coffee, such as E-F-personality genius socialist suitable for Frappuccino, I-F-personality voice extractor suitable for tea cloud Oolong, E-T-personality rhythm mixing hand suitable for ice shock concentration, and so on. I-T-personality topic analysis officer suitable for cold brew iced coffee and so on.

2.Review of Literature

This paper examines the internal logic of MBTI marketing methods adopted by major brands Starbucks, and explores how brands can transform online hot topics into consumption hot spots and attract consumers through personalized marketing strategies. At the same time, this article will also focus on the problems that may exist in the personalized marketing process and make relevant suggestions [3].

The existing literature mainly discusses the development and historical background of MBTI theory, and analyze its application logic in personalized marketing. In addition, the existing literature also studies the application of personalized marketing based on MBTI. For example, consumer preferences: Consumers with different personality types have preferences for product selection and brand loyalty. The applied research also analyzes the marketing strategy of MBTI personality type customization through case studies in qualitative research methods. It also explores how different personality types affect how consumers interact with brands, including social media engagement, customer service experience. On this basis, the existing literature also evaluates the effect of this personalized marketing campaign. Through case studies, analyze the effectiveness of personalized marketing strategies based on MBTI, as well as the risks and challenges it faced.

In the literature on personalized marketing of MBTI, the analysis shows that the marketing strategy based on personality test can optimize marketing information through an in-depth understanding of consumer personality, and then improve marketing efficiency, however, the current research pays too much attention to the advantages of MBTI in personalized marketing, but lacks attention to its shortcomings. In fact, MBTI personalized marketing also has obvious flaws. For example, it is difficult to guarantee the scientificity and accuracy of the MBTI personality test [4]. Because there are categories of personalities, but there are differences between individuals, the test oversimplifies complex personality traits, and the personalized marketing strategies formulated for consumers' personal privacy have raised social concerns about the infringement of personal privacy and security, and the direct impact of MBTI personalized marketing on sales conversion rate is still uncertain [5,6].

3.Case Description

3.1.Introduction to Starbucks

Founded in 1971 and headquartered in Seattle, Washington, Starbucks Coffee Company is committed to ethically sourcing and roasting of the world's highest quality Arabica coffee. With more than 32,000 stores in 82 markets, Starbucks is the world's premier specialty coffee roaster and retailer. Since entering China in 1999, Starbucks has been committed to being a different kind of company: one that inherits the classic coffee culture while caring for its partners and providing customers with a different kind of Starbucks experience. Starbucks has opened more than 6,000 stores in more than 230 cities in Mainland China and has more than 60,000 Starbucks associates.

3.2.The Marketing Dilemma Faced by Starbucks

As a coffee brand that entered the Chinese market earlier, Starbucks also faces many challenges. Firstly, there's the marketing dilemma posed by the change in coffee market. With the emergence of local coffee brands such as Luckin coffee, COTTI coffee, Lucky Cup, the coffee market is no longer dominated by Starbucks, market competition has never been more intense, In the past, Starbucks was regarded as a representative brand of the elite consumption [7]. However, Starbucks in the market competition is inevitable to lose the price advantage. Secondly, the consumer group and their demand for coffee are changing. According to Starbucks' financial report, a large proportion of Starbucks' consumption comes from its members, and a considerable portion of the members are older generation consumers, who have a relatively fixed demand for coffee brands. However, with the changes of the times, the choice of coffee brands by the new generation of consumers is no longer limited to a single brand. The younger generation of consumers is more inclined to choose coffee brands that are more affordable. It can be seen that Starbucks' main marketing dilemma is the decoupling from the youth consumer group caused by the loss of price advantage.

3.3.Solutions to Overcoming Marketing Difficulties through Personalized Marketing

Starbucks has specific marketing goals aimed at increasing interaction with young consumers, enhancing brand image and influence through MBTI marketing. At present, the MBTI personality test is booming on social platforms and has become a "social ID card" for the new generation. Starbucks has paid attention to this hot topic and has applied it to brand marketing. Based on this marketing plan, Starbucks actively sought official data support and collaborated with MBTI official institutions to launch a simplified version of the "Social Personality Test". The assistance of official institutions has made the setting of personality testing questions more authoritative, so that consumers can more accurately understand their personality types and make corresponding consumption decisions. When Starbucks took advantage of the advanced features of emerging social media, such as fast transmission speed, wide range and high efficiency, it actively released relevant videos and text introductions on Weibo, Tiktok, RED and other platforms to attract consumers to participate in the test and guide consumers to make consumption decisions.

3.4.The Effectiveness of Starbucks MBTI Personalized Marketing

Through the MBTI personality test, Starbucks can better understand consumers’ personalities, establish emotional connections with, and provide differentiated services, improving consumer engagement and brand loyalty, while also providing them with a better experience. The use of MBTI in marketing has stimulated consumers' desire to share on social media, increased brand social media exposure and user interaction, it also demonstrated the brand's personalized attention to consumers, successfully creating a more humane brand image. Based on different personality types of consumers, Starbucks could offer customized products and services, which are reflected in product appearance design and naming, increasing the added value of the products. This marketing approach has successfully attracted a new generation of consumers, increased sales and market share, and made up for the shortcomings caused by the lack of price advantage, which has to some extent helped Starbucks overcome its marketing difficulties.

4.Case Study

Commending different coffees based on MBTI types, they may make quick purchasing decisions based on their MBTI types rather than in-depth analyses and evaluations of the coffee's taste, ingredients, and so on. This quick decision-making relies heavily on the consumer's sense of identification and belonging to the MBTI type, as well as trust in the Starbucks brand.

In addition, Starbucks' MBTI marketing is disseminated through various channels such as social media, which further increases brand awareness and exposure [8]. This type of communication also relies mainly on peripheral paths, as it takes advantage of the power and influence of social media to rapidly expand the brand's influence through sharing and retweeting, and at the same time rapidly attracts fans by using the Internet hotspot "MBTI" to enhance users' loyalty to the brand.

However, it is important to note that while the peripheral path can quickly increase brand awareness and exposure, it has a limited effect on building brand loyalty and long-term trusting relationships. Therefore, while using MBTI marketing, Starbucks also needs to focus on building a deep connection and trust relationship with consumers through the central path, for example, by providing high-quality product the Starbucks marketing case based on the Exhaustive Likelihood Model (ELM) reveals that the essence of Starbucks' marketing is personalised marketing with a fine sense of consumer needs. It should be noted that the ELM is an information-processing model that describes how people process, interpret and remember information. The model distinguishes between two information processing routes: the Central Route and the Peripheral Route. The difference between the two is mainly in the difference in the exhaustiveness of information processing. The central route requires individual consumers to analyse and evaluate information in detail in order to form a judgement about the target behaviour. While the peripheral route requires less effort, users do not need to examine the target exhaustive content, but rely on some hints about the target behaviour to form attitudinal perceptions, therefore, it is relatively scientific to analyse Starbucks' MBTI marketing with this model [9].

In Starbucks' MBTI marketing, the brand uses the MBTI, a popular personality testing tool, to bind products (e.g., different types of coffee) to different personality types, thus guiding consumers to choose the appropriate products based on their MBTI types. This marketing strategy relies heavily on the Peripheral Route because it does not require in-depth consumer involvement and rational thought, but rather relies on consumers' self-perception and categorisation of MBTI types. Specifically, when consumers see Starbucks' advertisements and services, and enhancing user interaction and experience to enhance brand loyalty and user stickiness.

Based on the Peripheral Path Theory of the Exhaustive Likelihood Model, researches can see that Starbucks' MBTI marketing has greatly improved its marketing efficiency mainly by leveraging consumers' sense of identification and belonging to MBTI types, as well as the communicative power of social media to rapidly increase brand awareness and exposure. However, in order to build long-term brand loyalty and trust, Starbucks also needs to focus on providing quality products and services through the central path, and strengthening the depth of interaction and experience with consumers.

5.Refining and Analyzing Marketing Models

5.1.Output Customized Content (Triggering Social Spread)

When shaping brand advantages, enterprises can take advantage of the situation to break the circle, combine hot spots with their own brands, output customized content with content, and skillfully combine MBTI to trigger social communication [10]. At the same time with the appropriate media delivery, to maximize the effect. Among them, the ad copy borrowed the current popular MBTI meme, attracted a lot of people's attention, and spontaneously shared on the social platform, thus causing a broken circle.

5.2.Product Theme Segmentation (Strengthen Identity)

Personalized marketing means giving users a fixed image. According to the four dimensions of the MBTI, consumers can be divided into 16 market segments, each with its own personality characteristics and consumption characteristics. For example, INTP consumers may prefer logical, innovative, high-quality products, while ESFJ consumers may prefer practical, humane, and socially responsible products.

5.3.Creating Exclusive Scenarios (Substitute Product Experience)

Brand segmentation products are to strengthen identity, so that the segment of the population and the product closely linked together. The so-called marketing scene is to make the brand's products (services) more attractive. The brand creates different use scenarios according to the distinct personality characteristics of I, E, J and P people. In the user group of Starbucks in the above case, people with I personality are introverted and like to drink coffee alone to relax themselves. E-people love to share, love to socialize, and are happiest when they drink coffee together. By connecting audiences with different hobbies and personalities, different groups of people have a very immersive product experience.

6.Conclusion

In this era of rapid change, the success of the Starbucks brand is dependent on sensitive consumer insights and flexibility. Today, more and more brands are venturing into MBTI marketing. But Starbucks brand avoids blindly following the trend, and before rushing to cater to the young consumer group, it first deeply understands their real needs. Only by truly understanding the inner demands of young consumers can brands find a breakthrough in MBTI marketing and provide them with valuable and in-depth services and experiences.

Authors Contribution

All the authors contributed equally and their names were listed in alphabetical order.


References

[1]. Hasan, A., Moin, S., & Pasha, M. (2019). Prediction of personality profiles in the Pakistan software industry–A study. Psych, 1(1), 320-330.

[2]. Takawade S., Pednekar S., Bbhagat B. (2023) User Personality: Prediction and Question Answering System. Journal of Advancements in Robotics, (1),10.

[3]. Gountas J Y., Gountas S. (2000).A new psychographic segmentation method using Jungian MBTI variables in the tourism industry.Tourism Analysis,5(2-4),151-156.

[4]. Gregorius Ryan.,Pricillia Katarina.,Derwin Suhartono.(2023) Information,14(4),217.

[5]. Qin X.Y., Wang L. (2024) Phenomenological Perspectives on MBTI Media Consumption Behaviour of Youth Groups and Reflections on Reality. New Media Research,10(01),37-40.

[6]. Hermes, A., & Riedl, R. (2021). Influence of personality traits on choice of retail purchasing channel: literature review and research agenda. Journal of Theoretical and Applied Electronic Commerce Research, 16(7), 3299-3320.

[7]. Areiza-Padilla, J. A., Cervera-Taulet, A., & Manzi Puertas, M. A. (2020). Ethnocentrism at the coffee shop industry: a study of starbucks in developing countries. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 164.

[8]. Osmanova, I., Ozerden, S., Dalal, B., & Ibrahim, B. (2023). Examining the relationship between brand symbolism and brand evangelism through consumer brand identification: evidence from Starbucks coffee brand. Sustainability, 15(2), 1684.

[9]. Yan D. (2017)A case study of exhaustive likelihood modelling. Journalism Research Guide,8(24),71.

[10]. Lin H.,Wang C.D.,Sun Y.J.(2023)Research progress in personality recognition for social media data. Computer Science and Exploration,17(5),15.


Cite this article

Cao,L.;Li,S.;Wang,H. (2024). Personalized Marketing: Segmentation of Consumer Groups Based on MBTI -- Taking Starbucks as an Example. Communications in Humanities Research,41,132-136.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of ICIHCS 2024 Workshop: Researching Symmetrically to Explore Exclusion, Othering and Whiteness in Local Policy Making

ISBN:978-1-83558-557-3(Print) / 978-1-83558-558-0(Online)
Editor:Heidi Gregory-Mina, Nafhesa Ali
Conference website: https://2024.icihcs.org/
Conference date: 29 September 2024
Series: Communications in Humanities Research
Volume number: Vol.41
ISSN:2753-7064(Print) / 2753-7072(Online)

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References

[1]. Hasan, A., Moin, S., & Pasha, M. (2019). Prediction of personality profiles in the Pakistan software industry–A study. Psych, 1(1), 320-330.

[2]. Takawade S., Pednekar S., Bbhagat B. (2023) User Personality: Prediction and Question Answering System. Journal of Advancements in Robotics, (1),10.

[3]. Gountas J Y., Gountas S. (2000).A new psychographic segmentation method using Jungian MBTI variables in the tourism industry.Tourism Analysis,5(2-4),151-156.

[4]. Gregorius Ryan.,Pricillia Katarina.,Derwin Suhartono.(2023) Information,14(4),217.

[5]. Qin X.Y., Wang L. (2024) Phenomenological Perspectives on MBTI Media Consumption Behaviour of Youth Groups and Reflections on Reality. New Media Research,10(01),37-40.

[6]. Hermes, A., & Riedl, R. (2021). Influence of personality traits on choice of retail purchasing channel: literature review and research agenda. Journal of Theoretical and Applied Electronic Commerce Research, 16(7), 3299-3320.

[7]. Areiza-Padilla, J. A., Cervera-Taulet, A., & Manzi Puertas, M. A. (2020). Ethnocentrism at the coffee shop industry: a study of starbucks in developing countries. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 164.

[8]. Osmanova, I., Ozerden, S., Dalal, B., & Ibrahim, B. (2023). Examining the relationship between brand symbolism and brand evangelism through consumer brand identification: evidence from Starbucks coffee brand. Sustainability, 15(2), 1684.

[9]. Yan D. (2017)A case study of exhaustive likelihood modelling. Journalism Research Guide,8(24),71.

[10]. Lin H.,Wang C.D.,Sun Y.J.(2023)Research progress in personality recognition for social media data. Computer Science and Exploration,17(5),15.