The usefulness of fully integrated in-store and augmented reality application in educating Chinese customer about coffee: the case of Starbucks

Abstract

Starbucks has been utilizing augmented reality (AR) as a form of experiential marketing, which has been effectively contributing to a positive Chinese customer-brand relationship and customer satisfaction through the creation of experiential value. Starbucks AR focuses not only on its product but also on an entire experience created for the customers. In this study, determined how Starbucks cultivates a unique coffee culture in China using augmented reality application in educating Chinese to gradually switch from tea beverage drinking to fresh coffee since its entrance into the Chinese market. DeLone and McLean’s (2003) IS Success model was used as a statistical method to assess the statistical significance of the proposed relationships among sets of observed variables. This study provides a relatively comprehensive review for marketers and scholars to know the Chinese coffee market, including development, structure, and Chinese coffee culture, especially the fresh coffee market. Meanwhile, understanding Starbucks’ marketing strategies and business model on cultivating coffee culture on Chinese millennium help global marketers and business to understand how to create appropriate marketing strategies to respond to local millennium consumers’ cultural background.