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Consultants Rachel Riesgraf, Colby Ring, Cody Seaberg, and Jesse Senst

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Table of Contents Background……………………………………………………………………………………………………………………………………

Store History………………………………………………………………………………………………………………………….. Store Description……………………………………………………………………………………………………………………… Products Sold………………………………………………………………………………………………………………………… Positioning…………………………………………………………………………………………………………………………….. Competition…………………………………………………………………………………………………………………………..

Target Market……………………………………………………………………………………………………………………………….. Primary Market………………………………………………………………………………………………………………………….. Secondary Market……………………………………………………………………………………………………………………. Methods………………………………………………………………………………………………………………………………………. Basic Observations………………………………………………………………………………………………………………………….. Demographics…………………………………………………………………………………………………………………………. Conversion Rate……………………………………………………………………………………………………………………… Interception Rate……………………………………………………………………………………………………………………… Purchase Patterns…………………………………………………………………………………………………………………… Store Experience……………………………………………………………………………………………………………………… Recommendations………………………………………………………………………………………………………………………….. Recommendation #1: Premium Burger……………………………………………………………………………………………. Recommendation #2: Burger Challenge…………………………………………………………………………………………… Recommendation #3: Delivery and Quantity Discount to Downtown Businesses………………………………………………. Recommendation #4: $5.00 Voucher on Receipts………………………………………………………………………………. Recommendation #5: Combo Pricing……………………………………………………………………………………………… Recommendation #6: Advertisements in Restrooms……………………………………………………………………………… Appendices……………………………………………………………………………………………………………………………………. Appendix A: Interview with Manager………………………………………………………………………………………………… Appendix B: Laddering - Customer #1…………………………………………………………………………………………….. Appendix C: Laddering - Customer #2……………………………………………………………………………………………….. Appendix D: Observations Recorded……………………………………………………………………………………………….. Bibliography…………………………………………………………………………………………………………………………………….

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Background

Store History: 7 West Taphouse opened October 15th, 2012. The owner, Rick Lampton, decided to open 7 West after a successful 15 years in the Duluth/Superior restaurant business. He is currently a managing partner for Grizzly’s Wood-Fired Grill locations in Duluth and Superior. With the help of Steve Letnes, a Grizzly’s alumni, the pair has set out to serve the best burgers in the Twin Ports. Along with the burgers, they have more than 40 different American tap beers to satisfy every type of beer drinker. Since their opening, 7 West has become a beer connoisseur’s paradise. They have even been an exclusive taste venue for brewers to introduce and test the newest craft beers on the market. Store Description: 7 West Taphouse is located at 7 West Superior Street in downtown Duluth. It is in the heart of the Duluth business district and located just a short walk from the bridge into Canal Park, which is a very popular tourist area. The atmosphere of 7 West is similar to a sports bar, but with a more inviting feel. When you walk in the door, there is a small area with posters about events going on around Duluth and some other handouts. After walking through this area, the next door opens into the Taphouse itself. When walking in, the first thing you see is a large bar to your right with over 40 taps lining the wall along with multiple TV’s playing different sports throughout the bar. Depending on the size of your group, you can seat yourself at one of the tables or at the bar. The environment is very social and light, whether people are at the bar enjoying a beer and watching a game on TV, or a group of friends grabbing a burger at one of the large tables talking about their work days.

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7 West is looking to cater to people that are trying to get a quick bite to eat for a good price. Also, they are looking for people who like to enjoy the many different types of beer that they offer. With the great selections of burgers, beer, fries, and other sides, 7 West has something for everyone to enjoy.

Products Sold: 7 West Taphouse offers a selection of 16 specialty beer burgers all made with fresh beef and always served with a side of pickles. Don’t forget to ask for their special 7 West Taphouse dipping sauce! They also offer fresh cut fries or chips as well for a small additional price. You can get these fries or chips seasoned to perfection with the selection of 8 different flavors. Customers looking for a healthier option

of a burger and fries combo can substitute beef for ground turkey or a veggie burger, and can substitute regular fries for sweet potato fries. There are also other sides such as a salad, soup, coleslaw, fried beer cheese wontons and beer battered onion rings. A customer not interested in the idea of a burger always has the option to order from 5 of their gourmet sandwiches and wraps as well. For a customer with a lighter appetite, they can opt for a choice of 3 fresh salads all served with bread sticks. Also, 7 West Taphouse has recently spiced up their menu by adding boneless

wings with 7 delicious flavors, and don’t forget apple fritters as dessert! This menu fits perfectly with their forever changing, wide selection of 40 tap beers, ciders and wine. Positioning: 7 West Taphouse positions themselves on three key points. First, they focus on positioning themselves as “always happy hour prices,” as said by the manger. Consumers of both the primary and secondary target market find this very appealing. Tap beers are always priced at $5.00, burgers start as low as $3.59, and fresh cut fries for only $2.29. As well as $1 off taps and wine, Monday through Friday at 3:00 p.m. to 5 p.m. For consumers who are on a budget or those who just like to save money, 7 West Taphouse provides the perfect place to experience quality burgers and beers at a happy hour price. Second, 7 West Taphouse positions themselves as the “Home of the Beer Burger.” Consumers of both target markets love burgers and love variety. 7 West Taphouse has become known for their 1/3 pound specialty seasoned, ground beef, beer burgers,

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served on a fresh bun with pickles. With 16 unique burgers on their menu that can be made custom to order, as well as substitutions for turkey or veggie burgers, 7 West Taphouse provides an experience that all customers will enjoy. And you don’t want to miss the burger of the month. Lastly, 7 West Taphouse positions themselves as the ultimate place for beer connoisseurs and the occasional beer “snob.” This is the ideal place for their primary target market. They serve 40 all American, all craft, draft beers, as well as an impressive selection of craft bottles. From your old standby beers seen everywhere to nitros, seasonal, ciders, ales, ambers and more, 7 West Taphouse has it all. They leave the brewing to the professionals and partner with the local favorite, Bent Paddle, as well as some other well-known brewers outside of Duluth such as Surly, Odell and Alaskan Brewing companies. Whether someone is stopping by the Taphouse to grab their favorite beer, or someone who is ready to experiment with their forever changing selection, 7 West Taphouse is sure to please both parties. Competition: From Sam Fladeboe’s perspective, a manager at 7 West, we learned that the Taphouse is often compared to long-standing Anchor Bar in Superior, Wisconsin (see appendix A). The fact that Anchor Bar is well-known in the Twin Ports area for their 24, even lower-priced, burgers and fries, this brings out a couple commonalities with 7 West Taphouse. In addition, Anchor Bar serves microbrews, but not to the same level of selection that 7 West Taphouse has to offer. Another factor separating the two businesses is location. A lot of Anchor Bar customers came from across the bridge, and with the opening of 7 West Taphouse, these customers now prefer 7 West due to proximity and of course the good selection of beer and food. Additionally, 7 West Taphouse appeals to more than just the burger lover, unlike Anchor Bar that serves strictly burgers and fries; 7 West also has a variety of sandwiches, wraps, soups and salads with their main focus on burgers and beer. Sam focused on their key competitors for 7 West Taphouse as being other downtown bar and grills; for instance, Pizza Luce,

Sammy’s Pizza and Restaurant, Dubh Linn Irish Pub and Original Coney Island Diner. According to Sam, Pizza Luce is of their biggest concerns due to their close proximity. Not only is Pizza Luce located a block from 7 West Taphouse, but Pizza Luce is open from breakfast to late night. Although Pizza Luce’s prices may be a little higher, they have daily happy hour and specials for every day of the week. A separating factor is that Pizza Luce offers free delivery from 11 a.m. to close. The closest thing 7 West Taphouse has to offer is to-go orders. According to Sam, 7 West Taphouse is considering a delivery service to the downtown area in order to appeal to these busy workers of the primary target who don’t have time to leave work or just like

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the convenience of delivery. Moreover, the competitive advantage that 7 West Taphouse holds over Pizza Luce is their low prices and wide selection of unique burgers and beers. 7 West Taphouse appeals to a different flavor palate than Pizza Luce. Another group of competitors is fast food restaurants in the area such as McDonalds, Burger King, Wendy’s, and more. In today’s society, consumers are looking for a cheap, quick meal. The thing that separates 7 West Taphouse from these fast food restaurants is quality food. 7 West Taphouse prepares their food to order and uses fresh ingredients. This satisfies the needs of a health conscious consumer on a low budget who is looking for quick service without sacrificing taste. 7 West Taphouse views proximity as one of their competitive advantages that appeals to their target market. An interview with a Duluth college student who has visited both 7 West and Anchor Bar stated that she prefers the convenient location of 7 West Taphouse in comparison to Anchor Bar. Additionally, General Manager, Ben Herseth, stated that Duluth natives typically don’t like to venture down to canal park due to the usual chaos; therefore, this eliminates the restaurants in Canal Park that serve burgers as direct competition. Being located downtown also draws in downtown workers who are looking for a quick but good bite to eat. 7 West Taphouse also views quick service as one of their competitive advantages. As previously said, this quick service draws in workers on lunch break who aren’t satisfied with fast food restaurants but still want the quick service. Ben stated that their average ticket time during lunch is 5 minutes and 13 seconds; that makes for a quick, delicious meal. Ben also stated that a way they keep the service quick and people moving is by not offering free soda refills. All soda comes in a can for $1.59 and by doing this customers don’t feel the urge to sit around sucking down free refills while running the servers ragged. This keeps for quick, prompt service. Furthermore, to keep service quick, 7 West Taphouse has a to-go, self-serve kiosk at the entrance of the restaurant. Customers are welcome to come in, place their order and have a meal ready to go within 5 minutes. Another competitive advantage that 7 West holds is their low-priced but unique selection. They have a wide selection of unique burgers and beers, which is something that other restaurants in the downtown area don’t even come close to competing with. Due to their selection of burgers and beers, 7 West Taphouse appeals to a different market than most other downtown restaurants as well. Along with that, 7 West is only one of few places in Duluth where a customer has the selection of 9 different flavors of fries and chips. Furthermore, a strong competitive advantage that 7 West Taphouse has is their dedicated regulars. These customers stop in 2 to 3 times every week usually during lunch time. They are interested in the new beers on tap, and they are always wanting learn more and try something new. The servers are friendly and are open for conversation with the regulars. There is a strong sense of community at 7 West Taphouse. It’s a casual place to come relax alone while enjoying sports, or to meet up with your friends, family or coworkers. To show their gratitude to the regulars, 7 West offers lunch loyalty cards. When you buy 7 burgers during lunch, you get one free. Ben let us in a little secret, for the regulars, they will give them a punch anytime of the day for ordering a burger.

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Target Market

Primary Market: The Middle Aged Worker After our interview with Sam, we had discovered our primary target market, the middle aged worker. Key demographics include an average household annual income of approximately $95k, 47% have earned a college degree, 72% are married, 43% are men, and 53% of this demographic have kids that are under the age of 18 while still living at home. This target market has a median age of 42 and enjoys spending their breaks or spare time at a local bar and grill in order to relax, get a bite to eat, have a drink or two, all within a timely fashion. These consumers can be defined as “achievers”. They are hard workers and tend to buy their products in order to increase their productivity and efficiency. We have learned that this consumer has shown to be a very loyal and profitable customer. Since the majority of visits are either during a lunch break or right after work, there is a very high chance of repeat purchase behavior to occur if this consumer was left satisfied. This has been a trend for a while now at 7 West Taphouse, and some of the most loyal customers that come in are on a first name basis with the employees. Even though these consumers enjoy their privacy, they tend to like “shopping” in groups and trying new things. This key aspect can be extremely profitable for 7 West Taphouse. Especially after a long day at work, these consumers are in the mood to come back with their friends or family, decompress, try a variety of craft beers, grab a meal and just have an all-around good time. To sum up this target market, we wanted to take one last look at the overall decision making process for these consumers. There are a couple key needs that have to be met. For starters, they are usually looking to satisfy their need for hunger, and do so quickly. Another key attribute 7 West Taphouse has that is satisfied from the large variety of craft beer, is the underlying need for high self-esteem for the consumer, because they take pride in the types of beer they drink. When searching for information and evaluating the alternatives of a place to eat or drink, a lot of times it is derived off of a group consensus from the people they are with. Since 7 West Taphouse has a very central location and is close in proximity to many business people from the downtown area, the sheer convenience has proven to play a big role when making a decision. Alongside with the convenience factor, is the amount of involvement required for the consumer when making a decision. Since every product they offer costs on average about $5.00 -

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$6.00, this reduces any cognitive dissonance the consumer may have when making a purchase, therefore making this a low involvement purchase decision. Secondary Market: College Students

Although during the week the target market is middle aged workers, on the weekends 7 West hopes to attract a new target market. This secondary market is college age students who enjoy drinking beer. The secondary market can be described as “experiencers”. Although we consider these “experiencers” college students, they could be anyone with characteristics that are similar to these demographics. The median age group for this market is 23 years old. 67% of experiencers are employed, 42% of them are female and 21% of them are married. They are often described as assertive, energetic and impulsive. This target market lives a fast paced lifestyle which requires a high need for structure and prioritization in the short and long run. They also consider themselves very sociable and use social media daily. This group enjoys experimenting with new craft beer, weekends out with friends, and they are always on the run. These are a few aspects that are crucial to 7 West and their marketing. The Taphouse has a wide variety of craft beer for this market to experiment with. They also serve cheap food fast, which makes them attractive to the fast paced college life. Their location, the corner of Lake and Superior Street, is great for the college student who wants to stop in for a burger and a few beers before going out on a Friday or Saturday night. This secondary market is a market that grabs a group of their friends to join them at 7 West. This directly relates to their need for social interaction. The experiencers live their life differently during the week than they do on the weekends. During the week this group is always on the go and usually tries to choose the healthy foods to eat. This group also looks for cheap, fun things to do to get out during the weekdays. Things like movies, bowling, or frisbee golf are what you would find a person from this target market doing Monday through Thursday. The average household annual income is only around $50k, or less for the typical college student, and because of this, people in this target market take pride in their spending and saving habits. The underlying need for their decision making process is the need to feel socially accepted. They use the things they buy and the places that they hang out to satisfy their hunger for social acceptance. For this group, time is a scarce resource. This is why they consistently strive for quick and convenient meals. What we found out about this market is that putting time and energy into the right things like school and a social life, allows a person to increase self-esteem and create a successful career.

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Methods Our strategy for observing 7 West was to select peak hours, which includes weekday lunch hours and weekend dinner/evening hours. The general manager informed us that during off-peak hours there were a limited number of customers that stopped into 7 West Taphouse. He also informed us that during lunch hours throughout the week the majority of their customers are regulars and business workers, and that during weekend dinner hours there are more college students and empty nested parents. Our strategy was also to ensure that no more than two group members observed on the same day. We also made a rule that each group member had to observe during both lunch and dinner hours to ensure a wide range of observations. As a group we observed for 41.25 hours and had a goal of reaching 80 observations at minimum, which we obtained. We decided to observe 3 key topics: demographics, store experience, and purchase patterns. To do this we created a spreadsheet to track the hours spent there by each customer, gender, age, food purchased, beverages purchased, ticket time and attire. With the use of this information we decided we would be able to create proper recommendations based on the average type of consumer and their typical purchase patterns, as well as the experience these customers sought to have. We also interviewed a store manager and two customers using the laddering technique. We also had the opportunity once to chat with the general manager while performing observations. This gave us great insight into the style of bar and grill 7 West Taphouse strives to be and how customers really perceive them.

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Demographics

Basic Observations

Lunch (11:00AM- 4:00PM): During our observations, lunch time is when most of the business men and women would come in and enjoy a 7 West meal. We took note of the types of clothes that the customers were wearing, and in the chart above, you can see that during lunch time, 54% of people were in casual clothes, 41% were in a suit or business casual attire, and 5% did not fall into these categories (nurse scrubs, mail man, etc.). Only about 25% of customers ordered beer during the lunch hours. Dinner (4:00PM- 9:00PM): During the dinner hours whether it was a weekday or weekend, 86% of customers were dressed casually, 9% were dressed in business attire, and 5% did not fall into these categories. During the dinner hours, about 88% of customers ordered at least one beer while at 7 West.

Conversion Rate The conversion rate for 7 West was estimated to be 99%. When observing customers, nearly every person sat down and ordered food, a drink, or both. We believe that 99% is the best way to describe the conversion rate due to 1 or 2 people that would come in with a friend and just order water and nothing else. Even when there was a small line on Friday and Saturday nights, people would wait to get a seat instead of leaving and going to another establishment.

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Interception Rate 7 West Taphouse is excellent at customer service. As the general manager said, their customers continue to come back due to great, quick service. At 7 West, customers seat themselves and once seated, a server will come to their table as quickly as possible. While observing during lunch hours and especially during non-peak times, we observed that customers were greeted at their table within an average time of 30 seconds. When it came to busier hours, such as dinner on the weekends, the interception rate was closer to one minute. For those people who were waiting for a table, the bartender or manager would acknowledge their presence within 30 seconds of walking in. From what we observed, the interception rate was on average 99%.

Purchase Patterns Time Spent in the Restaurant When it came to customers spending time in the restaurant, there were a few different key observations that we could define. First off, the majority of people seemed to come in for a casual meal with friends, family, or coworkers, for an average dining time of 30 minutes. During the time spent at 7 West from these people, it showed to be purely for a relaxing meal and a great time to socialize, while maybe trying a refreshing craft beer. Another occurrence that was common when observing who was spending their time in the store was the “regulars”. It was obvious who these people were, because right when they walked into 7 West they were immediately greeted by a number of employees, usually by first name. These customers would tend to spend an average 10-20 minutes more time in the store compared to non-regulars. The main reason for this was that they would purchase multiple rounds of beers, while also consuming them at a much slower pace since they were talking with employees. Additionally, our observations found a third type of occurrence when it came to time spent in the store, takeout orders. Almost all of the customers that ordered takeout were in the store for no more than one minute. However, there were 2 circumstances we observed where the customer would come in to sit down and have a beer, and in the meantime order some takeout. Sales Interactions While completing our observations we found that the majority of questions that were asked were on the beer menu. Since it was impossible to listen to every observed customer’s questions we do not have any exact data on the questions asked. We found the information needed for this segment when interviewing one of the servers. The main questions people would ask are about bitterness

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or darkness of the beer that they considered ordering. These questions are good for 7 West because the tap house offers samples of beer to customers who are curious about taste. This allows customers to try beer before buying it, reducing any dissonance about how the beers differ from one another. While a lot of customers had questions about the beer menu, we did not observe many questions about the food. The food menu is complete with explanations of all of the burgers, wraps, wings, salads and sides. These descriptions are short and to the point. The do not have long explanations with big words making them tough to read and difficult to understand. The menu also clearly mentioned costs, burger add-ons, flavors of french fries, choice of sides and the option to substitute turkey or veggie burgers.

Store Experience Attention Grabbers When walking into 7 West, the first thing that customers see is a small walkway room where people are able to post flyers for events, advertise services, and keep the cold or warm air from entering the Taphouse. Once the customer walks through the second door, they will see the long bar directly ahead of them. If a customer sits at the bar, the next thing they will see is the large line up of chrome beer taps directly in front of them. Above the taps is a large flat screen TV that usually has on different sporting events. If the customer decides to sit at one of tables, their attention is also directed toward different TVs just above their heads. 7 West also sets the mood as a sports bar with pictures of beer hung on the brick wall along

with direct lighting to set the mood and neon beer signs that remind you that beer is what they do best. The selection of beer that is available out of the eye-catching taps is beer that cannot be found in most bars around the area. These specialty beers add hedonic value to appeal to those who are looking for quality and believe that they are only drinking the best beer. Another attention grabber of 7 West plays on the sense of smell. Customers will smell the aroma of freshly cooked burgers and fries in the open from their viewable kitchen where the staff are able to cook a burger in just two minutes. The burgers, fries, wraps, and sandwiches fill the customer’s utilitarian need to consume food.

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While the customers are waiting for their food or drinks, they tend to take in the whole place. They begin to look at the different deals on chalkboards above the bar, read the different types of beer on the beer menu, watch a sporting event that is being shown on one of the TVs, or talking to their friends or new acquaintances across from them. Signage 7 West Taphouse uses black chalkboards to advertise their kitchen hours, happy hours and other specials that the bar and grill has to offer. They have a total of four chalkboards hanging inside of the restaurant. Two of these boards are conveniently displayed above the bar on both sides of the TV. These boards display their kitchen hours and happy hour times. Additionally, these boards advertise other specials such as Monday Night Flights (four 5 oz. beers for $6.00), Kill-a-Keg (one free beer), “Sunday Funday” specials, and Nitro taps. The other two chalkboards are located above the cooking area. One of the boards advertises the Monday Night Flights more in depth, and the other board goes into brief detail about the “Sunday Funday” VIP Club, which includes $20 for a t-shirt, 2 for 1 Sundays, and one free potato with a purchase of a burger if wearing the t-shirt. Also, 7 West Taphouse usually has a chalkboard displayed outside of the store on the sidewalk to advertise specials or happy hour times to potential customers passing by.

Furthermore, 7 West offers apparel, which is all on display on the wall behind the bar. They offer shirts, hats and sweatshirts with their 7 West Taphouse logo, as well as their pint glasses available for sale. They have a list of prices for all items hanging on the wall next to the merchandise. Additionally, they display all their soda options in a unique way by having all soda cans sitting on a shelf on the wall behind the bar. Also, they have all beer bottles and cans, and wine bottles on display as well. They are positioned above the tap beer. This display of all beer, wine and soda options is a great, unique way for customers to see what is all offered at 7 West Taphouse; although, they do have a drink menu on all the tables as well. Overall, we felt that they have a good amount of advertisements inside of the restaurant that does a great job at capturing their specials. They give just enough detail that customers know what the specials entail without being too lengthy that it turns customers away from reading the board. It is also done in a way that is different from other restaurants in the area by having the signage on chalkboards. Positioning the chalkboards around the TV, above the bar draws a great amount of attention because customers are often watching sports on the TV centered between the boards. Positioning the other chalkboards above

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the cooking area draws a good amount attention as well because customers love the idea of watching the chefs make their food, and then they notice the chalkboards above. The only place in the restaurant we felt was lacking advertisements was the restrooms. Store Atmosphere 7 West Taphouse wanted to create the feel of a laid back, friendly, neighborhood bar and grill, which is exactly what they have accomplished. Duluth locals love the friendly staff and enjoy coming for this experience. The regulars love to stop in for lunch, and families and college kids find 7 West to be a great place for a laid-back dinner. By having a limited food menu and only serving beer and wine for alcohol (no hard liquor), 7 West has created a casual bar environment for customers looking for a place to sit back, relax and enjoy a nice burger and beer. Talking with the general manager, he stated that 7 West Taphouse considered selling hard liquor but decided against it because they don’t want to attract the customers that come along with those sales, and they have limited space. They want to remain a low-key bar versus a place for the late-night party crowd; they are never open past 1:00 AM. Doing this allows for a better environment for families and regulars, which is the type of welcoming feel they are going for. As put by the general manager, “better good at one thing than at many.”

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Recommendations

Recommendation #1: Premium Burger Current situation: 7 West Taphouse has 16 burgers on their menu. The burgers range from a base price of $3.59 to a price of $5.99. This means that there is a range of only $2.40 between the cheapest burger and the most expensive burger. In the data that we collected, almost 66% of the customers that we observed ordered a burger. This number excludes the 8 observed customers who ordered take out, which means that the number is probably closer to 70%. This means that 70% of the people in the store are comparing prices of burgers that only range $2.40 from cheapest to most expensive. This is a problem because when customers look at the menu, the price of a $5.99 burger doesn’t look like any better of a deal than the burger that is priced at $4.99. As a result the customer is likely to buy the $4.99 burger due to the extremeness aversion theory. This theory from chapter 2 of Influence says that consumers shy away from the more expensive product if they don’t see the value of the expensive product outweighing the cost. If the consumer compares the $4.99 burger to the $5.99 burger and doesn’t see any added value, their choice is easy, go with the cheaper burger. Recommendation: Provide a burger that is significantly more expensive than their current burgers but also has a lot of value to the customers. When talking with the manager, he mentioned that 7 West Taphouse is considering the idea of slightly raising their prices. Well, this recommendation can help them do so without sales declining. The burger should be slightly larger in size than their traditional burgers, but more focused on the burger being made with premium ingredients. The burger could be named something similar to the “Royal Burger” to create a prestige appeal. Along with an expensive name, the description in the menu must sound sophisticated as well. The description should include that the burger is made with locally sourced beef infused with a secret 7 West Taphouse spice recipe, the finest-Wisconsin cheddar cheese, fresh and locally grown vegetables

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to create the perfect toppings, and more. The burger should have a price that says “I’m better than the rest, and I’m worth the price.” A suggested price of $14.99 would seem appropriate because in a consumers mind, expensive usually equals good. Currently, customers may come to the Taphouse and may be turned off by the most expensive burger priced at $5.99 and opt for one priced a little lower, which is why the $14.99 burger needs to be added to become the new “expensive” burger. Justification: In chapter 1 of Robert Cialdini’s Influence book he describes the technique of perceptual contrast, which “affects the way we see the difference between two things that are presented one after another (Cialdini; p. 12).” For instance, just a slight difference between the “Royal Burger” and the other traditional burgers on the menu, will cause customers to see this burger as even more different and unique than it actually is. Additionally, the contrast principle says to sell the higher priced item first, which creates the idea that any lower priced items, even if they are a little expensive, aren’t actually that overpriced in comparison. This is why it makes sense to sell a higher priced burger and then paying $2.25 for fries doesn’t seem so bad. Or even better, having an expensive burger worth $14.99 makes a burger priced at $5.99 not seem as high. The extremeness aversion principle helps to understand this recommendation. This principle says that given the option between three differently priced items (low, medium and high), people don’t want to select the low priced option because it appears as cheap, but people also don’t want to select the high priced item because it seems too expensive. That being said, people are likely to select the middle priced item in comparison to the low and high priced items; therefore, the burger for $3.59 doesn’t sound appetizing, and the burger for $14.99 sounds too expensive for the average person, meaning customers will be more inclined to select that burger priced in middle at $5.99. The anchoring principle also emphasizes the need for a “Royal Burger.” This principle shows that having a high priced, luxury product on the menu will create the effect that all the other prices on the menu really aren’t that high. This is where the $14.99 burger comes into play. This burger will be seen as too expensive for the average person, but it is there to create the idea that the $5.99 burger isn’t quite as expensive as a person would have originally thought if the $14.99 burger wasn’t on the menu. Without this burger priced at $14.99, people see the $5.99 burger as the high priced item and tend to stray from it. This “Royal Burger” can help to bring customers up from buying the burger for $4.99 to the burger for $5.99. Lastly, the trade-off contrast principle says that adding a choice to the mix that people typically won’t purchase will influence a person’s choice of other options. Customers who come to 7 West typically aren’t looking for an expensive, superior quality burger. They are looking for a low priced, juicy burger. So, we are aware that that a burger for $14.99 won’t sell very often but it’s the fact

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that this expensive burger will influence which lower priced burger a customer will select. It will ensure that customers won’t opt for the lowest priced burger on the menu. It will make them more likely to select that burger for $5.99. Recommendation #2: Burger Challenge Current situation: 7 West Taphouse currently doesn’t offer any food challenges at their restaurant. They have a basic menu emphasizing on burgers. Every menu item is priced relatively low, and every burger is the standard size with one patty. Those customers looking for a heartier meal can add additional patties for $2.00 per patty. Additionally, extra burger toppings (lettuce, tomato, jalapenos, sour cream, cheese, dipping sauce, grilled peppers, garlic mushrooms) can be added for $0.50 or a $1.00 (bacon, fried egg, coleslaw, brown sugar bacon) per topping, and onions are the only free additional topping. Recommendation: We recommend that 7 West Taphouse add a burger challenge to their menu. Any winner of the challenge will receive a free Sunday Funday t-shirt made special for burger challenge winners to advertise their completion of the challenge. A possible name for this burger could be “The Taphouse Tapout” to give it that great challenge appeal. Since it’s the 7 West Taphouse, this burger has to be made with 7 of everything. 7 burgers, 7 layers of bun, 7 slices of cheese, 7 eggs, and all the toppings offered at 7 West Taphouse. This burger should be priced at an extreme level, such as $35.99. Justification: The social proof weapon of Influence from Robert Cialdini’s Influence book is a great way to justify this recommendation. The principle of social proof says people decide on their beliefs and the way to act by looking to others. The more people already involved in an activity, the more others will want to become a part of it. Social proof is the most powerful under uncertainty and similarity. When people are uncertain, they are more likely to accept what others are doing around them as correct behavior. Also, people are more likely to do things that people similar to them are doing. That being said, after the first few people get a free t-shirt and their picture on the wall, others will be sure to follow.

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People will see their friends’ faces on the wall, and they will want the same. Social image maintenance says that no one wants to feel like the odd one out. To take away the factor of uncertainty when the burger challenge first gets introduced, 7 West Taphouse could have a few employees try the challenge or ask specific customers, who they know will stand a chance against the challenge, to try it just to get the word-out and to ease the uncertainty of other customers. Having a few pictures on the wall to start will ensure that other customers see this as the right behavior. Processing efficiency says that following a crowd requires less thought and allows people to make fewer errors. Due to the scarcity principle, we feel that 7 West Taphouse could draw in more customers who want to attempt the challenge, as well as their friends who want to watch because the burger challenge would be a new, hot commodity for Duluth citizens. According to the scarcity principle, “people assign more value to opportunities when they are less available (Cialdini 2009; p. 225).” Additionally, when things are hard to obtain, they hold more value. Being that this is a challenge, it’s intended to be difficult to complete, which would make it more enticing to customers. Also, when something is scarce, people start to assign that product more positive attributes than they normally would. One way to capitalize on the scarcity principle is by only allowing a certain number of challenges to be completed in one month. This would employ the limited number tactic of scarcity. This increases the immediate value of a product when consumers find out their freedom has been slightly diminished in terms of this opportunity. Customers won’t want to miss out.

Recommendation #3: Delivery and Quantity Discount to Downtown Businesses Current situation: Workers from downtown businesses already frequently visit 7 West Taphouse, but these workers are often too busy to walk to 7 West for a sit down meal; although, they love the food and the low prices. The fact that Pizza Luce is the only one of their main competitors that has a delivery service, 7 West Taphouse has a great opportunity here. From our observations we calculated that 41% of all lunchtime customers who come into 7 West are business men and women from the downtown area. Recommendation: Being that 7 West Taphouse is located downtown close to many businesses, including Minnesota Power, it would be a great idea to implement a delivery service to this area. We recommend that 7 West offer delivery service to downtown businesses, and to one up Pizza Luce, offer a discount on an order of 7 burgers or more. This would ensure that those customers who are craving a 7 West Taphouse burger but don’t have the time for a sit down meal or the walk to 7 West is too far, that they could still get the food they

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want. Additionally, providing the quantity discount would ensure that the cost of delivery would be compensated by the large quantity of burgers purchased.

Justification: Robert Cialdini’s Influence: Science and Practice says that with the rule of reciprocation can be a great influence technique. People who receive a special discount, such as downtown businesses, will feel obligated to repay the favor. Being that 7 West will be exclusively offering a discount and delivery service to these downtown businesses, these businesses will feel obligated to give more return business to 7 West Taphouse. Not to mention, workers in the downtown Duluth area are 7 West’s primary target market. They will be able to cater to the customers they already greatly value and draw in more loyal customers, especially by implementing the quantity discount. If 7 West wanted to put the reciprocation weapon of influence to even better use, from time to time they could send a few orders of apple fritters,

on-the-house, with the orders that greatly exceed the quantity discount. Customers will see this as a “special” gesture just for them and feel the need to thank 7 West by staying loyal to them the next time they are looking to eat out. The social proof weapon of influence is also an important factor for this recommendation. This rule says that a group of individuals can change the attitudes or behaviors of a single person. Pluralistic ignorance shows that when a person is unsure, they look to others about what you should be doing; therefore, when people are individually looking to order lunch and are unsure of what to order, they are going to start looking at one another as what they should be doing. This will cause them all to group together to order food. Also, processing efficiency says that when a person follows a crowd, they make less errors and it takes less thought. When a worker is coming around taking orders for a delicious burger, others are going to become more inclined to follow suit and order a burger versus straying from the crowd and putting in the effort to order from another restaurant. Furthermore, no one wants to look or feel out of the loop at work so as social image maintenance says, this will also cause workers to follow the crowd. No one wants to look like the “bad guy” for going against what his or her coworkers are doing. Following conformity, hearing a bunch of coworkers raving about a delicious 7 West Taphouse burger, may cause an individual to change their behavior or beliefs due to pressure from others. This will make them more inclined to order, and also cause them to enjoy the burger more than if they were eating it alone. The commitment and consistency principle says that once these workers commit to buying 7 West Taphouse burgers for delivery and at a discounted price, they will feel the need to stay consistent with “their words, beliefs, attitudes and deeds (Cialdini 2009; p.95).” Being the 7 West is giving them such an exclusive deal, following along with reciprocation, these businesses will feel that they need

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to continue ordering 7 West over other restaurants and stay loyal to them. They may feel that they are being watched by the public eye, and straying from 7 West Taphouse will bring negative attention and show that they were ungrateful for the exclusive services provided by 7 West. Lastly, the authority principle may come into play. This principle says that there is “strong pressure in our society for compliance with the requests of an authority (Cialdini 2009; p. 195).” Systematic socialization practices says that it is instilled in a person of society that they must obey to authority or face negative consequences. If someone of higher authority in the business is coming around taking orders to place at 7 West Taphouse, a person of lower status may be more inclined to order because they don’t want to go against an authority figure. This will increase the amount of burgers sold.

Recommendation #4: $5.00 Voucher on Receipts Current Situation: 7 West has very basic receipts that just say the name of the establishment, food and drinks ordered along with their total, tax, and the server’s name. They do not have any type of vouchers available for a discount on either food or drinks. They do have a lunchtime burger punch card that after 7 burger purchases, the next one you order during lunch will be free. Also, aside from happy hour and

nightly specials, there is a “Sunday Funday” t-shirt that customers can purchase, and if they wear it on Sundays at 7 West, they can take advantage of special offers. The closest promotion that they have is the text club where the customer can text a number to become part of the club, and certain times of the year, a deal will become available for a short amount of time and only for one time use. Recommendation: Put a message on the bottom of every 75th receipt that tells the customer to take a short survey on the 7 West Taphouse website to receive a voucher that is good for $5.00 off of their next purchase within 30 days of the date on their receipt. They will be able to use this voucher on food or drinks only and can only use one voucher at a time.

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Justification: With this promotion, 7 West could use the influence of reciprocation on the customers that receive the receipt with this message for a $5.00 voucher. The rule of reciprocation “allows one individual to give something to another with confidence that it is not being lost (Cialdini 2009; p. 49).” In the case of this opportunity to receive the voucher for their next purchase, this will make the customer more inclined to re-visit 7 West and purchase a burger or beer since they were generous enough to give them the opportunity to save money. Also, when someone has this voucher, they are more than likely going to bring their friends or family along to the Taphouse which will give them even more business. Another principle that this voucher coincides with is the scarcity principle from Robert Cialdini’s book, Influence: Science and Practice. The scarcity principle again states that “people assign more value to opportunities when they are less available” (Cialdini 2009; p. 225). Within this chapter, Cialdini also points out that if there is a time limit on something, people feel the sense of urgency to take advantage before it is too late and the deal is gone. By giving the customer 30 days from the date on their receipt to use the $5.00 voucher, it will have a much larger effect on these people to come back and purchase more food and drinks before the 30 days runs out. Adding a survey on the back of the receipt is another thing 7 West could take advantage of. They will be able to gain some valuable information by gaining insights on things such as: customer experience, service quality, food and beverage satisfaction, etc. They could also ask customers to submit a new burger idea or suggestions for 7 West to think about implementing. This voucher may also instill a kind of brand loyalty within the customers that receive it. The more times that a customer returns to 7 West and continually having good experiences, the more likely they will fall into a habitual decision making process in which they do not seek out other alternatives for places to go and get a beer or burger. This also has to do with brand inertia, which is “what occurs when a consumer simply buys a product repeatedly without any real attachment” (Babin and Harris 2009; p. 219). By using this voucher and getting the customer to come back again, a perception and habit will form in the customer’s mind and they will be more inclined to return to 7 West when they are craving a good burger or beer. The implementation of this promotion will help with increasing customer satisfaction, sales, and knowledge of the customer experience.

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Recommendation #5: Combo Pricing Current Situation: Anytime someone orders their meal they have to choose an entree with a side, separately. The menu is laid out by first listing all of the Burgers in order of ascending price, and then your choice of sides. The list of sides states that you get to pick your choice of fresh cut Taphouse fries or chips, then lists off the different flavor options before finally showing the additional price of adding your choice of a side. Listing the price of the sides this way almost comes off as deceitful, because if you don’t read the menu thoroughly, you might not even notice that there is an added price for choosing your side. When it comes time to pay the bill and you see that it costs an extra $2.29 for a fairly small portioned side, you are leaving the restaurant with a negative attitude that may costs 7 West any future business with that customer. Recommendation: Offer a combo deal with every burger by including either a starter or dessert, and your choice of fries or chips. This would give the consumer the option right away to see that they can include a side and a starter for a special price while they are looking over all the options. The price per combo would change slightly for the more expensive burgers, but this combo option would make the consumer feel that added value when making a decision. Justification: By changing the menu options and offering a variety of combo options, it reveals a source of value to the consumer that wouldn't have been there otherwise. In Paco Underhill’s book, “Why We Buy”, he touches on the concept of the “value equation” a consumer has with them whenever they make a purchase. They look at multiple criteria when making a decision, which can include criteria such as quantity, quality, appearance, ingredients and price. All of these things put together is what Paco calls the “value equation”, and depending on how each individual perceives the added value of any desired product will ultimately lead to their chosen purchase. With the perceived added value from creating a combo option, the consumer will be more likely to purchase that option. They will decide that the added value of ordering a combo option will be of greater benefit to them, rather than purchasing on a single item that might not fill them up.

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Once this combo option is added to the menu, 7 West could then make it even more appealing and influence the consumer’s decision by implementing the scarcity principle from Robert Cialdini’s book, Influence: Science and Practice (Cialdini 2009; p. 198). In order to implement this principle, the menu could say something as simple as “for a limited time only” or “get it while it lasts!” This will peak the consumer’s interest into thinking twice about their decision, and even reduce the probability that they will experience dissonance due to the added value they will perceive from the combo choice.

Recommendation #6: Advertisements in Restrooms Current Situation: 7 West has a wide selection and variety of signage both in front of the store and throughout the store itself. These signs create positive and informative information about the store and the products that they serve. While 7 West does a good job promoting and

advertising around the store, it is nearly impossible to consume all of the information and advertisements around the store. Unless your sole purpose for entering the store is to read everything on the walls and windows, the odds that you catch every ad and sign in the store is slim to none. While they do a great job throughout the dining area, during our observations it was clear that 7 west lacked advertisements in the restroom areas. There were no advertisements, promotional flyers or any informational posters at all in the men’s or women’s restrooms. Recommendation: Create advertisements and promotional flyers that are specific to the restrooms. Place these advertisements on the back of the restroom door at eye level when leaving, over the urinals in the men's bathroom at eye level, and on the inside of stall doors in the men’s and

women’s rooms. These ads will have information about the beer and burgers offered, specialties for the day/month, information promoting the stores loyalty program, fun things to do around the city of Duluth, or information about the store history. Justification: In Paco Underhill’s Call of the Mall book he mentions that restrooms are a key place for improvement in any retail facility. “You’ve got a captive audience, one that will probably spend at least sixty seconds or so with nothing much to see or hear, the retailer does

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nothing to fill these empty moments” (Underhill 1999; p. 73-74). This is why we believe the restroom is the perfect place to advertise the food, products or clubs 7 West has to offer. Underhill also states in the Call of the Mall book, a crucial question, “why has no one ever considered using this (restrooms) as a kind of showroom for the things that they sell in their store, twenty-five feet away?” (Underhill 1999; p. 74) By creating advertisements that are bathroom specific, it gives 7 West the opportunity to isolate an individual and capture their undivided attention. Throughout class, during the perception and comprehension section, we learned that there are many stimulus selection factors that determine the focus of a consumer's attention. One of the biggest of those factors is contrast, that is, how an ad is contrasted with its surrounding. While 7 West has many advertisements and signs in the restaurant area there are a lot of things going on around these attention grabbers. People talking, people walking, the multitude of ads around, the music and friends at your table all take attention away from these signs and make it difficult to bring attention to one spot on the wall. While this is a challenge in the dining area, there would not be many of these things in the bathroom. Its calm, not many people around, if any, no one to talk to and not a mirage of ads on the walls. The ability to capture and retain attention in the bathroom is much easier because of how the ad would contrast with its low context surroundings. Another topic we studied during our perception and comprehension section of the course this semester was about the personal factors that affect attention. One of the five personal factors that affect the attention status is involvement. Involvement is the desire for a product for a specific physical need, or a desire for more information about a product. A low involvement customer would be a customer who has no physical need to eat at the moment and no informational need for the product. This would be a person who sees an ad at the mall while they were shopping for clothes. Being that a customer in the restrooms has already selected to walk into 7 West, their involvement level with the restaurants products is already high, creating a physical need for food or drink and a want for more information. Another one of the personal factors affecting attention is time. The amount of time an individual has greatly affects their willingness to pay attention. If a person is on the go or is late for a meeting walking fast down the sidewalk, the probability that they will stop and take the time to read an ad is slim to none, because time is a scarce resource. In order to take advantage of a person’s attention you have to connect with them when time is not a scarce resource. Whether a customer is standing at a urinal or sitting on a toilet, time at that point cannot be a factor for them because they can’t just ignore their need for a restroom. Like Underhill says we can and should take advantage of the down time a person has in the restroom. This down time and low context atmosphere allow a customer to observe an ad and pay attention to the information from it.

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Appendices

Appendix A: Interview with Manager - Sam Fladeboe Who is your typical customer?

● Middle aged, parents with kids that are grown up out of the nest. ● Come on a regular basis two to three times per week.

Three main reasons an individual would come in: 1. Proximity: We are close to downtown. 2. We have cheap food 3. Beer Selection: there is an ever changing selection of beer. There is always a different beer every day.

1. Proximity: Why here and not somewhere else?

● Not connected to skywalk but two doors down – a customer would barely have to go outside. ● There aren’t a whole lot of lunch options downtown with good value; I think we have one of the best values and service.

Good value? ● We have fresh food and we have it at a reasonable price ● People could do McDonalds or Burger King but that’s frozen and you can definitely tell a difference. Everything we do here is

fresh at 7 West. ● You can’t beat their prices here. Our entire menu is happy hour; it’s cheap.

Why do they value fresh food? ● Our burgers are not organic, but society is thinking more and more about what they are eating and putting into their bodies. ● People come here for some of the same aspects; our food is quick and fresh as well.

Why fresh food? ● Again, fresh is more of a healthy choice in the customer’s eye. ● Fresh food tastes better and there is more flavor. This is just my opinion but a lot of others would agree with me. ● Our buns are also fresh, along with fresh meat.

Why more health conscious? ● As I said, it’s the way things have been trending. ● I think with movies like Supersize Me, more people are aware of what they are eating ● Also think that People care. They care about the future and are trying to raise their children differently.

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● People are becoming overweight and do not want to be. Why don’t people want to be overweight?

● I believe that everyone cares about their appearance, plus more people are exercising as well. ● It is more than just eating healthy it is a whole lifestyle change.

Why are people changing lifestyles? ● Again, people care about what others think of them. ● I think almost everyone gets a craving that wants to be filled and it is multiple times a week, so I think that they want to make

up for that in how they live. (workout and healthy eating) 2. Cheap Food Option Why a cheap food option?

● The economy is poor, times are tough. ● Winter is hard in Duluth. It’s been so cold this winter and people are paying higher gas bills. In the summer, people in the

service industry are trying to make more money. ● I think it’s fun and cheap here

What are they spending their money on outside of here? ● Honestly, I think a lot of spending is at other bars or the liquor store. ● People that come here want to go out on weekends and have a good time. ● I think people are also spending money on entertainment like movies or sporting events.

What do these customers view as important? Their values as an individual? ● They value friendship. ● They value the night life. ● They enjoy entertainment. ● Our customer’s Ideal age would be like 42.

Goals and ambitions? ● Happiness is a big part of their ambition. ● They also want to have a good time and be together with friends and family.

Why do they like the social experience? ● I think the social experience is fulfilling to an individual. It fulfills the need to feel relevant and wanted. ● You can express yourself as an individual.

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3. Beer Selection Why the ever changing beer?

● We actually only have one domestic on tap. ● Our customers are beer connoisseurs and enjoy new microbrew beers. ● People come in and ask what new beer is available? ● People want to learn more and try something new.

Who are they trying to impress in life? ● I think our customers want to impress friends and family ● They want to cater mainly to the people that they love

What about impressing Coworkers? ● Not really, I think it is more the people closest to them.

Can people be influenced to come by other people in their social groups? ● Yes, people almost always come in in groups, rarely ever alone. ● A lot of the times it is the same people, day after day. ● I would consider a lot of customers brand loyal. ● I can almost predict when some people are going to come in

Why are they so easily influenced? ● They want to appeal to social group, friends, family, coworkers

Why is appealing to a social group important to them? ● Fit in. Become a part of a circle. People to go out with.

What’s so important about fitting in? ● When a person fits in they feel better about themselves as an individual. When they feel better about themselves maybe they

perform better at their jobs. Why is it important to do well at their jobs?

● Make good money - Have nice things that make them feel confident. Additional questions: Dress of ideal customer?

● People dress very casual: Duluth casual, Flannels and jeans. ● During lunch time we see more business folks with suits and ties ● During the weekend there is a totally different dress style.

Perfect day for the individual?

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● Our customers would go to work at Minnesota power ● Come in for lunch or after work for a few drinks ● Then go home to get a good nights rest

More people during lunch? ● A lot of people during lunch then lull until after work ● Pretty even amount of people during both times ● But more people buy beer during dinner or weekend lunch.

Overall thoughts? ● A lot of people rave about our service. ● The enthusiasm of our staff is always a plus. ● The front and back of our house is in the open, so customers can see our cooks. ● Overall the staff is one of the main reason the business is doing well.

Pick two, great service, great price, or great quality of food? ● If I had to choose I would probably pick good service and quality of food.

Appendix B: Laddering - Customer #1 Why does this customer come to 7 West?

● Convenience. ● Social experience. ● Satisfy hunger and thirst.

1. Convenience Why is it a convenient option?

● Close to canal because you like you like the options available in that area ● Like the options in Canal park because the places have unique beer and happy hour specials. The social environment. ● Price for happy hour special. Likes a social environment of taphouse because it’s casual bar scene, with peers vs. Red

lobster is more for a date. ● Good value (benefits > costs)

Why do you value low prices? ● Have a college budget

What do you spend money on other than food? ● clothes

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● car ● entertainment ● beer

Why are these other things of value to you? ● Car for transportation (Trailblazer - low gas mileage)

Why do you care about entertainment and clothes? ● Entertainment - stress relieve ● Clothes - like to wear nice clothes and look good

Why do you like to look good? ● Girlfriend influences

Why you let your girlfriend influence your opinions? ● She has a good style sense. He likes how she dresses, she always dresses nice. She cares about her social perception

Why is social perception of value to you? ● Feedback on himself ● Feel better about self?

○ Feels he stands out more. ● Why stand out more?

○ When people notice you and comment it makes you feel good. ● Why do you want to feel good?

○ When you feel good it boosts your confidence 2. Social experience Why do you think 7 West is a good social experience?

● Not a standard go to ● Always different crowd and it’s a nice change up ● Have the most beer in Duluth

Why do you like the change up of a different crowd? ● Not too many places in Duluth that have a cheap burger and unique beer ● Likes to just eat and enjoy peers company ● More of a social environment to hangout with friends ● Maybe run into other people you know

What’s important about socializing with friends in this setting?

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● Catching up with each other and have fun ● Change of friends since freshman and sophomore year ● Friends separate a lot ● It’s more of make a plan with old friends

Why do you value relationship with old friends? ● Why stay connected? ● Don’t get to talk or see them on a day to day basis anymore

Why do you value them as friends? Why do you want to keep them as friends? ● Been through crazy stuff together. Benefit from them. Nice to see and catch up with old friends

Why do they feel the need to interact and connect with these peers? ● Feels guilty if you don’t talk to them for awhile

Why would you feel guilty? ● Not talking to each other for a while ● Bad assumptions may come. (Ex: Think that I do not enjoy their company but I am a lot busier than before.)

Why don’t you want these bad assumptions? Do you care about how they perceive you? ● Doesn’t want to be perceived as not caring ● He cares how his friends think about him if they don’t stay connected ● Shutting each other out isn’t the case

Why do you care about how people perceive you? ● He feels better about himself if others enjoy being with him

3. Satisfy hunger and thirst Why is 7 west a good option for this?

● Cheap, quick, convenient Why are those attributes important?

● Poor college kid and little time ● Not close to house but he doesn't typically eat greasy foods but sometimes you get that craving

Why don’t they typically eat greasy food? ● Likes healthy food ● Ate too unhealthy freshman year and realized how much it can affect you and now he’s health conscious

Why you like about what the healthy food does for you? ● Doesn't feel bad physically when eating healthy

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● Nicer skin ● Know that you're putting good things in your body

Why is nice skin and nice figure important? ● Doesn’t want to gain weight and acne looks bad

Why wouldn't you want to gain weight? ● Social perception of overweight people ● Society

Why does the perception of society matter? ● Cares about what people think of him especially people he knows

Why do you mostly care about the opinions of the people you know? ● Don’t want them to challenge his identity ● Who he is ● They aware that you gained weight compared to a stranger not noticing because they didn’t know him before ● Strangers opinion doesn’t really matter to him ● Friends and family can notice the change. They would know that you were skinny before

Appendix C: Laddering - Customer #2 What do you like about the 7 West? (Why?)

● Wide selection of good beer. Good, cheap food. Inviting atmosphere. How long have you been going to 7 West?

● Gone about 10 times Why do you think it is a good value for the price?

● Quick service with good food. Decent selection for a cheap price. How frequently do you use visit 7 West Taphouse?

● 1-2 times a month What would it take for you to switch? (Why?)

● A decline in service and quality of food and beer ● Or if I were to find a place that offers similar qualities that I find more appealing ● If price were to increase ● Why? On a budget but looking for decent quality food

What other places would you consider going to instead? (Why?) ● Pizza Luce, Fitgers, Carmody’s, Green Mill.

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● (Why?) Change of atmosphere, Different food selection, Better Deals. Key attributes:

1. Cheap prices 2. Quick, good service 3. Selection of beer

1. Cheap prices: Why do you prefer to frequently visit a place with cheap prices?

● Get more food or beer for a cheaper price than I would get the same food at a different place. Everyone is on a budget - the economy.

If you’re on a budget, what are you spending your other money on? ● Books, bills, rent, car problems, entertainment (movies, bars, etc.)

Why save more money for entertainment than on food? ● Already like the product at 7 West and that’s its cheap is a plus.

What’s so important about bars and nightlife entertainment? ● See friends and interact with other people

Why do you want to interact with other people and friends? ● It’s nice to talk with other people - basic need for communication. See what other people are doing with their lives

Why does that concern you what others are doing with their lives? ● Because they are my friends and I care about their wellbeing. Internal satisfaction - knowing that you are accomplishing as

much if not more than other peers. Why do you feel the need to accomplish as much or more?

● Want to be at the same point as everyone else. If you’re way lower than you’re going to feel bad but if you’re way higher than you don’t want to make them feel bad by bragging.

Why is it important to succeed in life? ● That’s what I was always taught to do. Parents pushed me to do well - especially grades. Drove me to realize that it does

matter how good you do. Why would your parents drive you to get good grades?

● Mom went to college and dad went to tech school. Parents want him to do better than what they had. In the end what does good grades get you?

● Try hard in things you find important such as school is important because you want to earn a living.

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What’s important about having a good living? what would you want to make? ● Starting around $40,000 graduating

What would you say is a good living? Ideal life? Later in life down the road? ● $180,000 - $200,000 house in a mid-sized town with a good job and a family. Live the American dream.

Why the American dream? What’s so appealing about it? ● Seems like a good thing to aim for. Something to look forward to.

Why American dream vs. a low income life? ● Striving for excellence. Human nature to always want something better.

Why do you want better? ● Haves goals in life. Society creates an appeal for living an average lifestyle.

2. Quick, good service Why do you value this?

● Fast paced lifestyle. What others things are happening in your life?

● Pressure to find a job is becoming greater. Want to use my time efficiently. Why is your biggest concern a job?

● To support myself and not have to go back home and rely on my parents. What’s so important about not relying on your parents anymore?

● Feel guilty relying on them. Don’t want to waste their money any longer. Why do you value their money?

● They should be able to spend their money doing what they want because they are close to retirement age. Time for me to start taking care of them will come around soon.

Why you care about your parent wellbeing? Why do you care what they do with their money? ● Rightfully theirs. If it was me I wouldn’t want my kid to come back and suck my money like the movie “Step Brothers.”

So do you cherish your family? ● Yes. They want me to do good and I want them to do good and have money to live the way they want.

Why is it important for them to live the way they want? ● It’s good to enjoy live before the end comes.

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3. Selection of beer Why is this important?

● To try new things. Get things I can’t normally get in most other bars. Do you usually experiment?

● With food and beer yes I try a lot of different stuff. What do you like about the experience of trying new things?

● Usually comes from someone telling me to try this beer that they think is really good so I need to try it out for myself. Or watching food shows and wanting to try those unique things. Wanting to experiment while I have the opportunity.

What's important about experimenting? ● Like to be able to have choices. May miss out on the opportunity if I don’t do it while I have the chance.

What's the importance of using these opportunities to their full advantage? ● Might not get to do it again. Only have one time to live your life. Might as well live it to the fullest. Everyone has food in

common, everyone has to eat, but different places have different options and experiences. Maybe a way to connect. Value you get from experimenting than sticking with the regular?

● Broaden your knowledge. Doing something over and over you get the same result. If you do things differently, stuff can change.

What are some things you want to experience in life while you have the chance? ● Travel outside of the U.S. Adrenaline rush - sky diving. Deep sea fishing. Have a career that I actually enjoy.

What’s the value of doing these things vs. living a quiet life? ● A lot more fun and a quiet lifestyle isn’t appealing. Being adventurous vs. being stuck in the same thing all the time. Don’t like

doing one thing every day, all day. Like to experience all the opportunities that life has to offer. Seems like a waste to not try new things and learn as much as you can.

35

Appendix D: Observations Record

DATE TIME GENDER AGE FOOD PURCHASED BEVERAGE(s) PURCHASED

TICKET TIME OBSERVER ATTIRE

3/29/2014 5:09PM - 6:16PM 2 Males, 2 Females 22 4 burgers with fries 6 beers, 2 waters 11 mins Rachel Casual

3/29/2014 6:19PM - 7:05PM 3 Females 25 3 burgers with sweet potato

fries 3 waters, 1 soda 10 mins Rachel Casual 3/29/2014 6:51PM - 7:56PM 4 Males 30 4 burgers with fries 8 beers 10 mins Rachel Casual 4/5/2014 5:00PM - 5:25PM 1 Male 23 1 Burger with fries 2 beers 9 mins Colby Casual 4/5/2014 5:15PM - 5:30PM 2 Males 25,25 none 2 beers None Colby Casual

4/5/2014 5:30PM - 6:30PM 3 Males, 1 Female 25,30,30,

30 4 burgers, 3 fries, 1 chip 6 beers 12 mins Colby Casual 4/5/2014 6:00PM - 6:50PM 2 Males 23,23 2 burgers with fries 5 beers 8 mins Colby Casual

4/12/2014 7:00PM - 7:37PM 2 Males 25,25 2 burgers with fries 4 beers 8 mins Jesse Casual 4/12/2014 7:05PM - 7:41PM 2 Females 21,21 1 burger with fries, 1 wrap 1 beer, 1 water 7 mins Jesse Casual 4/12/2014 7:30PM - 8:18PM 1 Male 30 1 Burger w/fries 2 beers 5 mins Jesse Casual

4/12/2014 7:42PM - 8:34PM 2 Males, 2 Females 21,23,23,

30 4 burgers, 2 with fries, 2 with

chips 6 beers 10 mins Jesse Casual 4/12/2014 8:00PM - 8:41PM 1 Male, 1 Female 25,25 None 4 beers None Jesse Casual 4/12/2014 8:18PM - 9:00PM 2 Males, 1 Female 35,35,40 3 burgers with fries 3 beers, 1 water 9 mins Jesse Casual

4/14/2014 11:05AM - 11:30AM 2 Males 40 2 burgers with fries 1 water 7 mins Jesse White Collar

Worker 4/14/2014 11:15AM - 11:50AM 1 Male, 1 Female 65,60 2 burgers with fries 1 beer, 1 soda 8 mins Jesse Casual 4/14/2014 11:40AM - 12:15PM 1 Male, 1 Female 25,25 2 burgers with fries 1 water 7 mins Jesse Casual

4/14/2014 11:48AM - 12:25PM 3 Males, 1 Female 30,30,30,

40 4 burgers 2 with fries, 2 with

chips 2 waters, 2 soda 10 mins Jesse Casual

4/14/2014 12:00PM - 12:38AM 3 Males 25,27,28 3 burgers with fries, 1

appetizer 6 Beers (2 each) 9 mins Jesse Casual 4/14/2014 11:13AM - 11:47AM 2 Males 25,25 2 burgers with fries 1 water, 1 soda 7 mins Rachel Casual

4/14/2014 11:43AM - 12:26PM 4 Males 65 4 burgers with fries

2 sodas, 1 lemonade, 1

water 9 mins Rachel Casual 4/14/2014 11:52AM - 12:01PM 1 Female 47 1 take-out meal None 9 mins Rachel Casual

36

4/14/2014 11:59AM - 12:37PM 1 Male 32 1 double burger with chips 1 soda 11 mins Rachel Casual

4/14/2014 12:02PM - 12:42PM 2 Males 25,30 1 burger with fries, 1 burger

with chips 1 water 12 mins Rachel Business 4/14/2014 12:06PM - 12:09PM 1 Male 40 1 take-out None 3 mins Rachel Business 4/14/2014 12:13PM - 12:15PM 1 Female 35 1 take-out None 2 mins Rachel Business

4/15/2014 3:47PM - 4:21PM 1 Male 50 1 burger with fries 1 beer and 1

water 5 mins Cody Casual

4/15/2014 3:55PM - 4:30PM 1 Male 40 1 burger with fries 1 soda 5 mins Cody Business Casual

4/15/2014 4:00PM - 4:21PM 2 Males 45,18 2 burgers with fries 1 beer and 1

water 5 mins Cody Business, Sweats

4/15/2014 4:05PM - 4:15PM 1 Male 40 None 1 beer and 1

water None Cody Running Clothes

4/16/2014 11:50AM - 12:10PM 1 Male, 1 Female 23,23 None 1 water, 1 soda None Jesse Casual

4/16/2014 12:00PM - 12:40PM 2 Females 40,35 2 burgers with fries 2 waters 8 mins Jesse Nurse Scrubs

4/16/2014 12:04PM - 12:20PM 1 Male 22 1 burger 1 water 4 mins Jesse Casual

4/16/2014 12:04PM - 12:45PM 2 Females 28,30 2 burgers, 1 with fries, 1 with

chips 2 waters 9 mins Jesse Casual 4/16/2014 12:18PM - 12:25PM 1 Male 30 1 take-out none 7 mins Jesse Business 4/16/2014 12:20PM - 1:10PM 2 Males 60,50 2 burgers with fries 2 waters 7 mins Jesse Business

4/16/2014 11:55PM - 12:19PM 2 Females 45,45 1 burger split with sweet

potato fries 1 beer, 1 diet

soda 6 mins Rachel Casual

4/16/2014 11:59PM - 1:19PM 2 Males, 1 Female 55,55,50 2 burgers with fries, 1 burger

with chips 1 diet soda, 1

water 8 mins Rachel

Business Casual - Meeting

4/16/2014 12:07PM - 12:25PM 1 Male 35 1 burger wrap 1 water 7 mins Rachel Mailman - Regular

4/16/2014 12:10PM - 12:12PM 1 Male 45 1 take-out None 2 mins Rachel Business Casual

4/16/2014 12:10PM - 12:50PM 1 Male, 1 Female 40 1 burger with chips, 1 burger

with fries 1 soda, 1 water 9 mins Rachel Business

4/16/2014 12:32PM - 1:05PM 1 Male, 1 Female 65,70 2 burgers with fries 2 beer samples, 1 beer, 1 water 5 mins Rachel Casual

37

4/16/2014 12:45PM - 1:11PM 1 Female, 1 Male 30,40 1 burger with sweet potato

fries, 1 burger 1 cider beer, 1

Summit 6 mins Rachel Casual,

Business 4/16/2014 1:04PM - 1:04PM 1 Female 30 1 take-out None None Rachel Casual 4/16/2014 1:02PM - 1:35PM 1 Female, 1 Male 25 1 burger with fries 2 sodas 4 mins Rachel Casual 4/16/2014 1:18PM - 1:21PM 1 Female 20 1 take-out None None Rachel Casual 4/17/2014 6:05PM - 6:41PM 1 Male, 1 Female 22,22 2 burgers with fries 1 beer, 1 water 7 mins Cody Casual

4/17/2014 6:05PM - 6:45PM 2 Females, 1 Male 30,30,35 1 salad, 2 burgers, 1 with

fries 3 beers, 2 waters 8 mins Cody Casual

4/17/2014 6:07PM - 6:52PM 2 Males 45,50 2 burgers with fries 2 beers 6 mins Cody Business Casual

4/17/2014 6:50PM - 7:30PM 3 Males, 1 Female 50,12,15,

45 3 burgers, 2 with fries, 1

salad 3 sodas, 1 water 8 mins Cody Casual 4/17/2014 6:55PM - 7:48PM 1 Males, 1 Female 28,30 2 burgers with fries 2 beers, 2 waters 6 mins Cody Casual

4/18/2014 5:00PM - 5:43PM 2 Males, 2 Females 30,30,40,

35 1 appetizer, 4 burgers, 2 with

fries, 2 with chips 2 beers, 1 water,

1 soda 8 mins Jesse Casual 4/18/2014 5:00PM - 5:30PM 1 Male, 2 Females 25,40,15 3 burgers with fries 3 waters 6 mins Jesse Casual 4/18/2014 5:10PM - 5:40PM 2 Males 25, 30 2 burgers with chips 4 beers 6 mins Jesse Casual 4/18/2014 5:40PM - 6:15PM 2 Males 35,40 2 burgers with fries 2 waters 5 mins Jesse Casual 4/18/2014 5:50PM - 6:45PM 1 Male, 1 Female 55,55 None 4 beers None Jesse Casual 4/18/2014 6:05PM - 7:00PM 1 Male 25 1 burger with chips 1 soda 4 mins Jesse Casual 4/18/2014 3:30PM - 3:55PM 2 Females 45,45 2 burgers with fries 3 beers 10 mins Colby Casual 4/18/2014 5:30PM - 6:05PM 1 Male, 1 Female 55,55 2 burgers with fries 2 waters 9 mins Colby Casual 4/18/2014 5:35PM - 6:50PM 1 Male 30 1 burger with chips 3 beers 5 mins Colby Casual

4/18/2014 5:40PM - 6:30PM 1 Male, 1 Female 38,38 2 burger, 1 with fries 1 with

chips 4 beers 9 mins Colby Casual 4/18/2014 6:00PM - 6:05PM 1 Male, 1 Female 60,55 None None None Colby Casual

4/18/2014 6:05PM - 6:40PM 3 Males 25,25,25 3 burgers with fries, 1

appetizer 3 beers, 1 water 11 mins Colby Casual

4/18/2014 6:05PM - 6:55PM 4 Males 25,30,30,

35 4 burgers with fries 6 beers, 3 waters 13 mins Colby Casual 4/18/2014 6:15PM - 6:50PM 2 Males, 1 Female 25,25,25 2 burgers with fries, 1 salad 2 beers, 1 water 8 mins Colby Casual 4/18/2014 6:45PM - 7:30PM 1 Male 35 1 burger with chips 2 beers 7 mins Colby Casual 4/19/2014 11:30AM - 11:56PM 2 Males 26,27 2 burgers with fries 2 beers, 2 waters 5 mins Cody Casual

38

4/19/2014 11:30AM - 12:03PM 2 Males, 1 Female 45,40,20 1 appetizer, 2 burgers with

fries, 1 salad 2 sodas, 1 water 6 mins Cody Casual 4/19/2014 11:38AM - 12:05PM 1 Male, 1 Female 22, 23 2 burgers with fries 2 beers, 2 waters 5 mins Cody Casual 4/19/2014 11:45AM - 12:15PM 1 Male 55 1 burger with fries 2 beers, 1 water 4 mins Cody Casual 4/19/2014 11:47AM - 11:48PM 1 Male 35 1 take-out None >1 min Cody Casual

4/19/2014 12:04AM - 12:25PM 3 Males 35,35,40 2 burgers with fries, 1 salad 2 waters, 1 Soda 6 mins Cody Business Casual

4/19/2014 11:02AM - 12:52PM 1 Male 45 None 5 beers None Rachel White Collar

Worker

4/19/2014 11:26AM - 1:09PM 1 Male, 1 Female 50 1 burger with fries, 1 burger

with sweet potato fries 2 waters, 1 beer 8 mins Rachel Business Casual

4/19/2014 12:49PM - 1:33PM 1 Male 35 1 burger with fries 1 soda 7 mins Rachel Casual 4/19/2014 1:31PM - 2:14PM 3 Males, 1 Female 30 4 burgers with fries 4 beers 9 mins Rachel Casual 4/22/2014 7:00PM - 7:32PM 2 Females 21,21 None 2 beers None Jesse Casual 4/22/2014 7:00PM - 7:40PM 2 Males 25,30 2 burgers with fries 2 beers 7 mins Jesse Casual

4/22/2014 7:00PM - 8:15PM 4 Males 21,22,22,

21 4 Burgers with fries, 1 wrap 8 beers 8 mins Jesse Casual

4/22/2014 7:30PM - 8:25PM 2 Males, 1 Female 30,35,30 3 burgers with fries, 1

appetizer 3 beers 7 mins Jesse Business Casual

4/22/2014 7:45PM - 8:50PM 2 Males 40,50 2 burgers with fries 4 beers 6 mins Jesse Business Casual

4/25/2014 5:15PM - 5:40PM 1 Male, 2 Females 35,35,40 2 burgers with fries, 1 salad 3 beers, 3 waters 9 mins Colby Casual 4/25/2014 5:15PM - 6:05PM 3 Males 20,23,23 2 burgers, 1 wrap, 3 fries 4 beers 13 mins Colby Casual 4/25/2014 5:30PM - 6:00PM 1 Male 35 1 burger with chips 2 beers 8 mins Colby Casual

4/25/2014 5:45PM - 7:00PM 2 Males, 2 Females 25,25,25,

30 4 burgers with fries 3 beers 4 waters 15 mins Colby Casual

39

Bibliography

Babin, Barry J., and Eric G. Harris. CB. Student ed., 2nd ed. Mason, OH: South-Western Cengage Learning, 2011. Print. Cialdini, Robert B. Influence: Science and Practice. 5th ed. Boston: Pearson Education, 2009. Print. Underhill, Paco. The call of the mall. New York: Simon & Schuster, 2004. Print. Underhill, Paco. Why we buy: the science of shopping. New York: Simon & Schuster, 1999. Print.