Consumer Behavior of Starbucks - 2824 Words

Draft #1 Section I Starbucks In 1971, three friends with a passion for coffee opened a gourmet shop Ââ€" Starbucks was born. The coffee shops name comes from Herman Melvilles 19th century novel about the whaling industry, Moby Dick. The seafaring name seemed appropriate for the small shop, which imports the finest coffee. The cold weather and thirsty Seattle community seemed to be a perfect match for this endeavor. Starbucks caught on and, in less than a decade, became Washingtons largest coffee roaster. In 1982, Starbucks coffee changed forever. While traveling in Milan, Italy, head of marketing Howard Schultz was intrigued by the coffee shop atmosphere Ââ€" patrons sitting, relaxing and chatting over cafà © latte. Wanting to†¦show more content†¦A major factor in this astounding figure is the self-concept that Americans need to uphold. Americans feel the need to portray themselves as being wealthier than they truly are. For this same reason, the automobile industry manufactures semi-luxury cars for a more affordable price. The vehicle appears much more luxurious on the outside than it truly is. By drinking a cup of Starbucks coffee, a middle-class American feels as though they are rubbing elbows with the truly wealthy of our society. Not everyone in the world enjoys a nice warm cup of coffee. Starbucks has taken the coffee drinking segment of consumers and further dissected it in order to provide a chilled form of the drink. This further extends their sales. The same parent that enters a Starbucks coffee shop in order to fulfill their need for a cup of coffee, buys their child a chilled, coffee-free frappachino. Starbucks then went another step further and made their stores a destination rather than a stop. Customers are invited into every location by the warming smell of fresh brewed coffee, light relaxing music and comfortable sitting areas. Making a customer comfortable enough to sit down and enjoy their coffee also expands the companys sales. The customer can now enjoy another of Starbucks offerings such as a piece of cake or a sandwich. Having customers stay in their store creates a buzz around the facility. When a store is full of happy people talking and enjoyingShow MoreRelatedEffect on Starbucks Store Design on Consumer Behavior in China1634 Words   |  7 PagesHow Starbucks store design affect its consumer behavior in China. Starbucks Corporation is an American global coffee company, coffeehouse chain stores that adapt Italian-style coffeehouse. It is the largest multinational chain of coffee shops with 20,366 stores in 61 countries, including 13,123 in the United States and 732 stores in China. The first Starbucks opened in Seattle, Washington, on March 30, 1971 by three partners: English teacher Jerry Baldwin, history teacher Zev Siegl, and writer GordonRead MoreStarbucks Case1468 Words   |  6 PagesMarketing Strategy in Action Starbucks-2008 Discussion Questions: 1. Based on the case information and your personal experiences, list at least five things you know about Starbucks. This list offers you some idea about your cognitions concerning the coffee shop chain. a. Starbucks is a 500 Fortune Company. b. They have coffee from different countries around the world. c. There is free Wi-Fi Internet connection. d. There are many Starbucks locations in the United States. e. TheRead MoreStarbucks Case Study1534 Words   |  7 PagesStarbucks - 2008 Cognition gives the companies information on how consumers respond to different marketing stimuli they face for the products used. It has to do with customer’s thinking and how do they behave toward a particular product. To be more specific and also reading the book â€Å"cognition refers to the mental structures and processes involved in thinking, understanding, and interpreting stimuli and events.† (Peter amp; Olson, pg. 21) Based on my personal experience I don’t really knowRead MoreStarbucks Case1078 Words   |  5 PagesStarbucks 1) Based on the case information and your personal experiences, list at least five things you know about Starbucks. This list offers you some idea about your cognitions concerning the coffee shop chain. The five key things that I know about Starbucks are the amount stores that opened rapidly. It grew from 6,000 stores in 2003, to 16,000 stores in 2008. I believe this was too extreme because they could miss out on some important marketing strategies such as the three elements; consumerRead MoreHow Would You Classify the Starbucks Product Using the Marketing Consideration for a Consumer Product? What Individual Product Decision Has Starbucks Made?973 Words   |  4 PagesQUESTION 2 How would you classify the Starbucks product using the marketing consideration for a consumer product? What individual product decision has Starbucks made? A product represents the heart of an organization s marketing program. Without a product, there were no price, design, target market, marketing mix, promotion strategy etc. simply, there were no business. Starbucks  products can be defined as Convenience Products because there are relatively inexpensive and limited shoppingRead MoreCorporate Social Responsibility1375 Words   |  6 Pagesï » ¿Running head:( STARBUCKS) Starbucks Aneez Mohammed Columbia Southern University Starbucks. 1.Starbucks has worked hard to act ethically and responsibly. Has it done a good job communicating it efforts to consumers? Do consumers believe Starbucks is a responsible company? Why or why not? Starbucks opened up in 1971 in Seattle as the first Italian company in United States to have a coffee house for customers. The idea was to have a setting of Italian elegance, a personal treatRead MoreCompetitive Forces Within The Industry ( Porter s Model )1416 Words   |  6 PagesForces in the Industry (Porter’s Model) Threat of Substitutes: High There are several substitutes to coffee that are considered reasonable by consumers such as tea, energy drinks, juices, sodas, water, etc. Another alternative to coffee retailers is simply brewing coffee at home at potentially a fraction of the cost. Additionally, switching costs for consumers to alternatives to coffee are fairly low. Hence, overall the threat of substitutes to coffee retailers is high. To combat this, many coffeeRead MoreStarbucks Ethics and Social Responsibility Practices: Analysis and Recommendations1624 Words   |  6 PagesStarbucks has worked hard to act ethically and responsibly. Has it done a good job communicating its efforts to consumers? Do consumers believe Starbucks is a responsible company? Why? Or Why not? In part, I do believe Starbucks has done a fair job in articulating its ethical value proposition to consumers. However, more can be done to insure the all customers know the companies values and efforts in regards to its socially responsible actions. Currently the company has numerous points of sale informationRead MoreSurvey Questions On Starbucks Corporation1448 Words   |  6 PagesSmall Fair Trade: Starbucks Corporation Methods Survey Questions The survey questions mostly consisted of multiple choice questions, two open-ended questions, allowing written responses, and one qualitative response question. These questions were chosen to establish consumers differences and comparative perspective of Starbuck’s competitors, their daily usage of the social media platforms, the coffee shops visited frequently, and their opinions on consumers who frequent Starbucks. The survey containsRead MoreStarbucks : Just Who Is The Starbucks Customer1085 Words   |  5 PagesStarbucks’: Just Who Is The Starbucks’ Customer? Case Study Introduction: Starbucks started out in Seattle by three friends who were passionate coffee lovers. The small coffee shop became an instant hit with the locals. It sold the finest coffee and satisfied the thirsty community and by 1980, after less than a decade since its inception, it had become Washington’s biggest coffee master. The unusual coffee shop caught the attention of an Italian; Howard Schultz, who saw a lot of potential in it