THE CONSUMPTION IN STARBUCKS

Patrons to Starbucks are looking for the experience of the coffee house.  Coffee lovers come for the wide selection of coffees from high-quality beans.  They want the ability to “design” their coffee, smell the fresh pastry, listen to the soothing Italian music, visit with friends, and have the culture and quality of products be consistent throughout all  Starbuck stores.

Howard Schultz says, “You get more than the finest coffee when you visit a Starbucks-you get great people, first-rate music and a comfortable and upbeat meeting place.  We establish the value of buying a product at Starbucks by our uncompromising quality and by building a personal relationship with each of out customers. Starbuck is rekindling America’s love affair with coffee, bringing romance and fresh flavor back to the brew.

HOW BUYERS MAKE CHOICE

• Customers make choices based on their aspects of a brand’s identity.  Starbucks creates brand equity by commanding a price premium in the market place.  For example, consumers may pay $1.89 for a cup of Starbucks coffee when they could purchase the same volume for 69 cents at another coffee shop.  If consumers prefer the Starbucks coffee and will pay more for it simply because of the label, their choices appear to be determined by their positive associations with the Starbucks name.

• Brand effect- Consumer will pay extra for a cup of Starbucks coffee simply because it’s Starbucks, and not because the product is better.

• Product effect- If the consumer believes that Starbucks uses a higher-quality bean or that the brewing methods produce a better-tasting coffee.  

Article written by Alice Barrois