Starbucks, Bank one, and Visa Launch Starbucks Duetto Visa

Starbucks, Bank One, and Visa Launch Starbucks Duetto Visa

Barbara Tucker

California Southern University

MGT 87520-4

August 22, 2016

Dr. Mike Ewald

Starbucks, Bank One, and Visa Launch Starbucks Duetto Visa

Introduction

The case study summarizes the steps that Starbucks took to develop a financial product that would add value to their existing program. Before the dual use card was developed a series of research tests were conducted to gauge how aspects of the proposed card would be preceived in the market. The case study will review aspects of the research conducted that included, collaborative research, focus groups, multiple surveys, and a product optimization study.

Analysis

Before Starbucks would set out to create the new card features and simultaneously reinvent the financial industry the company had to conduct a series of research testing to understand the financial market, it was entering.  Starbucks began by conducting secondary studies to determine if a dual function card already existed.  They determined that there was not a dual purpose card currently in the market.  

Starbucks then set-off to find the correct partners. To select the right partners, they needed to make sure the partners would share vison of Starbucks and share the commitment to offering superior customer-service. Once the partners were determined to be Visa and Bank One collaborative research was conducted by all three.  

As part of the study, a hierarchy of questions were needed.  “Management questions are the restatement of the management dilemma in a question form” (Cooper & Schindler, 2014).  This process moves the management question and research problem and takes on exploratory studies. In this case, the dilemma for management is there a brand fit between the new card and Starbucks?  This primary research may help determine how the products could be developed to garner the most success for the company.  Focus groups were established to identify areas that needed clarification, and the appeal of the dual functionality concepts.

Surveys can provide valuable information and are part of the research process. If utilized in the current manner survey research can provide market researchers with reliable, useable, and useful data, to improve the research.  The anonymity of a survey can allow respondents to provide candid answers to questions (Wyse, 2012).  Additional benefits of conducting surveys are that the costs of these types of research are relatively inexpensive, and can be administered in many modes, allowing for flexibility (Wyse, 2012).

The team turned to Greenfield online to recruit a panel for one of its online surveys.  A sample from of appropriate participants for future online surveys should be conducted from Starbucks Cards users.  Since these people have already had experience with Starbucks, it should provide insight as to the value of the benefits perceived.

Solutions

Using stages of the hierarchy management research questions, management can obtain additional information critical to the research results.  With the managment dilemma questions previously addressed, the next step is to develop a hierarchy of management-research questions. Questions may include: