Starbucks Case Analysis

Starbucks

1. When we consider cognitions as they relate to consumer behavior we are referring to the mental responses the consumer displays during their purchase, such as what they think about. One thing about Starbucks is the variety of roasts and wide selection of tea options for their customers. A customer has several options, they may prefer a darker roast such as French or maybe they prefer a milder, lighter roast like their new Blonde Veranda roast. As a customer enters a Starbucks, there’s choices which provide options that satisfy a variety of preferences. The free WiFi at Starbuck’s locations is another thing that consumers think about. It is a great benefit for any customer at Starbucks and often is one of the main reasons consumers make purchases at Starbucks. Having this benefit has also forced competitors, like Panera Bread, to have complimentary WiFi as well. The third thing I know about Starbucks is they have a Rewards program. This is one of the best ways businesses can build a loyal following. When consumers are incentivized for purchases they make, they’re likely to keep coming back. The Starbucks program has three levels, Welcome, Green and Gold and benefits increase as the customer continues to earn stars and move up each level (starbucks.com). Starbucks is also known for their sizes of coffee/tea drinks. They don’t offer your typical small, medium and large options. Starbucks offers Tall, Grande, Venti and Trenta. When Starbucks first opened in 1971 they offered two sizes, short and tall. The short was 8 oz and the tall was 12 oz. Americans demand for more allowed Starbucks to bring in three more sizes. Grande, which means large or huge in Italian, Venti which means twenty in Italian for the 20 oz and then Trenta, which means thirty in Italian for the 30 oz (starbucks.com). Ideally, most consumers know the sizes, but many Starbucks still display the sizes and cups to allow the consumer to view and choose their size. Lastly, Starbucks has a very thorough training program that provides consistency to their customers. Ideally, a Grande Latte that’s purchased in New York City should be made and taste the same as a Grande Latte that’s purchased in San Francisco (Paul, Olson, 2015). When dealing with chains, managed or franchised, consumers want consistency, they know what they’re getting when they walk into a Starbucks and that’s the purpose behind their strict training programs.

2. Affect refers to the feelings a consumer has regarding a product that causes them to like or dislike it (Paul, Olson, 2015). Most people go to Starbucks for the coffee so I’d have to say one of the things I like about Starbucks is their Blonde Roast. Starbucks is most commonly known for their espresso drinks and darker roast coffees. They realized they had an unmet need for a lighter roast option and developed Veranda a Blonde Roast. Starbucks realized they needed to adapt as consumers were desiring a milder, lower priced option at their competitors like Dunkin’ Donuts (Huffington Post, Skidmore, 2011). Another thing I like about Starbucks is their environment in the coffee shop. Starbucks offers lounge style seating and music allows their customers to feel relaxed and comfortable. The complimentary WiFi isn’t such a bad amenity for being a Starbucks customer either. It allows consumers to be productive and stay connected with their friends, family or work. One thing I don’t like about Starbucks is the prices and not just of their coffee and specialty drinks, but even their whole bean coffee for sale to use at home. People may say you’re paying not just for coffee but the experience as well, like a fresh made latte by an experienced barista and a relaxing atmosphere to enjoy it it. Just seems too excessive for an ‘OK’ cup of coffee. Lastly, I think Starbucks has become too ‘corporate like’ and less of a comfortable hometown coffee shop. They’ve added drive-thru’s and food options to keep up with competitors (Paul, Olson, 2015) and there loosing the experience that made the consumer first fall in love with Starbucks.