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Questions and Answers
What percentage more than the average did consumers with college degrees purchase?
Which age group had a higher coffee consumption?
What did the research by coffee companies suggest would happen to consumers who appreciated high-quality specialty coffee?
What change in socializing patterns was observed from the mid-eighties to the early nineties?
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Why were coffeehouses able to fill a need in the early nineties?
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What change in coffee's image occurred as mentioned in the text?
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What impact does the poor service and average coffee at the Brewery have on consumer behavior?
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How does the discrepancy between the Brewery and Starbucks coffeehouses influence consumer perception?
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In the context of consumer behavior, what role does product quality play in influencing customer loyalty?
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How does the environment of a coffee shop contribute to consumer behavior according to the case study?
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What effect does the poor service at the Brewery have on consumer retention and repeat business?
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How do consumer perceptions of a brand influence their purchasing decisions?
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What challenge did Starbucks face in terms of merchandising?
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What type of questions did people ask the store employees at Starbucks, as mentioned in the text?
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What was a key demand in terms of developing employees' expertise at Starbucks?
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In what way did Starbucks view itself regarding real estate opportunities?
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What kind of accessory items did Starbucks offer bearing its logo?
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Which aspect posed an ongoing challenge for Starbucks as it grew?
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Study Notes
Coffee Consumption Patterns
- Single people purchase 39% more specialty coffee than the average consumer.
- Consumers with college degrees purchase 49% more specialty coffee than the average consumer.
- Females purchase slightly more specialty coffee than men.
- Coffee consumption is higher among individuals aged 30-59 than those aged 20-29.
Coffee Appreciation
- Once a consumer develops a taste for high-quality specialty coffee, they tend not to go back to average quality brew.
Socializing and Coffeehouses
- In the 1980s, people sought entertainment outside the home, but in the 1990s, they preferred to stay home.
- In the late 1990s, there was a resurgence of outside-the-home entertainment, and coffeehouses filled this need.
- Coffeehouses became a social catalyst, and consumers wanted more than just a high-quality cup of coffee.
Starbucks Employee Training
- Baristas need to be knowledgeable about coffee to answer customers' questions, such as pairing coffee with desserts or meals.
- Developing coffee knowledge and service expertise required significant effort from employees.
Merchandising
- Starbucks only carries high-quality merchandise, including coffee-making equipment from manufacturers like Krups, Gaggia, and Bodum.
- The company also offers accessory items bearing the Starbucks logo, such as coffee mugs, grinders, and coffee filters.
Real-Estate Approach
- Starbucks is real estate opportunistic, meaning it can fit a location into many retail spaces, regardless of shape or design.
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Description
Explore a case study prepared by Ariff Kachra under the supervision of Professor Mary Crossan for class discussion purposes. The study does not aim to showcase effective or ineffective managerial handling. Certain details have been altered for confidentiality purposes.
