Starbucks Discussion Answers
Question 1) What factors accounted for the extraordinary success of Starbucks in the early 1990s? What was so compelling about the starbucks value proposition? What brand image did Starbucks develop during this period?
Answer1) The factors which accounted for the extraordinary success of Starbucks was The envison of the Schultz which made it a big factor for creating a third place for americans. Moreover by this time he was able to reach most of the customers, providing with the best coffee in the market. As he directly contacted with the growers of the coffee, Shultz gave his customers, different variations in his product. He provided his customer, a very good and effective customer service. The name itself became a brand. As previously the percentage of coffee consumers were less, Shultz turned his customers into coffee lovers. Shouldice value proposition was the coffee itself, as customer was given the best quality of coffee, the second proposition was customer intimacy, and the third was about the atmosphere that a customer felt in Starbucks. So during this period Schultz wanted to reach it customers, wherever they are by sharing the values and be committed to the quality.
Question 2) Why have Starbucks customer satisfaction scores declined? Has the companys service declined, or its simply measuring satisfaction the wrong way? How does the Starbucks of 2002 differ from the Starbuckss of 1992?
Answer 3) It declined because company was too concerned about on what they felt was needed to happen, which was speed up the process and have faster service, They lost customer intimacy which we discussed earlier. Moreover the survey or the research conducted was not upto-mark and hence the service result in decline of customer satisfaction. No the company is measuring the customer on different criterias hence the company is measuring the satisfaction wrong way, Previously Starubucks used to attract particular