COVER PAGE

1. How does Starbucks take advantage of each stage in the consumer purchase

decision making process?

There are some essential stages in the consumer purchase decision making process, which are

Need recognition, data search, alternative evaluation and purchase decision and post-

purchase behaviours. Need Recognition is the initial stage in the consumer purchase

decision making process. Starbucks is close to the basic human needs which is thirst. It is

effortlessly finding those basic needs people everywhere and easy to satisfy their need of

thirst simultaneously. But satisfying coffee connoisseurs consumer is different. By way

Starbucks marketers take advantage by improve the ability to identify needs of coffee by the

consumers. Therefore, the business owners eagerly will discovery some alternative solutions

to make their customer’s needs and wants to be satisfied. At the same time, the marketers

make an effort by make their products or services more attractive towards their customer,

since Starbucks had created a name for its high in purity of coffee beans used and the brand

of Starbucks got well-known. For instance, working adult on their way to workplace or in

return. They feel thirsty and deciding to grab a coffee whether hot or cold depends on their

desire. If it’s a cold weather they might go for a hot coffee or the other way. This need is a

basic for human and cannot be predicted when and where. Whereas the need is just a

rudimentary need for Starbucks. Starbucks is vertically integrated and trusts on quality

suppliers from around the word. Each region grows beans with distinct flavour where

Starbucks transports all of the flavours to a solo location for easy purchase.

The second stage is data search where consumers need relevant information related to the

product before making a decision. Even though consumers have visited and tasted variety of

coffee, if they are not satisfied with those taste, they will start to find external information

search. The coolest way is gathering information from friends, family or relative. When that
information not helping them to make the right decision, they might will search thru internet

expecting plenty and relevant data related. This method is Non-controlled information. The

most inspiring part of Starbucks may be its marketing communications program. The

marketing communications program of Starbucks implement as Integrated marketing

communication. The program is to develop the marketing strategy that join in all the

advertising of a company such as sales promotion, profile-raising, direct marketing and

advertising. It is focused to interconnect about the brand of Starbucks. The marketer’s cartel

communication messages throughout all reachable media networks such as advertising on

internet, television, billboards, social medias, newspaper and etc.

The essential stage is alternative evaluation and purchase decision where this stage is

Subsequently gaining all the information needed. At this stage consumers will evaluate other

brands that are presented. After consumers have gathered all the information about the similar

products on different brands, they will compare and value every product which are analysed.

The evolution of alternative is based on the products by quality, price, or any criteria that

satisfy their needs in this stage. Apart from that, baristas which are the drink makers will

make a truthful connection with their consumers which will rise the benefit to Starbucks. The

CEO of Starbucks, Howard Schultz, firmly believes that the reason for success in Starbucks

is not coffee but employees. Those people are engaged through a diversity of motivational

program including buy-in options. As above, Starbucks focuses and trains employees who

love coffee. Employees are called baristas; in Italy it means as a bar person.” Starbucks

constantly inspires these baristas to provide high-quality, pleasing services to customers.

Starbucks practices “Barista Basics Training Program” where The Barista Basics Training

Program offers the early training for afresh hired barista on important skills and information

needed to the barista role at Starbucks Coffee Company. Through relevant and effective

training make sure they become professionals in all aspects of coffee vending and in
promoting coffee culture, providing prompt service, quality beverages and also products. The

company also maintains a various workforce reflecting the makeup of the local community.

There’s respectable reason for maintaining a diverse workforce that goes well elsewhere

measly obedience with legal standards. It’s respectable because people with diverse

backgrounds carry fresh points of opinion that can be precious in making ideas and solving

complications. More than that, location of the business be one of the factors in evaluation

values. Locations are key elements in Starbucks accomplishment. Cafes must be easily

reachable for travellers’ routes and where people can meet to socialize. In each café there are

several enchantments, including jazz music in the background and other products to examine,

such as stainless-steel thermoses, commuter mugs, filters, natural hairbrushes for cleaning

coffee grinders, and home espresso machines. The atmosphere of an outlet is taken into the

consumer’s attention besides the quality of the coffee. Customers usually choose the outlet

that offer them convenience where Starbucks are located at the most tactical position

universally. The position of the shop is with great public circulation and great fame which is

situated nearby office lots, university campus and mainly near customers who needs to buy

coffee. According to Several coffee regulars, Starbucks coffee is kind of classy due to its

higher average price associating to almost all other coffee outlets. Nevertheless, Starbucks

outlets are seen almost everywhere, it is a sign for its achievement. It is said that Starbucks

the most impressive aspect of Starbucks may be its marketing communications program. This

program convinces price-conscious persons change from traditional purchasing habit to novel

selections. However, Starbucks guarantee the new choices absolutely worth the pay where

they apply merchandise must be in good condition and high quality when sold. In addition,

the appearance of goods sold is luxurious which are the hard-plastic cups, the glass bottles,

the brewing machines, stainless steel thermoses, commuter mugs, filters, natural hairbrushes

for cleaning coffee grinders, and home espresso machines supports the above statement.
Eventually, Starbucks offer an expensive but brilliant choice whenever people whish about

coffee and visiting coffee outlets.

post-purchase behaviours are the last stage where Customers will evaluate whether they are

fulfilled or not with the product after using the product. High customer satisfaction level will

make them repeat purchasing. In that case, consumers will ignore the alternative evaluation

and information search stage at the following purchasing and retain as happy and loyal

consumer. The admirable service provided by Starbucks increased customers’ intent to

buyback. A coupon for a complimentary drink will be given to customer who are not satisfy

with their drink and that drink will be replaced on the spot. The admirable customer service

provided by Starbucks will create a wisdom of importance towards the consumer.

2. How does Starbucks attract consumer?

Starbucks have a respectable name in market. Starbucks organize numerous steps to promote

their brand like marketing such as making website and opening their branches in all over the

country to attract the customers. The marketing mix plays an essential role in attracting

customers. The marketing mix (4P’S) are product, price, place and promotion.

PRODUCT

Starbucks main highlight in attracting customers is the coffee’s quality value provided.

Customer fulfilment is somewhat should meets beyond their expectation. Starbucks Coffee’s

quality attract customers in several ways as they deliver good quality coffee with an amusing

taste of the coffee and tasting the pure flavour makes customer to make a visit again.

Starbucks effort to create quality over quantity where they aim on massive prominence on

product quality. The firm is vertically combined and trusts on quality suppliers from around

the word. Respectively each region grows beans with diverse flavours mainly for coffee

connoisseurs, and the best part is Starbucks fetches the flavours altogether to a single location

for purchase. Starbucks attract the customer and retains the existing customers by its

luxurious, rich taste and aroma of coffee. Therefore, Starbucks grips a valuable advantage of

sourcing.

PRICE

Price is significantly to discover the value of a product. Starbucks never fails put their effort

in giving the best to offer high value products to the customers. The quality product given by

exploring and improving the flavour and ingredient continuously. Starbucks collects the

coffee beans from the various top bean trader in the world. Starbucks playing a major role as

a middle seller by selling customers the guaranteed fresh beans. Appropriately Starbucks

make sure the coffee serves within an hour to ensure the freshness of the coffee remains.
These efforts eventually reflected in their price. Starbucks practices on a simple concept - if

the customers get quality products, they willing to pay a little more as the quality is the key.

Price and quality justify the value of the product.

PLACE

Starbucks interior design acts as a hearty approach where people love visiting to have their

coffee, hangout or chit chat with friends, unofficial business meet and etc. Locations are key

components in Starbucks success. This is because Starbucks outlets must be easily reachable

to customer routes and in other places where people can meet to socialize. In addition, in

most Starbucks outlets provide tempting merchandise such as stainless-steel thermoses,

commuter mugs, filters, natural hairbrushes for cleaning coffee grinders, and home espresso

machines which can be collected by customers. Statistic shows that the number of Starbucks

outlets worldwide increases indicates that Starbucks has magnificently turn into the main

coffee business in the world. Consumers convenient to purchase their beverages at numerous

places such near offices, colleges, shopping malls. Then again, Starbucks’ ambient is

exclusive with the interior design of each outlet and enhanced the environment more relaxing

with the aroma of the coffee bar jazz music in the background. This concept stimulates the

buying of coffee by the guests. Customers surely will enjoy and want to experience the taste

of the coffee.

PROMOTION

Promotion is a strategy where a business or firm creates itself well-known and accepted

among the consumers. An active promotional campaign of a firm can ensure the longest to

hold in the market. Even though Starbucks already made a firm position in the market, they

still have to continue the efforts for promotional activities to keep reminding the consumers

of their branding and quality. Starbucks introduced reward programs to sustain the existing
customers. This firm promotes by using multi-channels and enthusiastically active on every

social media through offers, hashtags, and contests. Starbucks provide Starbucks Card with

respective rewards to their customer in order to promote company product and increase the

promotion. Starbucks launched gift cards for their customers to promote their product not

only to their loyal customers but also new customers. For instance, for every perfect

beverage, there is a perfect cup. This can help them to attract new customers at the same time

a reward of appreciation to consumers being an apart of the business. This process conducted

through a free advertisement on the channel easily accessible by consumers. The Starbucks

Rewards program offers enticements for buying products with free in-store refills, free

products (after a certain amount of money is spent), and extra offers and discounts in the

store. In today’s world almost non is without internet knowledge where consumer easily

notice of Starbucks promotion especially on digital channels. The company’s many social

media accounts are known for their characteristic branding advertisement that includes

recipes, photography, articles and features. Thus, Starbucks also uses all the traditional

channels. Digital channels promotion is promoted via mobile apps where makes it easy for

customers to pay ahead and find a store location (Uber Eats app). Moreover, Starbucks has

empowered related and efficient campaigns for promotional strategy which are Product-based

campaigns, Community-based campaigns and Corporate responsibility-based campaigns.

These campaigns by Starbucks emphases on promoting unique and fan-favourite beverages.

The brand knows how famous their leading items are, but more essentially, they discover the

craves of audience. Starbucks persuade social change as a marketing tool, locating

themselves as open-minded and inclusive. Eventually, Starbucks promotion strategy has

worked in result Rises customer’s attention, interest and attracts them more.
3. To attract its prospective buyer what were the unique features in its offerings?

Starbucks has their mission based on inspire and raising the human spirit, that is “one person,

one cup and one neighbourhood at a time”. This indicates that Starbucks’ goal is to make sure

customer to sense the satisfaction of having the coffee but not thinking the price of the coffee.

Customer satisfaction is basically should be given beyond the customer’s expectation.

Starbucks attract customers in numerous ways such as they deliver good quality coffee with

an amusing taste of the coffee and the aroma ensures the customer desired to make a visit

again. Good quality is always rewarded with loyal visit. In that case, Starbucks had studied

the basic characteristics of coffee based on its flavour, acidity and body in order to attract

prospective buyers. Starbucks had found the quality suppliers which provide the best beans in

the world. Quality beans gives quality coffee. Starbucks creates a unique future in the product

offered which is roasting milk and brewing coffee in a nozzle pot and this turns out to the

best coffee. For new customers Starbucks believes that Espresso would be the best choice to

taste. In addition, to attract the prospective buyers and reach the market, Starbucks has to

think out of the box and not the similar as out there. They introduce creamy drink for instance

caffe latte and make the beverage more dilute. The other attractive thing mixing the product

of Expresso, cappuccino and caffe mocha with steamed milk and top it with a milk form

cream fully covered while customers can add the topping on their preferences.
4. How does Starbucks segment its market to achieve greater market share?

Starbucks implement demographic segmentation and geographic segmentation to achieve

greater market share. Demographic segmentation splits the consumer market into minor

categories based on common demographic aspects. Starbucks mainly targets group of people

between 26 and 45 years of age with affordable incomes. The next target group is 18 to 25

year of age from well-being family. On the whole, the people categorized by middle high-

income group of consumers targeted to achieve larger market share. Generally, consumers

with a lesser income will not purchase Starbucks’ coffee. Starbucks price is higher than other

coffee shops where they set based on the product quality actually. In that case, Starbucks

eventually purchased by people with a higher level of income. In part of that, customers

targeted in the age group by Starbucks are college students and working adults. This category

clutches the major market share in standings of Starbucks because it is the ambient for them

to hang out with colleagues and friends. Starbucks also target kids and teenagers in the age of

between 13 to 17. These group is targeted for few relevant offerings which are Frappuccino

and hot chocolate. These beverages are containing lack caffeine and suitable for young and

kids’ customers. Parents will bring their kids out during their free time to spend with them,

generally kids prefer chocolate flavours and other items foods and beverages while the

teenager choose to visit for a peaceful atmosphere for studying, doing assignment, and hang

out with friends. Additionally, these categories of people are willing to spend the money to

pleasure their life in a well circumstance.

Geographic segmentation is a very usual strategy for customer in a specific area as when

the business has a wide-ranging target audience that has dissimilar favourites simultaneously

based on their locations. Starbucks generate geographic segmentation where Starbucks

outlets are almost all around the world. The outlets location particularly located nearby to

those place that have colleges, offices, public transports stations where outlets must be easily

accessible a commuter routes and in other places where people can meet to socialize.

Locations are key elements in Starbucks success. Starbucks primarily use geographic

segmentation thus they don't sell everything in all stores but only in certain outlets actually.

Starbucks has set themselves as an extremely respected brand in a way that it has the

capability to glorify their products from competition. The geographic strategy is on customer

based convenient; the strategy has planned well to provide the best customer. Starbucks

segment its market by keeping in mind of customer satisfaction.

5. Describe how new trends in society affect purchasing process.

People also changes and persuade according the growth of the Starbucks brand. Starbucks

presented a few new trends targeting the group of people who previously not a big admirer of

rich coffee. Those people use to visit local coffee shop or make their own coffee. The action

of introducing new trends in Starbucks created a massive choices variation to the buyer’s

preference.

There are a few trends introduced to meet the eyes of people out there which are Drive-Thru

concept, technological trend and instant Starbucks coffee product.

Drive-Thru concept is specially for the coffee fans to purchase coffee as a starter to boost up

their day. Drive-through stores which allow consumers to buy without getting down from the

car and safe their time for a quick purchase. This concept is helping those consumers by ease

their daily routine when they have to rush to save their time in looking for parking and

queuing at the counter.

The development of technology trend generated the users of smart phone to rise. Starbucks

has their own apps especially mobile where consumers can choose and select their order right

away make payment for the items in the cart. Furthermore, in mobile apps customers always

been alert whenever there is promotion and to detect the closest store. The Starbucks card can

be reloaded online thru the app where customers can use it during their purchase without

bringing any cash along. Customers also can check their card balance; check rewards and

points they have collected to get their next free drinks whenever they wish. Besides, the app

has health information of the Starbucks products and ingredients. A part from that, social

media such as Instagram, Facebook and twitter also plays the similar role in changing the

buying process. The new promotions, offers, discounts and rewards are always updated these
sites which will notify the customers. Customers would make up their mind and change their

decision once they read the positive reviews on the social media. Technological tool as like

social medias developed a new feature that in a few clicks on the products will direct to the

buy in page to ease the buying process. These social media sites permit users to share the

page to their friends or families.

Instant coffee product is introduced by Starbucks especially for traditional consumers out

there. This product serves in certain stores and also can be found in shopping malls or

supermarket. This trend has made customer to give a try even though they never try that

before. When consumers visit shopping mall or supermarkets to grab their needed things this

instant coffee product has a high chance to purchase by them when it meets their eyes. They

might make the decision in the right thought of it is easy to prepare it at home just by adding

hot or cold water as they desire as well as it is certainly cheaper than ground or bean coffee.
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