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Consumer Behavior

Submitted by mftieu on March 5, 2007

Category: Miscellaneous
Words: 1783 | Pages: 8
Views: 395
Popularity Rank: 22,248
Average Member Grade: N/A (Add a Comment / Grade this Paper)

Four C’s are as follows:
1. Cost to the Consumers:

o The average Starbucks customer visits a store 18 times a month and spends $3.50 a visit.
o The company’s sales and profits have each grown more than 50% annually through much of the 1990’s.
o The pricing strategy is based on the consumers’ perceptions of value.
o Price ranges:
Coffee per pound
- Latin America coffee ranges from $9.95 to $12.95 per pound.
- Africa/Arabia ranges from $9.95 to $15.95 per pound.
- Asia/Pacific ranges from $10.15 to $13.45 per pound.
- Multi-region blend ranges from $ 9.95 to $12.95 per pound.
- Dark roast blend ranges from $ 9.95 to $10.65 per pound.

Individual beverages
- Tazo tea ranges from $1.35 to $3.45
- Espresso ranges from $ 1.35 to $2.30 per pound.
- Coffee (hot) ranges from $ 1.45 to $1.75 per pound.
- Coffee (hot) ranges from $ 1.60 to $2.45 per pound.
- Frapuccino ranges from $ 2.65 to $4.20 per pound.

2. Communication:

Starbucks focuses on the word of mouth as a main media of communications by creating a unique customer experience and is not concentrating so much on advertising. The ability that Starbucks has had to make human contact with their customers, through their people, is one of the reasons they have been so successful. Too often, companies view customers as transactions, not people. That is what happens when there is an emotional connection—when someone says he appreciates you as a customer and a human being. Starbucks tries to enhance people’s days and make them feel good about being at Starbucks.

Starbucks provides in-store promotions by having programs such as ‘one free coffee day’ as a way to promote their coffee.

Starbucks relies on relationship capital. This delicate asset requires continual nurturing and attention. If you frequent a Starbucks nearby, you...

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