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value of marketing
Marketing mix elements include product, place, promotion, and price.
TOP: AACSB Reflective
KEY: CB&E Model Product | CB&E Model Distribution | CB&E Model Pricing | CB&E Model
MSC: BLOOMS Application
Starbucks Loyalty Rewards
The first Starbucks opened in 1970 in Seattle, Washington. The demand for its coffee grew, and
Starbucks added more than 6,000 stores located in over 30 countries. In its more than 30-year
history, Starbucks has never given out coupons for its coffee. Starbucks needed only to make its
coffee and customers came. Recently, consumer quality perception of the Starbucks brand has
started to fall. Starbucks started a consumer response blog to learn more about what consumers
expect from Starbucks. One of the most common requests was for a customer rewards program.
In response, Starbucks started My Starbucks Rewards, which offers free refills on brewed coffee,
free beverage with whole bean purchase, beverage customization, and free Wi-Fi. Starbucks also
put coupons in a national newspaper for those consumers who love coupons and created a new
brew of coffee for those who prefer a milder coffee taste. Starbucks is hoping that these
improvements will restore customers’ loyalty and confidence.
101. Refer to Starbucks. Which of the four conditions did NOT exist in the minds of the Starbucks
consumer, resulting in declining sales?
Each party having something of value to give
to the other party
Each party being capable of communication
Each party being free to accept or reject the d.
e. exchange offer
Each party believing it to be appropriate or
desirable to deal with the other party
There being at least two parties for exchange
to occur ANS: A
Starbucks customers were not seeing the value of exchanging their money for Starbucks products.
KEY: CB&E Model Customer OBJ: 01-1 TOP: AACSB Reflective MSC: BLOOMS Application 102. Refer to Starbucks. For more than 30 years, Starbucks held the orientation of “If we build it, they
will come.” This philosophy is most in line with a _____ orientation.
A production orientation means that management asks, “What do we do best?” In the Starbucks
case, the company made great coffee and created an atmosphere where people wanted to spend
time and money.
KEY: CB&E Model Strategy OBJ: 01-2 TOP: AACSB Reflective MSC: BLOOMS Application 103. Refer to Starbucks. Starbucks customers wanted more value from their coffee. Starbucks
management responded to customers through the Starbucks card rewards program. Which
element of value was Starbucks management working to increase?
Offering products that perform
Avoiding unrealistic pricing
Giving the buyer facts
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- Fall '13