Refer to starbucks starbucks customers wanted more

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104. 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? a. Products that perform b. Earning trust c. Avoiding unrealistic pricing d. Giving the buyer facts e. Co-creation ANS: B In order for Starbucks to continue to grow and prosper it needed to keep its stable base of loyal cus- tomers happy. PTS: 1 REF: 7-8 OBJ: 01-3 TOP: AACSB Reflective Thinking | TB&E Model Strategy NAR: Starbucks Loyalty Rewards 105. Refer to Starbucks. The fact that management realized that coffee drinkers had different needs, wheth- er it be using coupons, wanting a milder brew of coffee or watching free Wi-Fi, shows that Starbucks is now using a _____ oriented approach.
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PTS: 1 REF: 11 OBJ: 01-3 TOP: AACSB Reflective Thinking | TB&E Model Strategy NAR: Starbucks Loyalty Rewards ESSAY 1. Explain how marketing is both a philosophy and a set of activities. ANS: The first facet of marketing is its philosophy. This philosophy is an attitude, perspective, or manage- ment orientation that stresses the importance of customer satisfaction. The second facet of marketing is the set of activities used to implement this philosophy. These activit- ies include (but are not limited to) planning, pricing, promotion, distribution, selling, advertising, and inventory management. PTS: 1 REF: 3 OBJ: 01-1 TOP: AACSB Communication | TB&E Model Strategy 2. What is the American Marketing Association’s (AMA) definition of marketing and what does market- ing entail? ANS: According to the AMA, marketing is the activity, set of institutions and processes for creating, com- municating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Marketing entails the processes that focus on delivering value and benefits to custom- ers, not just selling goods, services, and ideas. PTS: 1 REF: 3 OBJ: 01-1 TOP: AACSB Communication | TB&E Model Strategy 3. Describe the concept of exchange and list the five conditions that must be satisfied for exchange to oc- cur. If all conditions are met, does that guarantee exchange will occur? Explain why or why not. ANS: The concept of exchange simply means that people give up something in order to receive something that they would rather have. Money, goods, or services may be the medium of exchange. The five con- ditions of exchange are: 1. There must be at least two parties. 2. Each party has something that might be of value to the other party. 3. Each party is capable of communication and delivery.
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