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>cases Starbucks, Bank One, and Visa Launch Starbucks Duetto Visa >Abstract In the very mature financial services industry, it is rare...

Please Answer the five Discussion questions given at the end of the case study that I have enclosed, and briefly discuss the merits of the qualitative techniques used in this research and how they contributed to the overall findings. Summarize the answers and comments in a two-page APA formatted paper that includes in-text citations, headers as well as references. Thanks
Business Research Methods , 11e, Cooper/Schindler 1 > cases In the very mature financial services industry, it is rare for a new financial product to garner much attention, let alone be named one of BusinessWeek ’s outstanding products of the year. But what started as a way for Starbucks to add value to its existing Starbucks Card program developed into a financial product that many other institutions are interested in exploring. This case reveals the research that was done to develop this new payment option for Starbucks customers. www .st arbucks.com ; www .bankone.com ; www .visa.com > Abstract > The Scenario Starbucks Coffee Company is the leading retailer, roaster, and brand of specialty coffee in the world, with more than 7,500 retail locations in North America, Latin America, Europe, the Middle East, and the Pacific Rim. 1 It has long prided itself on offering an enriched customer experience as much as on great-tasting, high- quality coffees. The company’s prepaid stored-value card, known as the Starbucks Card , has been a tremendous success since its launch in late 2001. By 2002, Starbucks was looking to evolve the program. Colette Courtion, Director of Starbucks’ global card services, indicates “We had been regularly enhancing the Starbucks Card with new benefits for its ongoing use—like protecting the Card’s balance and adding auto-reload [a process whereby the customer has his or her selected credit card charged for reloading the Starbucks Card with spend- able cash when the Starbucks Card reached a predetermined level], but we wanted to build on the Card’s success in a way that would reward our loyal customers.” 2 Similar to other businesses’ cards, Starbucks prepaid, stored-value card can be used in its stores to purchase food, beverage and merchandise. Many Starbucks customers reload their Starbucks Cards for ongoing purchases at Starbucks. “The success of the Starbucks Card gave us the idea of creating an entirely new payment product.” This new payment product would marry the functionality of a Starbucks Card with the functionality of a major credit card. “With a dual function card we could reduce the number of cards our customers carry. It was also an opportunity to reinvent an industry that was mature and saturated and make it relevant and unique to our customers.” Early secondary research indicated such a product did not exist in the credit services industry. The card would also be entry into Starbucks first formal loyalty program. “Consumers expect rewards from their credit cards. But we didn’t want to be too prescriptive with our rewards structure. If something is expected, it doesn’t feel special.” Used with permission of Pamela S. Schindler. © 2006. Starbucks, Bank One, and Visa Launch Starbucks Duetto Visa
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Business Research Methods , 11e, Cooper/Schindler 2 > Finding and Assessing Card and Bank Partners Starbucks set out to see if it could stimulate interest in a new financial services product in the mature credit services industry. “We didn’t want to offer a standard credit card. 3 We wanted to leverage the success we had already established with the Starbucks Card and provide our customers with something truly innovative in the market place. To do that, we had to find the right partners.” The right partner would be one that could share the Starbucks vision and make a commitment to offering the top-quality customer service that a Starbucks customer had come to expect. “Starbucks is known for its innovation so we had to develop a product that would truly surprise and delight our customers,” ex- plains Courtion. Starbucks approached card services companies MasterCard, American Express, and Visa. It conducted interviews with bank executives, visited call centers, even listened in on phone calls to learn how each resolved customer credit card problems. “Visa and Bank One shared our vision and excitement about the new payment product, and our commitment to exceptional customer service,” claimed Courtion. Visa and Bank One also brought extensive knowledge of the credit card market and marketing expertise to the partnership. Visa cards are accepted by millions of establishments, in more than 150 countries; one in every eight dollars spent in the United States is spent with a Visa card. 4 “People who love Starbucks will love this card,” promises Carl Pascarella, president and CEO of Visa USA. 5 Bank One is the number-one Visa card issuer in the world, with more than 52 million credit cards issued; it handles more than 1.8 billion credit card transactions per year. 6 “Bank One is excited to be working with Starbucks to develop an innovative payment technology that makes life easier and more rewarding for customers,” shares Jamie Dimon, chairman and CEO of Bank One. 7 > Concept Testing Starbucks, Visa, and Bank One all have internal research operations. From the beginning this was a collaborative research effort among all three companies. Starbucks thought the idea of a dual-functionality card might be confusing. Bank One and Visa shared that concern. “We wanted to know if customers could understand the value proposition of the dual functionality,” shares Ajay Gupta, senior group research manager for Bank One. They tested the idea of a dual- functionality card with four focus groups, using the services of an independent moderator. They chose Seattle and San Francisco, both with good Starbucks coverage, for the focus groups, which involved two major groups of Starbucks customers who owned a credit card: those who used the Starbucks Card and those who did not. The purposes of the groups were to determine how well customers understood the dual-functionality concept—a credit card and stored- value card in one—identify areas requiring more clarification, and assess the appeal of monthly rewards and how they might be delivered. “The focus groups helped us refine the concept, and define what might comprise the ‘surprise and delight’ features of the card,” explains Gupta. “We learned that the concept of Starbucks-BankOne-Visa-Launch-Starbucks-Duetto-Visa
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Starbucks case analysis.docx

Starbucks Case analysis
Starbucks is renowned for its innovation in the business. They introduce products
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