2.Why have Starbucks’ customers satisfaction scores declined? Has the company’s service declined, or is it simply a measuring satisfaction the wrong way? Starbucks marketing research team discovered that the Starbucks image had some rough edges and observed the following: a.There was very little product differentiation between Starbucks and smaller coffee chains. b.During a survey, the number of respondents mostly felt that Starbucks was more about making money and building new stores than customer satisfaction. Their market research team discovered that Starbucks needed to start communicating their value and values to their customers and not focus so much on their grown plan. Based on a customer frequency analysis, Starbucks realized that their customer satisfaction and loyalty had both decreased. Their survey result with regards to improving customer service was to improve their speed of service.
3.How does the Starbucks of 2002 differ from the Starbucks of 1992? In 1992 Starbucks had already expanded 140 stores Northwest and Chicago areas and was successfully competing with smaller coffee chains such as Gloria Jeans Coffee Bean and Barnie’s Coffee & Tea. During that same year, Starbucks decided to go public despite of the skeptics who thought that paying so much for coffee was ridiculous when they could purchase a copy of coffee for have the price at a local coffee shop. Going public was an excellent decision which helped raise $25 million which allowed Starbuck to continue expanding by opening more stores nation wide. From 1992 to 2002 sales went up 40% since the company had gone public. In 2002 the company was servicing an average of 20 million customers in over 5,000 stores around the world and was opening on average 3 stores a day. Starbucks was so successful that it did not have to spend any money in advertising.
4.Describe the ideal Starbucks from a profitability standpoint. What would it take to ensure that this customer is this customer is highly satisfied? How valuable is a highly satisfied customer to Starbucks?
Starbucks like any other corporation out there has been...