om namah shivay srinathji 4003

MKT 4003

RESEARCH IN MARKETING

GROUP PROGECT

Module Leader: Dr. Simon Manyiwa

Seminar Tutor: Cheng-Hao Chen

Academic Group: Marketing Management

Name: Vaibhav Salvi, Gaurang Parkeh,

Student No: M00286508, M00268082

Assessment: GROUP COURSEWORK

Date: 4th May 2010

1

TABLE OF CONTENTS

EXECUTIVE SUMMARY 3

BACKGROUND 4

M, R, Q COMPONENTS 7

RESEARCH DESIGN 9

DATA COLLECTION INSTRUMENTS 14

DATA ANALYSIS, FINDINGS, RECOMMENDATIONS 19

LIMITATIONS 27

BIBLIOGRAPHY / REFERENCING 28

2

Research Project on Starbucks

Executive Summary

This paper focuses on the research study which was conducted in London to know the

consumer awareness about the Starbucks in terms of its Pricing Strategy and Brand

equity. Although the research was conducted because of the problem raised in the year

2009 as Starbucks decided to close of 61 of its 84 Australian stores and to start up with

the closure of 600 stores in United States but on the other side Britain was a substantial

growing market with unexploited potential .The research study was undertaken to know

the impact of Undaunted decision taken by Starbucks and how it affects the daily

consumers behaviour in London (UK). Quantitative research method was used for

conducting the above research study. Demographics are considered in the formation of

research design. A group 120 respondents were selected in order to achieve the

desired aims and objectives. Likert summated scale was used in the questionnaire to

assess the consumer attitude towards the Starbucks in terms of a Brand. Casual

research was selected to conduct the research as it helps to predict about such type of

‘Hypothetical Scenarios’. Non-Probability Judgemental sampling was selected to for

conducting the survey for our research study. The results from the study can be used by

the marketer to better understand the consumer awareness towards Starbucks.

3

Background Research

Starbucks was formed in 1985 under the direction plus leadership of Howard Schultz.

Howard currently serves as the Chairman of the Board in addition to lead visionary of

the trade. Starbucks purchases as well as roasts high-quality whole bean coffees plus

sells them, beside by means of fresh, rich-brewed coffees, Italian-style espresso drinks,

chilly blended beverages, a selection of complimentary food items, coffee related

accessories as well as equipment, a selection of premium teas in addition to a line of

compact discs, primarily through Trade-operated retail stores.1 Starbucks uses

ingenious marketing strategy by offering the coffee products at a higher price as

compared to the average market price.

Starbucks was opening new stores every day somewhere in the world during the 1990’s

and it continued into the new millennium. However there have been decline in the

growth of domestic market. But on the other side starbucks as a brand is booming in

other countries. Starbucks coffeehouses began to give consumers a different kind of

feeling about drinking coffee. Partners know as employees of starbucks are acquiring a

different kind of experience then one a regular barista would expect. In the year 2005

Fortune magazine rated starbucks as the 11th best place to work in the United States

and in the year 2007 UK stores were voted among the top 10 best places to work by

Financial times.2

Starbucks as a brand had enjoyed phenomenal growth since 1988 when Howard

Schultz was the chairman and also become one of the great retailing stories of recent

history by producing excellent coffee drinks and selling dark-roasted coffee beans and

coffee-making equipment. Starbucks brand was considered as one of the finest and

most effective brand names in America and the company had firmly established itself as

1 http://www.mhhe.com/business/management/thompson/11e/case/starbucks.html 2 http://ezinearticles.com/?Starbucks-Coffee---The-History-and-Background-of-Starbucks-Coffee &id=888962

4

http://ezinearticles.com/?Starbucks-Coffee---The-History-and-Background-of-Starbucks-Coffee%20&id=888962

http://www.mhhe.com/business/management/thompson/11e/case/starbucks.html

the dominant retailer, roaster, and brand of specialty coffee in North America. Starbucks

had more than 1,500 stores in North America and Pacific Rim. In the financial year 1997

starbucks sales was recorded around $967 million and profit was $57.4 million. There

was a boom in the stock price as it increased nearly nine fold since going public in

1992.3

Starbucks has developed the market all over the globe. There are more than 400 coffee

shops in UK alone and more than 15,000 stores in 47 countries. The announcement

made by the starbucks to close 600 coffee shops across America as the economy falter

and customers shy away from their daily $4 coffee shot. The decision taken by

Starbucks' chairman Howard Schultz to close stores in Australia will help for supporting

the growth of the international business. This decision taken by the starbucks has

generated outrage from many devoted customers of starbucks in the US and they had

also set up a campaign called save our Starbucks. Howard Schultz also added that

“This decision represents business challenges unique to the Australian market; it in no

way reflects the strong state of Starbucks business in countries outside of the US.”4

3 http://www.mhhe.com/business/management/thompson/11e/case/starbucks.html 4 http://www.telegraph.co.uk/finance/personalfinance/2793942/Would-you-save-your-Starbucks-from-closure.html

5

http://www.telegraph.co.uk/finance/personalfinance/2793942/Would-you-save-your-Starbucks-from-closure.html



The above graph demonstrates the financial market condition of Starbucks. Starbucks

during the middle of its restructuring were facing the problem because of the effects of

slower store traffic and a weak economy and due to this there was a drop in the market

share of starbucks. The company acquired $5.4 million or 1 cent a share in fourth

quarter of 2008. As per the Factset analyst survey, company earned around 10 cents a

share excluding charges to shut down and cut jobs. Starbucks earned $158.5 million or

21 cents per share in the year 2007. Starbucks sales rose up to $2.5 billion during the

quarter ended in 2008. Looking forward starbucks forecast that it would earn in the

range of 59 cents to 78 cents for the financial year 2009 depending on whether

comparable store sales decline 2% or as much as 7%. Starbucks cut its plans of global

expansion and capital spending. The company has decided to open up 700 new coffee

stores by the end of 2009. Starbucks has decided to spend $750 million for their

expansion plans but due to the economic conditions they have cut down their budget to

$700 million. In the year 2008 Starbucks shares went down to 3%, continuing the year’s

trend. The economic slowdown in the California and Florida markets and the increase in

the rate of unemployment have broken down the previously highflying coffee chain.5

MDP, MRQ, Components

5 http://www.marketwatch.com/story/economic-slowdown-restructuring-costs-batter-starbucks

6

http://www.marketwatch.com/story/economic-slowdown-restructuring-costs-batter-starbucks

The undaunted decision taken by Starbucks to close of 61 of its 84 Australian stores

and to start up with the closure of 600 stores in United States, Starbucks has detected

Britain as a substantial growing market with unexploited potential. The managing

director of Starbucks Phil Broad stated that despite of slight decline in the traffic in the

three months to June 29, the companies third quarter was on the track to meets its

target of opening 100 new stores by the end of the fiscal year. Starbucks has opened

around 78 stores, taking its total number to 679. Global market all together continues to

be a growth engine for Starbucks as the company is excited by the constant growth in

the UK market.6

The 78 new coffee shop openings in 2008 had been a partial offset by 10 closures. The

reasons for the closures of stores were because of the expired leases or the availability

of the better sites, poor performance. Analysts indicated that, as though Whitbread's

Costa coffee chain, the past slack in like-for-like sales development at Starbucks had

comprised mostly down to the strong comparatives from last year, when, for much of

the summer, dire weather sent people running for cover into the nearest coffee shop.

Starbucks recent developments include the opening of new first roadside drive-to

outlets, in surrey, and Europe's first drive-through store, in Cardiff. The company is also

expanding its franchised business with Centre Parcs, University of surrey and village

Hotels. Starbucks announced a deal in June with SSP, the caterer, to open more than

150 new coffee shops at airports and rail stations in the next 3 years.

However experts think that the sufferings that have afflicted Starbucks in America and

Australia could come to roost in Britain.Starbucks stores are the equivalent as they were

5 years ago. Starbucks should re-evaluate all parts of the business, from signage to the

flow of customers, store design and product range and mix. Hence it becomes clear that

if Starbucks does not adapt, its aspirations outside America, including Britain, could

soon run out steam.

6 http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/article4453831.ece

7

http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/article4453831.ece

Hence the research study was conducted in London to know the consumer awareness

about the Starbucks in terms of its Pricing Strategy and Brand equity. Managing and

measuring brand equity has become an important part to study. Managing brand equity

primarily involves managing the consumer’s mind. Starbucks must set objectives to

improve the brand equity as measurement is a management essential. Hence the study

will help us to know the understanding of consumer’s awareness towards Starbucks.

Brand equity helps in Asset management/leveraging, Consumer franchise (facilitates

loyalty) , Lower the communication costs, Improved prices/margins/market share,

Value to your Consumer, Recognition, consistency, confidence, image/status, etc.

Consequently taking into consideration the above benefits of Brand equity it has

become significant to know the customers awareness towards Starbucks as a brand.

Hence, the main purpose of this research was to know the consumer attitude and

behaviour towards Starbucks which will be studied in detail by focusing on Branding,

Pricing and competition.

8

RESEARCH DESIGN

Quantitative research method was used for conducting the above study. For the above

study a group of 120 respondents were selected in order to achieve the desired aims

and objectives. Considering the limitations of budget the research study was undertaken

on a small scale by selecting the respondents who are regular visitors of Starbucks.

Demographics was consider in the formation of research design which is given as

follows

DEMOGRAPHICS:

Gender: Male – 66 Female – 54

Age: 15-24 years - 45respondents

25-34 years - 48respondents

35 years and above- 27respondents

Income: £1 - £15,000 - 34respondents

£15,001 - £25,000- 28respondents

£25001 and above- 58respondents

Gender: - The number of male and female participants taken for the survey are approx.

same as it would help in understanding the brand equity amongst the two groups (male

and female).

9

Age group selected for this particular survey is from 15-24 years as it represents the

student category which can include students from high school and also at university

level. The second age group is 25-34 years as this group represents the working

population. Hence the band equity can be measured amongst this group

Scale Selection: The questionnaire was given to the respondents and it was based on

Likert summated scale which is mostly used to assess consumer attitude towards the

Starbucks in terms of a Brand. Every question had an option 1) Strongly agree, 2)

agree, 3) neither agree nor disagree, 4) disagree and 5) strongly disagree. The scale

was analyzed in the following form; it was rated from 1 to 5 in which 1 is strongly agree,

2 is agree, 3 is neither agree nor disagree, 4 is disagree and 5 is strongly disagree.

The research survey was conducted at different Starbucks outlets where all the regular

customers participated.

10

Research selected (Causal Research)

“Casual Research analyses the degree of influence of one or more independent

variables upon one or more dependent variables.”7 Casual research is concerned with

the establishing cause and effect relationships and it examines the degree of influence

of one or more independent variables upon one or more dependent variables. Casual

research is applied to evaluate affect of a particular change on existing norms. The

organization can build their business plan depending upon the hypothetical scenarios.8

Casual research helps market researchers to predict about such type of ‘Hypothetical

Scenarios’ which can be best explained with the help of following example, if the

company comes up with the new style of product packaging, casual research will help to

measure the impact of the new product packaging in the market. Conducting the casual

research the company will be able to make a decision whether to change the packaging

of the product and whether it is profitable for the company. From the above example it

can be concluded that casual research is a process by which we can see how the

current actions taken by the company affects the business in the future.9

The same situation is with Starbucks stores. Undismayed by the closedown of 61 of its

84 Australian stores and the beginning of a 600-store closedown programme in the

United States, Starbucks has discovered Britain as a substantial growing market with

unexploited potential. However experts consider that the sufferings that have troubled

Starbucks in U.S. and Australia could come to roost in United Kingdom. Starbucks

stores are the equivalent as they were 5 years ago. Starbucks should revaluate entirely

parts of the business, from signage to the course of customers, store design and

product range and mix. Consequently it becomes clear that if Starbucks does not

accommodate, its inspirations outside America, including Britain, could soon run out

steam.

7 Ray Kent, Marketing Research Approaches, Methods and Applications in Europe 8 http://www.marketresearchworld.net/index.php?option=com_content&task=view&id=799&Itemid=64 9 http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/article4453831.ece

11


http://www.marketresearchworld.net/index.php?option=com_content&task=view&id=799&Itemid=64

.

Therefore this research study was carried on to check whether closedown of Starbucks

stores has an affect over Brand Image perceived by target customers. Hence the 2

variables suggesting effect and cause relationship can be expressed as decline in

business and comprehended brand name and Image of Starbucks. Thus the research

study was acquitted to acknowledge the consumers consciousness about the Starbucks

in terms of pricing strategy and its Brand image. The aim of this research study was to

find out Consumer Attitude and Behaviour towards Starbucks in term of its Brand. The

research will be more focused on Pricing, Brand and Competition.

Sampling Process

Sampling method plays an important role in marketing research. Sampling process can

be explained as a method in which the information validity can be ascertained by

randomly selecting a sample from the entire population. The welfares of sampling

process are it economizes money, saves time, the data can be more precise, and faster

results.10

Defining the Target: - As the advert indicate, it’s the procedure of specifying the target

population. The respondent targeted for the research is no. of males and females which

is 66 and 54 respectively. Altogether the respondents chosen for this research are

London placed. As referred in our research objective store closedown have mainly been

in Australian and American countries, however the market condition is different in Great

Britain as the market is growing at a good speed. This is the main reason for choosing

Starbucks coffee shops in London for this particular research study, as London being

the capital for UK.

10 Quee, W.T., (1999), “Marketing Research”, Third Edition, Reed Educational and Professional Publishing Ltd

12

Demonstrating sample frame: - The customers at Starbucks are from different ethnic

background. Therefore the selection process for sampling cannot be done from a

specific document. Hence the survey study was utterly founded on the interviewer’s

delicacy which campaigners were supposed to be designated.

Determining Sample size: Sample size helps in deciding the accuracy suitable for the

research study, large number of respondents are generally selected to carry out the

survey, however because of the limited budget and allocated time constraints the

sample size selected was 120.

Sampling Method: - Non-Probability sampling was selected to carry out our research

study. In Non-probability sampling, sample is selected in which the chances of selecting

a case from the population of cases is not calculable since the selection is made on a

subjective basis. The selection of the sample is dependent on the personal judgment of

the researcher. The interviewer is given a set guidelines and it’s up to his or her

delicacy how the sample is conducted. This sampling method is mostly used for

shopping centre surveys so the main reason it has been selected for our Starbucks

research. Non-probability sampling methods include 3 types of sampling, 1) quota

sampling 2) Judgmental sampling 3) Convenience sampling. For conducting our survey

we have selected Judgmental sampling which is cheaper and takes less time.

13

DATA COLLECTION INSTRUMENTS

Questionnaire (Pre and Post Test)

Introduction

You are kindly asked to fill in this questionnaire. The questionnaire is for a study which

is conducted for a project as a part of our MA Marketing Management at Middlesex

University. Thank you for your time.

1) According to me Starbucks is one of the most popular Brands.

2) I visit Starbucks as compared with any other Coffee Shop, frequently

3) I consider it more prestigious to have meeting with my colleagues at Starbucks

4) I would consider keeping starbucks merchandise in my home (consider keeping

starbucks merchandise in my home)

5) Starbucks logo is easily recognizable as compared to other brand logos (McDonalds,

Costa) (logo is easily recognizable as compared to other brand logos)

6) Is Starbucks LOGO easily recognisable to what they offer?

14

7) I think Starbucks should offer some discount for students (Starbucks should offer

some discount for students)

8) Starbucks eatables are very much costly?

9) I would switch to Starbucks from the current place I eat breakfast or recommend it to

others if Starbucks reduces prices.

10) I would not mind spending £2 - £3 for a meal (coffee and sandwich) at Starbucks

11) The promotional activities of Starbucks are better than other coffee shops

(Promotional activities of Starbucks are better than other coffee shops)

12) Starbucks needs to have more number of branches as compared with other coffee

shops (Starbucks needs to have more number of branches)

13) Starbucks is superior as compared with other coffee shops in terms of comfortable

seating and good ambience (Comfortable seating and good ambience.)

14) As compared to Starbucks other fast food joint and coffee shops are coming with

competitive offers to attract customers (competitive offers to attract customers)

15) Is Starbucks Menu easily understandable than Other Coffee Shops (Costa & Rittiza)

(Starbucks Menu easily understandable than Other Coffee Shops)

16) Is Starbucks Overall Service better than other coffee shops? (Starbucks Overall

Service better than other coffee shops)

17) The Starbucks Coffee Superior in taste as compared to its rivals (The Starbucks

Coffee Superior in taste as compared to its rivals)

18) I visit Starbucks once or twice in a week (I visit Starbucks once or twice in a week)

19) I am familiar with Starbuck's Food Menu (I am familiar with Starbuck's Food Menu)

20) I think Starbucks provides very much friendly service compared to its rivals

15

Demographics

Gender

Male Female

Age

15-24 Yrs 25-34 Yrs 35yrs and above

Income Group (per annum)

£5 - £15,000 GBP

£15,001-£25,000GBP

£25,001GBP and above

Occupation Student Working

16

Interpretation of above questionnaire is as follows.

Variables (1) and (5) were made to ascertain the relative brand value and image of the

company as put out by the Swot analysis of the Data Monitor; this is also backed by the

inclusion of the brand Starbucks as one of the top hundred brands of the world by

Interbrand in 2008. Articles also written by academic scholars suggest that brands must

“inspire and captivate customers”, providing an avenue for the consumer to be

compelled to relate his/her aspirations dreams and goals to the brand product or

service. Gobe explains, (as cited by Thompson et. Al): “consumers today not only want

to be romanticized by the brands the bring into their lives, they absolutely want to

establish a multifaceted holistic relationship with that of the brand, and this means they

expect the brand to play a positive, proactive role in their lives.” We also seek from

variables (3), (4) and (5) how strong the brand image is reflected in the consumers’

lives.

The above statement given by Gobe serves as a guide in measuring how much of an

attachment the consumer has for the brand Starbucks, given the recent recession and

the premium prices Starbucks issues out to the consumer. It is no conundrum to say

that Starbucks being in a specialty coffee industry offers high end prices as this is the

case (Larson, 2008), but due to the present decline in consumer spending and the

switching of coffee loving consumer from premium goods to cheaper, no frills and more

cost effective spending, competitors like costa for example who despite the slowdown in

the economy have been opening more stores especially in unconventional locations like

colleges and airports, also setting itself up as a differentiated coffee product with the

same traditional brewing it came up with in the seventies when it was founded and the

fact the company have been marketing their ethics in the sense that they aid under

privileged coffee communities; all this in the leeway in building a strong consumer

loyalty. Other competitors like McDonalds in as much as they were not mentioned in the

survey are a strong indication of growing competitive problems for Starbucks as they

plan on opening about 1200 McCafe stores in Europe including the United Kingdom. As

Starbucks has had to close some coffee shops amidst poor sales, variables (12) seeks

17

to examine the probable marketing strategy of Starbucks in opening shops right next to

each other and their relative success.

Previous research had been undertaken in discovering the cultural atmosphere or

cosmopolitan motif of Starbucks coffee shop (Thompson et al); results indicated that

customers seemed to prefer coffee shops ran by private individuals as they seemed

more authentic and less sterile. Indeed it seemed that coffee shops whether they were

ran by a corporation or just by a single owner provided more than just a place to grab a

cappuccino. Starbucks previous success on the other hand had been attributed to its

association of the ambience and warmth of a pleasant European cafe (Shultz, 1997;

Shields, 2002). This then proposes a question (as seen in the thirteen variable): Does it

still maintain the same atmosphere or has it subtly and unconsciously changed over

time to become known as a pale and drab imitation of its former image?

The VIA instant coffee brand recently launched by Starbucks at a reduced price of 33p

to encourage frugal minded customers purchase from their store seems like a

reasonable marketing strategy to combat the poor sales due to the recession. On the

other hand, their core customers might be less inclined to purchase the product as it

might contradict the premium quality usually associated with their brewed coffees. The

questionnaires given in the research survey aim to find an indication of any reduction in

the brand attitude of the consumer with an association of its premium pricing or a rise

and fall in the customer loyalty if the company does decide to offer more reductions or

promotions regarding their products. The survey taken by different income groups,

gender and students as well as working class will indicate what demographic the

company is meant to focus their marketing strategy on in terms of pricing, competition

and brand.

18

DATA ANALYSIS, FINDINGS AND RECOMMENDATIONS

CHI SQUARE TEST ANALYSIS

Hypothesis for Branding

ANALYSIS I

Q1 and Q2

Starbucks brand has no impact on me on visiting Starbucks.

Hypothesis 1

Value df

Asymp.

Sig. (2-

sided)

Pearson Chi-

Square

24.783(

a)4 .000

Likelihood Ratio 27.487 4 .000

Linear-by-Linear

Association1.060 1 .303

N of Valid Cases 120

a 5 cells (55.6%) have expected count less than 5. The minimum expected count is .33.

The statement is rejected, as the Sig value is 0.00 which less than 0.05

Therefore following Hypothesis can be accepted.

19

ANALYSIS II

Q1 & Q3

The brand image of Starbucks does not give me an incentive to have a business

meeting with my colleagues

Hypothesis 2

Value Df

Asymp.

Sig. (2-

sided)

Pearson Chi-

Square

15.064(

a)6 .020


Linear-by-Linear





Therefore following Hypothesis can be accepted.

The brand image of Starbucks gives me an incentive to have a business meeting with

my colleagues

20

Hypothesis for Competition

ANALYSIS I

Q18 and Q19

I rarely visit Starbucks as the menu does not appeal to me

Chi-Square Tests

Value df

Asymp.

Sig. (2-

sided)

Pearson Chi-

Square

24.783(

a)4 .000


Linear-by-Linear





Therefore following Hypothesis can be accepted

I visit Starbucks as the menu does appeal to me.

21

ANALYSIS II

Q19 and Q 20

I rarely visit Starbuck as the service is not up the standards.

Chi-Square Tests

Value df

Asymp.

Sig. (2-

sided)

Pearson Chi-

Square

13.488(

a)9 .142


Linear-by-Linear



a 12 cells (75.0%) have expected count less than 5. The minimum expected count is .09

22

Hypothesis for Pricing

ANALYSIS I

Q1 and Q8

The premium prices do not hold true to Starbucks products perceived quality

Chi-Square Tests

Value df

Asymp.

Sig. (2-

sided)

Pearson Chi-

Square

17.788(

a)4 .001


Linear-by-Linear

Association.005 1 .944




Therefore following Hypothesis can be accepteds

Starbucks premium prices make it a highly popular coffee shop

23

ANALYSIS II

Q9 and Q14

I would not prefer going to Starbucks even if other coffee shops come up with better

pricing offers

Chi-Square Tests

Value df

Asymp.

Sig. (2-

sided)

Pearson Chi-

Square

6.972(a

)6 .323


Linear-by-Linear

Association.001 1 .969



The Hypothesis is accepted, as the Sig value is 0.323 which greater than 0.05

24

CORRELATION TEST ANALYSIS

ANALYSIS I

Q16) Is Starbucks Overall Service better than other coffee shops

Q 18) I visit Starbucks once or twice in a week

Correlations

Q16 Q18

Q16 Pearson

Correlation1 .390(**)

Sig. (2-tailed) .000

N 120 120

Q18 Pearson

Correlation.390(**) 1


N 120 120

Correlation is significant at the 0.01 level (2-tailed).

The relation between overall service of Starbucks and Frequency of customer visits to

Starbucks is medium, since R is 0.390

25

Frequency of customer visits to Starbucks is not much depending on overall service of

Starbucks.

ANALYSIS II

Q 4) I would consider keeping Starbucks merchandise in my home

Q 6) Is Starbucks LOGO easily recognisable to what they offer

Correlations

Q4 Q6

Q4 Pearson Correlation 1 .661(**)


N 120 120

Q6 Pearson Correlation .661(**) 1


N 120 120

Correlation is significant at the 0.01 level (2-tailed).

The relation between Awareness of Logo and Brand Loyalty is very strong, since R is

0.661

Brand loyalty of Starbucks is very much dependent on Awareness of Starbucks Logo.

26

Limitations

The above observations state that the Brand image of Starbucks is intact inspite of the

store closures in different countries. Consumers are still attracted to the Starbucks

brand image inspite of the decline in the sales and would consider it as a global brand

based on its past reputation. The brand equity is one of their major strengths of the

industry relating the consumer to their value and attachment to the cosmopolitan

lifestyle recognized in the brand. It becomes evident from the above hypothesis that

Starbucks is superior than its rivals in terms of different aspects like- the food and

beverages offered to the customers in terms of its brand reputation, The taste and

quality of the different coffee and its other components are better in more than one way

from its competitors.

Pricing can be one of the main components for its popularity. Starbucks although

popular needs to come up with more offers in terms of pricing to gain its popularity back.

This could be attributed to the current economic slowdown thus making more customers

selective in terms of frugality when going to a coffee shop. The hypothesis equates

premium prices to better quality from the consumer’s perspective. The premium pricing

plays a significant role in perceiving Starbucks as a leading Brand from customers’ point

of view.

27

References:-

Kent, R. (2007) Marketing Research: Approaches, Methods and Applications in

Europe. London: Thomson Learning.

Quee, W.T., (1999), “Marketing Research”, Third Edition, Reed Educational and

Professional Publishing Ltd.


http://ezinearticles.com/?Starbucks-Coffee---The-History-and-Background-of-

Starbucks-Coffee &id=888962


http://www.telegraph.co.uk/finance/personalfinance/2793942/Would-you-save-your-

Starbucks-from-closure.html


http://www.marketwatch.com/story/economic-slowdown-restructuring-costs-batter-

starbucks

http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/

article4453831.ece

http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/

article4453831.ece

http://www.marketresearchworld.net/index.php?

option=com_content&task=view&id=799&Itemid=64.

28
















om namah shivay srinathji 4003

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