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Video Case 2.1

Starbucks: Staying Local While Going Global Through Marketing Research

1. Students should search an Internet database using the key words “coffee”, “coffee shops”, “coffee consumption”, etc. to identify the relevant data. They should also visit Starbucks’ web site (http://www.starbucks.com).
2. Starbucks can determine the answers to such questions by conducting qualitative research. Both focus groups and depth interviews can be useful. Focus groups can generate new insights and ideas, while depth interviews can uncover hidden motives, values, and beliefs. Using qualitative research, the company found that consumers are looking for a coffee house experience that elevates coffee drinking to an art form and coffee houses to the place where Americans choose to relax and socialize. Through extensive marketing research studies, Starbucks created a place where you can meet and drink good coffee that did not resemble work or home, but fell somewhere in between.
3. Personal interviews at representative coffee shop locations of Starbucks and other chains could be used to determine the image coffee drinkers have of Starbucks and other coffee shop chains. This method offers several advantages: complex questions can be asked; it is very good for the use of physical stimuli; very good sample control; high quantity of data; and very good response rate.
4. Personal observation method could be used at a sample of Starbucks coffee shops where the new coffee is available for purchase. A trained observer records the reactions of those customers who order and drink the new coffee brand.

5. A semantic differential scale would be appropriate for measuring the image of Starbucks. Premium -- -- -- -- -- -- -- Commodity Relaxed -- -- -- -- -- -- -- Tense Cozy -- -- -- -- -- -- -- Uncomfortable Fancy --

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