Starbucks Customer Service

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The retail environment is filled with competition creating a need for each individual establishment to offer its customers more than just a product. The producers of the product have to provide an experience in addition to the product, an experience that creates loyal customers and encourages repeat visits. Stores, such as Starbucks, have capitalized on this idea and have expanded from 1 store in 1971 to over 11,784 locations as of July 2, 2006 (Starbucks Coffee, 2006). The coffee sold at Starbucks is perceived as a premium coffee and the price charged for this product is much greater than the price charged at other locations. The question is what warrants this price difference, and why are consumers willing to pay more for Starbucks coffee …show more content…

There are a variety of factors to be considered in reference to this topic, including understanding the basic definitions of the customer experience, defining the difference in low-service and high-service stores, and determining the effects of these experience aspects on consumer choice. Ultimately, it is critical to determine whether this aspect of retail operations, the customer experience, has an overall effect on profitability or is just an operational decision that provides a competitive advantage over those who sell greater amounts of lower priced products, with little to no effect on …show more content…

This includes all aspects prior to the purchase and all treatment they receive during their visit. This is a crucial operational activity and can convert customers to repeat customers or drive good customers away. This process can be further divided among four areas: personnel, product offering, consumer convenience, and shopping elements, all of which contribute equally to effective customer service The personnel aspect referrs to the person that operates the store and interact with customers. These employees are a direct reflection of the organization and are often the first contact a customer has with an organization. These are only a sampling of necessary traits but are necessary within the personnel employed in customer service roles. Product offering is an aspect that reflects associated issues with the product and its effect on the customer, and is a direct reflection of how this product is handled. The product is the most important aspect of the business and can have a tremendous affect on customers and their decision to become repeat buyers. Inaccurate descriptions and incorrect labeling can have a very negative effect on sales, in fact, this has been the demise of many

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