Question

Case Assignment: Starbucks

Some foods and drinks just taste better at different times of year, and many businesses have been taking advantage of the seasonal food trend for years. Nothing says winter like eggnog or gingerbread. Nothing says summer like a hotdog and a cold drink. And nothing says fall quite like Starbucks’ Pumpkin Spice Latte.

The drink was released for fall 2016 on September 6 to the general public, and on September 1 to rewards members, marking its 13th consecutive seasonal debut. Nicknamed “PSL,” it is Starbucks’ most popular seasonal drink of all time.

In spring 2003, after the team in the “Liquid Lab” successfully developed the Eggnog Latte and Peppermint Mocha for the winter season, they were tasked with adding a new beverage to the fall espresso lineup. After sampling pumpkin pie followed by sips of hot espresso, the team thought they might be on to something.

“Nobody knew back then what it would grow to be,” said Peter Dukes, director of espresso Americas for Starbucks. “It’s taken on a life of its own.” The Pumpkin Spice Latte was tested at 100 stores in Vancouver and Washington, D.C., in fall 2003.

“Within the first week of the market test, we knew we had a winner,” Dukes said. “Back then, we would call store managers on the phone to see how a new beverage was doing, and you could hear the excitement in their voices.”

The following year, the beverage was released to all of the company’s U.S. locations, and it has been synonymous with fall ever since. The Pumpkin Spice Latte is so popular that an average of 3,000 fans tweet each day using the hashtag #PSL to show their enthusiasm.

The summer of 2014, the company even created an official Twitter account for the Pumpkin Spice Latte (@TheRealPSL). They use the page to post information about the drink’s availability and fun promotional photos. After the 2016 release, fans were tagging the account in tweets welcoming it back for the season.

Also joining the Pumpkin Spice Latte in the 2016 seasonal drink lineup was Starbucks’ new Chile Mocha. “When we think about fall, often people think about warmth and spice, like cinnamon and apple pie,” said Michelle Sundquist, Starbucksʼ senior product developer. “We decided to take that idea in a new direction with chocolate and a bit of heat.” Sundquist was on the team that created the new fall beverage.

            The Chile Mocha is made with espresso and steamed milk infused with a cocoa and cinnamon Chile powder, topped with a dollop of whipped cream and finished with a sprinkle of Chile Mocha topping consisting of ancho and cayenne chili pepper, cinnamon, paprika, sugar, and a touch of sea salt. “The first sip should be warm and chocolatey, quickly followed by the creaminess of the whip and just a kiss of sweet and savory heat all at once,” said Sundquist.

            For many, September 6 seems early to release a fall seasonal beverage, but Starbucks was not the first to make their drinks available in 2016. Dunkin’ Donuts released their PSL on August 29, and McDonald’s released theirs on August 31.

Multiple choice

1. Which of the following is an example of consumer behavior?

a. purchasing a PSL

b. drinking a PSL

c. tweeting a picture of their PSL purchase

d. All of these are examples of consumer behavior.

2. Pumpkin Spice Latte fanatics could be considered a(n) __________ of coffee enthusiasts.

a. reference group

b. subculture

c. social class

d. opinion leader

3. A person’s co-workers belong in their __________ membership group.

a. aspirational

b. non-aspirational

c. primary

d. secondary

4. A consumer’s decision making is influenced by their __________.

a. gender

b. age

c. lifestyle

d. personality

e. All of these

5. If a customer remembers only the good taste of the PSL and not the sugar headache it gave them the last time they had one when ordering their next one, they are experiencing __________.

a. perception

b. selective exposure

c. selective distortion

d. selective retention

Answer 1

1. Which of the following is an example of consumer behaviour?

Answer: (d) all of these are examples of consumer behaviour.

2. Pumpkin Spice Latte fanatics could be considered a(n) ____ of Coffee enthusiasts.

Answer: (d) Opinion leader

3. A person's co-workers belong in their ____ membership group.

Answer: (d) Secondary.

4. A consumer's decision making is influenced by their ____.

Answer: (e) All of these

5. If a customer remembers only the good taste of the PSL and not the sugar headache it gave them the last time they had one when ordering their next one, they are experiencing____.

Answer: (d) Selective retention.