Question

Pricing Strategy for Starbucks

• Describe pricing of product or service for Starbucks

• Strategies used for pricing of product or service for Starbucks

Answer 1

To state the value of a product pricing is done. High value products are given with an intention to provide with the best to the customers. Best coffee is used along with the efficient staff which in turn is shown in the pricing of the coffee. As they offer premium services and premium quality along with the best experience. To remain in the competitive market, Starbucks comes up with so many offers such as bottomless at $1 in which a customer can refill his/her coffee as many times he/she wants. Starbucks is coming up with so many stores all through the world.

Focusing on relative pricing is done from premium things. Coffee beans are also sold at many grocery stores in order to have low-cost coffee items e.g. drip coffees. In fact Starbucks provide with the low cost products with the pricing quiet high, which shows that they provide reason for the higher price as to the other brands.

There working is simple, if they provide with a good product of course in return will pay the good price. This means quality is the prime key for their success. Product is never is been compromised and even strict actions are taken in order sustain the quality and most importantly the customer satisfaction through service.

In order to maximize profits few of the drinks and sizes are increased. This is done with an intention that the customer surplus is not been affected from the regular ones from where more value can be charged. This is done with an intention that the company is having full profits from their customers who are always ready to pay.