The customer’s perceptions play
an important role in any business. In Starbucks’ case study, high-quality
coffee that provided by the company has created an intense influence on the
customers’ buying behavior (Newman and Cullen). Ever since
Starbucks was founded by Jerry Baldwin, Gordon Bowker, and Zev Siegl in
Seattle’s Pike Place Market in 1971, the company has always placed quality as
its top and main priority. This has proven by how Starbucks always aims to
provide the best quality of ingredients, along with brewing equipment to make
sure that every single customer would experience the most pleasurable coffee
moments.
To achieve the best customers’
perceptions, Starbucks has been changing its logo several times. The story
behind the logo of Starbucks starts in the year of 1971. At the start, the logo
of Starbucks was a seductive Siren, which gained many complaints. Later on,
Starbucks modified its logo by using delivery trucks, which became problematic
due to the logo was presented on a huge gage on the trucks. Then, when Howard
Schultz came up as its CEO in the year of 1986, he changed the logo again and
restyled Siren’s hair to cover up her mermaid’s body.
A few years later, between
1992-2011, the next Starbucks’ logo again changed and launched on every single
cup of Starbucks’ coffee that also made the customers feeling proud to carry it
along. Thus, the logo is really able to make different perceptions from its
customers regarding the brand of Starbucks. In addition to this, a point that
cannot deny that Starbucks nowadays has become an exclusive brand in the
international market due to the perceptions of its customers as well. Then
again, these positive perceptions gained by Starbucks from its unique and
exclusive logo.
Attitudes & Attitude
Formation on Starbucks’
The original founders of
Starbucks could be considered as passionate people around coffee. Their main
mission actually was not to gain any profits, but rather to educate their
customers about the luxury and delight of the world-class coffee that they
provide. They also desire to give an amazing knowledge for their customers
about the brewing way of coffee and also about how to maximize the high quality
of the coffee itself. The three founders of Starbucks were never eventually
inspired to shape the business realm. They are basically the type of people who
loves to hang out for hours with others who had the same and sincere interest
in figuring out about the greatest type of coffee across the world. This
attitude then spread out to Howard Schultz and other employees in Starbucks.
However, Schultz is of the idea
that if we would offer a product that customers are not familiar to, which is
something beyond superior to a product that they could ever imagine, then the
company needs time to develop their palettes. Furthermore, he also has a view
that by educating the customers, we could shape a discovery sense along with
the delight and loyalty from the customers that ultimately, would able to bond
the customers with Starbucks.
Slowly but sure, Schultz changes the
image of Starbucks, and make sure that the company is not only educating its
customers about high-quality coffee. Instead, Starbucks is also educated its
customers on how to enjoy and delight the coffee itself. By changing the
attitude of the company, Starbucks has also formatted the attitude of customers
toward its brand. Nowadays, we can see how people view Starbucks not only as a
lecturer of coffee for its customers. More than that, the company has become a
lecturer of how the customers around the world should enjoy their delight
experience in consuming their coffee.
Groups & Social Media on
Starbucks’
Reference groups describe as one
or further individuals that any individual or company uses as a foundation to
compare or point out the reference in shaping both affective and cognitive
responses, as well as performing behaviors. Reference groups are able to expose
any individual toward new and different behaviors and lifestyles. These groups
create densities meant for conformity that might impact the real product along
with the brand options. The customers use informal groups as a basic source to
get accurate information about products. In fact, the customers are also using
informal groups as a structure of reference in evaluating the product as well (Shareef,
Mukerji and Dwivedi).
In the case of Starbucks, the
company took part in a growing movement to restrict single-use plastic straw in
2018. Starbucks was also announced that the company would remove this type of
straws from all of its stores through 2020. The reason behind this is due to an
article which written and published by the conservative Reason Foundation,
which declared that the Nitro lids Starbucks would able to create a broad use
for plastic more than a mixture of plastic straws and recent lids that the
company has. Numbers of social media users also have acknowledged that
Starbucks’ Nitro lids are thicker and might harm the environment (Mahdawi).
By doing this, Starbucks’ case
has proven that the references groups and social media could really influence
on the consumers' behaviors toward its products. The company seems really
realizes that it could also able to affect its brand image in front of the
loyal customers. This is aligned with a theory which mentioned that the
reference groups are used in advertising outcomes in enhanced brand
responsiveness since these groups have the ability to drag the attention from
the public by using their popularity.
Ethical Dilemmas on Starbucks’
From the case study of Starbucks,
the company seems to believe that social responsibility is considered as an
approach of communicating with the public within the specific area of
formation. Starbucks also has been performing as a company responsible for its
entire business activities that related to the public or society. An example of
ethical dilemmas that Starbucks had to suffer was the act of banning single-use
plastic straw in 2018. To a certain extent, the exchange of Starbucks to Nitro
lids senses as an approach to connect its company ethic solution from the
increasing anti-straw protests, slightly than a significant initiative for its
sustainability. The quick response from Starbucks in removing its single-use
plastic straws was viewed by some people only as a way to get out of the
critics from the public and society.
This is considered as an ethical
dilemma since the Nitro lids would be more expensive than its current lids. On
the other hand, since Starbucks is a company with a famous and exclusive brand,
it needs to maintain a good brand image in front of its loyal customers as
well. For this reason, Starbucks has made a great step in this case. As
research by Carroll (1979) purposed that Corporate Social Responsibility is
widely accepted as an obligation that modern companies must apply in their
business activities. The reason is obvious, Corporate Social Responsibility or
CSR refers to the requirement for the companies to become a great corporate
citizen, which included in protecting the environment and also contributing the
welfare to the society as well (Carroll). In addition to
this, another survey has reported that 30% of customers are quite concerned
about environmental issues. For this reason, Starbucks has proven its CSR by
making a strategic solution for the case of Nitro lids.
Furthermore, Starbucks has also
made a milestone with giving a contribution to pay the university tuition fees
for employees in the UK who aim to get a degree from a university in the US.
This could be considered as another prove made by Starbucks in performing the
CSR in its business activities (Barr).
References on Starbucks’
Barr, Sabrina. STARBUCKS TO START PAYING UK
EMPLOYEES’ TUITION FEES. 2 April 2019. <https://www.independent.co.uk/life-style/food-and-drink/starbucks-pay-university-degree-tuition-fee-uk-employees-education-a8850426.html>.
Carroll, Archie B. "Corporate social
responsibility: Evolution of a definitional construct." Business &
society (1999).
Mahdawi, Arwa. Starbucks is banning straws – but is
it really a big win for the environment? 23 July 2018.
<https://www.theguardian.com/business/2018/jul/23/starbucks-straws-ban-2020-environment>.
Newman, Andrew and Peter Cullen. Retailing:
Environment & Operations. Cengage Learning EMEA, 2002.
Shareef, Mahmud Akhter, et al. "Social media
marketing: Comparative effect of advertisement sources." Journal of
Retailing and Consumer Services (2019): 58-69.