In response to Emily Chen’s “$4 Milkshake Anyone?”
Emily’s blog is really interesting and it explains a lot about Starbucks’ profitability from giving customers “valuable experiences”. I always knew Starbucks’ prices were expensive, but I never really thought about what it does to justify its high prices; I just thought it relied on coffee addicts to buy its pricey beverages. I am especially surprised by its implementation of psychological techniques to make its atmosphere more appealing to customers. I never realized Starbucks has round-edged tables to seem more welcoming and single seated tables for study. I did, however, notice the “Starbucks lingo” used, but it can be intimidating for those who don’t understand it, which may work against their whole “welcoming image”. Also, I actually never thought of a Frappuccino as just a milkshake; I have to admit, Starbucks had me fooled that it was something more special and delicious.
On a side note, this blog reminds me of a book I read a while ago “The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary”.
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The book talks about the 5 Principles that Starbucks uses to succeed.
1. Make it your own
2. Everything matters
3. Surprise and delight
4. Embrace resistance
5. Leave your mark
Within the first two principles, the book explains how a company should connect with customers on a personal level. This principle must be why Starbucks baristas are asking for each customer’s name to write on their drink orders; it gives the customers a feeling of friendship. It also discusses paying attention to every detail in the store and to customer satisfaction, which makes sure people receive the highest quality possible. I guess this “Starbucks experience” is what has given Starbucks a comparative advantage amidst the competitive world of coffee shops.
Michelli, Joseph A. The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary. New York: McGraw-Hill, 2007. Print.