image from: http://www.everydaymoney.ca/2010/04/subway-starbucks-giving-away-free-coffee-this-month.html 

Article taken from: http://www.voteforus.com/starbucksmarketingstrategy.html

Would anyone think about why a cup of Starbucks coffee is that expensive while they are drinking it? In the advertisements of specialty coffee shops, they always emphasize the good quality of the coffee bean they use. However, the cost of coffee bean does not really decide the cost of a double cappuccino at specialty coffee shops, as most of the cost is spent for other reasons. One big part of the cost was the labor costs at the coffee shop, and another big part is the amount expended in shop rent, marketing and general administration. And many of us do know it, but not many of us think we are over-charged or it’s not worth the price, because otherwise, there would have been no customers left for Starbucks. Indeed, Starbucks was so good at their marketing strategies, succeeding to make consumers think their products as a luxury, something different from the coffee you might get at Place Vanier dining hall.