Case ID: 504016     Solution ID: 31012     Words: 1251 Price $ 45

Starbucks Delivering Customer Service Case Solution


For customers, Starbuck’s coffee is just more than an ordinary coffee. Since its origination, Starbucks has completely revolutionized the way in which coffee is experienced outside home. Customer service has been one of the top most priorities for Starbucks as they aim for continuous enhancement of their value proposition. In the wake of the increasing number of beverages marketed today, the brand has been struggling in attracting the appropriate workforce. One of the reasons that has led Starbucks to enter into an investment of around $40 million is to create a massive impact on customer satisfaction. It is believed to have an ability of creating an impression throughout the stores that will simultaneously achieve multiple objectives.

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Questions Covered

1. What factors accounted for the extraordinary success of Starbucks in the early 1990‟s? What was so compelling about the Starbucks value proposition? What brand image did Starbucks develop during this period? 

2. Why have Starbucks‟ customers satisfaction declined? Has the company‟s service declined, or is it simply measuring satisfaction the wrong way? 

3. How does the Starbucks of 2002 differ from the Starbucks of 1992? 

4. Describe the ideal Starbucks customer from a profitability standpoint. What would it take to ensure that this customer is highly satisfied? How valuable is a highly satisfied customer to Starbucks? 

5. Should Starbucks make the $40 million investment in labor in the stores? What‟s the goal of this investment? Is it possible for a mega-brand to deliver customer intimacy?