Being a premium coffee brand, every cup of a Starbucks beverage delivers phenomenal value to customers by just being exclusive. The psychological benefit that a customer derives from every tumbler of the Java Chip Frappuccino is a key takeaway. Loyalists the world over swear by "the Starbucks experience". The coffee chain goes the extra mile in making each customer feel special.Simple gestures adopted by Starbucks, such as scribbling the customer's name on on the coffee cup have ensured an unbelievable number of repeat walk-ins. So much so that, die hard enthusiasts will not visit a coffee house unless it's Starbucks.The average Starbucks customer visits the store 6 times per month while a loyal 20% of customers go to the stores 16 times per month.
The ambience that each Starbucks cafe
offers adds to the value of every Frappuccino. Here are some additional
elements that add to the customer value:
- Free
wi-fi at most outlets
- Free
coffee on birthdays
- Loyalty
cards
- Seasonal
specials
Moreover, Starbucks believes in creating value
not just for its customers, but also for its employees. This is reflected in
the company's policy of addressing each employee as a "partner". At
$300 million, Starbucks spends more on healthcare insurance for its employees
than on coffee beans.
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Theoretically speaking, customer perceived value is the difference
between a customer's evaluation of the benefits of a product or service in
comparison to the cost that she may incur to obtain the same.
In our case, though the cost of an average Java Chip Frappuccino may
well be higher than any regular cup of coffee, the perceived benefits
associated with it, are what make it a high value proposition in the minds of
consumers.
