1. At Starbuck’s Coffee Shops, coffee drinkers have the option of sipping their lattes and cappuccinos while surfing the internet on their laptops. These connections are made via a connection typically provided by a wireless firm such as T-Mobile. Using a credit card, customers can buy internet time in various packages. A one-hour package currently goes for an average price of $6. A day pass that is good for any time in the next 24 hours sells for $10. A seven-day pass sells for about $40. Discuss these pricing tactics as well as quantity discounting. How might Starbucks ensure that the right buying group is purchasing the best package option in order to capture the maximum amount of consumer surplus from each buyer market?

Answer rating: 100% (QA)

Starbucks employs various pricing tactics and quantity discounting strategies to maximize consumer surplus and capture the right buying group for their internet time packages Lets discuss these tactic... View the full answer