Case Study

1st and perhaps most obvious customer need is price the price of a product can certainly be a key factor is considered when making a purchase for the business this means setting a price that's affordable the type of customer the product is aimed at is this product set a reasonable price this doesn't mean setting the price too low if something is priced too low it can be seen as being poor quality if the product price too high then the product will be unaffordable for the target market is the product in question value for money meaning is the price and quality match correctly for instance Starbucks has adopted premium pricing strategy despite this they still dominant in many countries as they position themselves as being a little pricey but worth it through clever marketing and strong brand this shows that customers will pay a premium for a better product good service and in Starbucks case a relaxing welcoming environment businesses need to bear this in mind when charging higher prices why is your product worth paying more for than your competitors quality relates to the standard of the product or service being offered customers always expect some level of good quality no matter how much they pay for a product or service generally there was pain a low price will expect a lower level of politics and those paying a higher price will expect a higher level of quality but also a better all round experience when purchasing if you're buying a Rolls Royce expected better all round service than when you bought a used Toyota from a business perspective they obviously want to make their product as high quality as possible but this needs to be balanced with price again the business needs to ensure that overall product offering is quality if they're going to charge a premium price compared to their competitors let's take Starbucks and coffee itself as a product you can buy a Cup of instant coffee for 50 peak at low end cafe however in Starbucks case one of their top of the range coffees can cost as much as 4.00 this is a massive difference Starbucks and is not just offer the better quality product but they also need to offer added extras that contributes to the overall quality of their product a clean relaxing environment friendly service loyalty schemes and their famous name on the court which psychologically makes customers feel like they're not strangers but more friends with the Starbucks brand choice choice is very important many businesses have a range of products available to suit different groups of customers customers have different needs and desires when it comes to buying certain items they might want different styles or sizes or even completely different products altogether ideally you want your customers to have a wide product range not a narrow one as this allows the business to cater to a wide range of customer needs Starbucks has over 87,000 different combinations of drinks available consisting of different flavours size is hot or cold and he dietary requirements this means customers can mix and match depending on their specific taste price preference and quality convenience convenience relates to the personal product being easy quick and German less hassle for the customer customers want convenience will often pay more for getting a product in the most convenient way possible convenience can be massively important and I couldn't talk about convenience without mentioning Amazon their success is mostly down to convenience customers can sit at home open up an app with all their details already pre filled find a product and simply swipe to buy it the item is then delivered that day or the next day free of charge Starbucks convenience comes in the form of convenient locations in city centres and service stations they have also increased the convenience of their offering by recently developing their app to allow online orders and pickups plus drive thru locations popping up all around the UK a drive through is extremely convenient for customers that want Starbucks on their way to work without even having to leave the comfort . 1- what are the customers need identify, explain and provide an example from the case study Customer need Explanation Starbucks example What are the advantages and disadvantages of providing a variety of choices for customers: Advantages: Disadvantages: A consumer need is something one has to have for survival, whereas a consumer want: (1 point each ) is something one would like to have but does not require it for survival. is something one also requires for survival, but to a lesser extent. is something one must immediately gratify in order to satisfy a need. is something one requires for survival to a greater extent than a need.

1. Identify the customer needs mentioned in the case, explain and provide an example from Starbucks. (Choose two only)

Customer need	Explanation	Starbucks example
	(2points )	(2points )
	(2points )	(2points )

2. What are the advantages and disadvantages of providing a variety of choices for customers:

1. Advantages: (1 point each )

2. Disadvantages: (1 point each )

3. A consumer need is something one has to have for survival, whereas a consumer want: (1 point each )

1. is something one would like to have but does not require it for survival.
2. is something one also requires for survival, but to a lesser extent.
3. is something one must immediately gratify in order to satisfy a need.
4. is something one requires for survival to a greater extent than a need.