I need assistance with the asterisked points on the below paper section that states pricing.

Below is what I wrote but the asterisked points I still need assistance with Please.

*The discussion here stands further elaboration. What are their pricing objectives? *All three influences the pricing decisions are subject to (i.e., influences from demand side, from supply side, and from environment) need to be briefly discussed.

Starbucks's pricing strategy is complex and delicate that based on the target market and combination of premium pricing, geographical pricing, psychological pricing strategies. Starbucks is clearly a premium priced coffee seller. Starbucks sets its prices of high value at moderate cost or "you get what you pay for". The strategy reveals as a product is priced relatively high because it offers more value than just a commodity in the form of high quality, special features, and prestige. Starbucks price is justified due to its premium quality of the products along with the great customer experience. Commitment to provide excellent service, great environment as well as to remove GMO ingredients ensures customers of premium quality of products for extra money customers pay. When people are getting a good deal, individual are willing to pay a higher price. In addition, Starbucks set a premium price because customers pursue the luxury brand image. Starbucks high prices are the result of pursuing product differentiation business strategy and capitalization on high level of customer loyalty (Dudovskiy, 2017). Thus, the strong luxury brand identity drives sales despite higher price. The pricing strategy reflects the consistency and a willing marketplace. In fact, Starbucks has raised prices in the past, when the actual costs of coffee decreased. The price for standard Arabica, the benchmark for premium coffee, fell 44 percent in world markets by July 6, 2015. Some companies lowered prices including Dunkin' Donuts that cut the price by an average of 6 percent in the response of lower coffee price. Starbucks left its packaged coffee unchanged. On the same day, "Starbucks said that its costs were rising and that it was raising the price of much of its brewed coffee by 5 to 20 cents a cup" (Sommer, 2015). This is proven that Starbucks has priced its offerings based on market demand and on brand association and not on the price of the raw coffee bean. Perhaps, the raw material costs only a little percentage in total cost of a cup of Starbucks coffee. Jim Olson, a spokesman of Starbucks said the cost of raw "coffee accounts for less than 10 percent of Starbucks's overall costs. The premium Starbucks experience requires considerable spending on real estate and wages, and on extensive employee benefits, equipment, distribution and marketing" (Sommer, 2015). The geographical pricing is another important element of Starbucks pricing strategy. "After the economic crisis, Starbucks focused specifically on direct segment discrimination by setting its price architecture based on the elasticity of certain segments to price (Png & Cheng, 2001). This applied to differentiated pricing across different geographic locations. The price of Starbucks coffee varies not only among the sizes and different drinks but also within the State, the countries. The average price of a Starbucks tall cappuccino in the U.S. is $2.75, but New York City is the most expensive location peaking at $3.25. However, the price can be double in some countries in Europe. For instant, in Berlin and Zurich, it can cost $6 for the same cappuccino, according to the data from Spruce Eats (Goodwin, 2019). It has been found that "a Starbucks coffee in London is almost half (48%) the price of the same beverage in Bern, Switzerland, who tops the list for the most expensive drinks from the chain worldwide." (Ealing Times, 2017). They also apply psychological pricing strategy by pricing products 0.95 cents instead of 0.99 cents. 0.99 cent is a very common tactic in price marketing. It is proven that .99-ending prices result in higher sales and has been used in many marketing campaign of retailers. However, 0.99 ending prices has been a psychological signal of low price, on sale item. Therefore, Starbuck use 0.95 cent ending prices to signal the high quality associated with brand equity. With 4 cents difference, promotions can still make it harder for the customer to budget, increase the sale, encourage the purchase and emphasize the high-quality brand. In addition, the way the menu is designed to make customer feel better about buying more. By restructuring the size and price accordingly, sales increased. In the mid-1990s, Starbucks offered three drink options: Short, Tall, and Grande. Most people avoided the extremes Short (8 oz) and Grande (16 oz) and instead ordered Tall (12 oz) drinks. But when Starbucks dropped the Short size from the menu and added the Venti size, the Grande became the middle and most frequently selected option (Hendricks, 2018). With size names like tall (12 oz), grande (16 oz), and venti (20-24 oz), it can be hard to tell what actual size of the order and how much actually getting from a drink. Just a little twist, Starbucks can generate more profit with higher price sale of grande size. Furthermore, the price of smaller cups is set in a manner that encourages preference for taller cups. Starbucks do not increase the prices of products with the highest margins. Management just raised the price of a smallest size in order to convince customers to buy a larger coffee size with slightly higher margins. For instant, it cost 4.95 for a Tall size Frappuccino, $5.25 to get Grande size and 5.75 to get the Venti. So, the customer can make the compromise effect and feel powerful and pleasure to make decision when purchasing the venti size that only costs 50 cent more to have the biggest size on the menu. The new common preference becomes the 20/24-ounce Venti cup. The menu and price also vary by region or location. The menu of a Starbucks caf in grocery store might be different from the one in the airport. The one from New York city might be different from California and price is varied as well to cater to specific local customers. The packaged products are also available at grocery stores which are comparatively cheaper than the normal outlet products and easily available to everyone. This proves that Starbucks not only follows competitive pricing in its marketing mix but also relative pricing strategies.