Bachelor of Arts (Hons)

Business Administration
(In collaboration with UCSI University)

Assignment Cover Sheet

No Student’s Name Student’s ID

01 PHẠM TRUNG TÍN 1002060895

02 NGUYỄN NGỌC TRÀ MY 1002060887

03 NGUYỄN TẤN VỸ 1002060923

04 PHẠM THÀNH ĐẠT 1002060872

05 MAI KỲ ANH 1002060871

Module/Subject Information

Subject Code BBM2O43

Subject CONSUMER BEHAVIOR

Name
Lecturer/Tuto MA. Ninh Đức Cúc Nhật
r
Submission 3/04/2022
Date
Assignment CONSUMER BEHAVIOR ASSIGNMENT – THE
Title/Topic STARBUCKS CASE STUDY
Word Count 4986

Lecturer’s Grade/Marks/Notes
Signature
Contents
CASE SUMMARY ................................................................................................................ 3
QUESTION 1 ........................................................................................................................ 4
1. Need recognition ......................................................................................................... 5
2. Types of Decision ........................................................................................................ 8
3. Pre-purchase search .................................................................................................... 8
4. Evaluation of Purchase Alternatives........................................................................... 10
5. Summary .................................................................................................................. 11
QUESTION 2 ...................................................................................................................... 12
QUESTION 3 ...................................................................................................................... 15
QUESTION 4 ...................................................................................................................... 20
Identify needs: ................................................................................................................. 20
Product features:.............................................................................................................. 20
Supplier sourcing: ............................................................................................................ 21
Negotiation: ..................................................................................................................... 21
Purchase method:............................................................................................................. 22
REFERENCES .................................................................................................................... 23
CASE SUMMARY

At its very first stages, Starbucks was known as "Gormley”. It was founded by Mr.
Schultz, who was a coffee enthusiast and had prior experience running a coffee shop
in Italy. The initial step was to make coffee available to Americans while saving time
on coffee preparation. After purchasing the original importing company, Mr. Schultz
rebranded his café Starbucks. Within 15 years, Starbucks has grown to over 1200
retail shops. The company's phenomenal growth can be attributed to several important
marketing concepts, including the product itself, locations, employees, sourcing, and
effective marketing communications. All of that work together to help the company
thrive in a crowded market. Traditionally, the purchase price was the most important
decision variable. Starbucks needed to persuade its prospective acquirer of its product
differentiation. Starbucks discovered that the problem was the expenditure of time
when brewing coffee. Starbucks saves time on coffee preparation and relieves
customers. Starbucks provides information on their product and its ingredients, as well
as its coffee specialties and freshness.
QUESTION 1

To understand how Starbucks takes advantage of the consumer purchase decision

making process, it is critical to have a glance on the Consumer Decision-Making
Model. The model describes how consumers’ purchase decisions were made as well
as show what is involved in that process. According to Schiffman and Wisenblit
(2018), the Consumer Decision-Making Model has three components which are Input,
Process, and Output. As shown in Picture 1, The input component includes external
influences such as The marketing mix, sociocultural influences, and Communications.
Schiffman and Wisenblit (2018) also proposed that the marketing mix and
sociocultural influences are factors that mainly impact on consumers' purchase and
how they use what they buy. In this case, Input refers to what Starbucks does,
attempting to persuade consumers to buy their products. The process component, on
the other hand, explains how consumers make decisions, which has four main stages,
namely, Need recognition, Types of decision, Pre-Purchase Information Search, and
Evaluation of Purchase Alternatives. Besides, there are also involvements of
psychological factors such as motivation, personality traits, perception, and attitudes.
Having a brief view on what Starbuck can involve in the decision process and how the
process looks like, next, we will access each stage of the decision process to see what
Starbucks did.
 Picture 1. Consumer Decision-Making Model (Schiffman & Wisenblit, 2018)

1. Need recognition

The ability to recognize a need, also known as need recognition, is critical in the
consumer purchasing decision-making process, since if there is no need, there will be
no purchase. A customer's first step into a Starbucks store is to recognize the need for
coffee. Human needs are states of deprivation that can be induced by internal or
external triggers (Kotler, 2022). While internal stimuli include personal experiences
that the consumer has, such as hunger, thirst, and so forth; external stimuli refer to
outside influences (Boundless Marketing, n.d.). Before Starbucks, consumers’ needs
when it comes to coffee was only triggered by thirst and fatigue or sleepiness, which
is an internal stimuli. Starbucks creates external stimuli by launching advertisements.
As shown in picture 2, using the images of people dying in the desert as a metaphor
for the thirst and tiredness, the advertisements stated that Starbucks coffees can solve
these problems.

Moreover, Starbucks offers to satisfy more than just one basic need. As mentioned in
the fifth paragraph of the case, Starbucks is also a place where people can gather to
socialize. Indeed, in Starbucks’ documentary footage on their first 50 years, Starbucks
said that they first found the need to gather and socialize at Cafes in Italian, then they
decided to bring that culture to America (Starbucks [Starbucks Coffee], 2021). In that
video, they described the atmosphere that Starbucks creates as ‘joyful’, ‘warmth’, and
‘connected’. These things that Starbucks creates belong to a higher level of needs ,
which is ‘love and belonging needs’ or ‘social needs’ (Hopper, 2020).

In the backdrop of 1990 America, Americans were on the verge of losing the social
contract that was so common in Europe. Coffeehouses eventually became an
important part of the American social scene because they met the desire for a secure
resting place, a sacred public address where individuals could leave their worries
behind and relax and chat. Starbucks discovered that Americans lost a feeling of
community which just a few individuals at Time noted. They adapted by expanding
their businesses, adding additional tables, and offering jazz rentals. Consumers come
on weekends, create rooms and make themselves at home, they understand the
demands of this culture.

Starbucks' "Meet me at Starbucks" campaign is a series of commercial films with a

continuous theme emphasizing the benefits of face-to-face meeting, gathering, and
reunion; and proposing that Starbucks is the ideal location to do it. Starbucks also
encourages followers to upload images portraying how they met, with participants
encouraged to use the hashtag #HowWeMet on Instagram (Joseph, 2014).

.
Picture 2. Starbucks 90’s commercial video (Source: chris duguay on Youtube)

Picture 3. Footages in “Meet me at Starbucks” commercial (source: Starbucks

Coffee on Youtube)
 2. Types of Decision

When it comes to purchasing decisions, the same volume of information, cognitive

processing, and input from reference groups and other sources is not always required.
Schiffman and Wisenblit (2018) proposed three different types of decisions, in which
‘routinized response behavior’ is closest with the traditional decision-making pattern
when buying coffees. Because the items involved, in this case coffee, are affordable
and purchased regularly, the purchasing choice was automatically done without much
deliberation. Purchasing coffee before Starbucks was likewise regarded as a low-
involvement purchase, one that is not very essential, has little importance, poses little
risk, and is a routine response behavior. Indeed, prior to the establishment of
Starbucks, coffee in America was simply coffee, a cup of joe, served in a porcelain
mug or a spongy foam cup in the standard sizes of small, medium, and large (Simon,
2017). As mentioned in the fourth and fifth paragraphs of case study, traditionally,
when buying coffee, consumers only care about the price.

When Starbucks arrives, they decide to make a change. The corporation was
attempting to persuade price-conscious customers to change their old buying patterns.
Starbucks plans to do this through making their coffees different from others. In other
words, persuading potential purchasers of the uniqueness of their products. As
mentioned before, coffee in America before Starbucks was extremely simple with few
varieties to choose from. Starbucks changed that by introducing many new types of
Coffee with Italian names such as Caffe Latte, Caffe Macchiato, and Mocha. This
allows consumers to involve more in the buying process to choose the best type of
coffee for them.

3. Pre-purchase search

When a customer senses a need that may be met by purchasing and consuming a
product, pre-purchase research begins. It's important to note that a consumer who
wants to learn more may or may not do so. When a customer's need is high and a
satisfying product is nearby, he or she is more likely to buy it right away. If this wasn't
the case, the consumer may recall the need or do a problem-solving search.
Consumers can seek information from a variety of sources, including personal
sources, commercial sources, public sources, and experiential sources. The
commercial sources of information are the ones that Starbucks' marketing has most
control on (Kotler, 2022). As shown in Picture 4, Starbucks advertises the quality of
their goods in addition to the advertisements stated in the 'need recognition' step.
Moreover, today, Starbucks uses their websites as a means of information display.
They also encourage consumers to have more experience, which enriches Starbucks’
information in their experiential sources. The coffee brand provides in-store
promotion by eyes catching advertisement of popular or new products (drinks or food)
or having programs such as "one free coffee day" / "happy hours" to promote their
coffee.

The consumer's awareness and understanding of the brand and features grows as more
information is received. With more awareness, Starbucks has considerable advantages
when consumers compare between brands, which we will discuss in the next part.

Picture 4. Starbucks’ commercial about how the coffees were made (Source:
TheAdBuzz on YouTube)
 Picture 5. Menu display on Starbucks’ website (Source: Starbucks.com/menu)

4. Evaluation of Purchase Alternatives

Consumers process information to pick between different brands during this step of
the purchase decision process. In theory, customers divide brands into three
categories: evoked, inept, and inert (Schiffman & Wisenblit, 2018). In order to have a
chance of being the consumer's first choice, Starbucks strives to be in the evoked set,
which refers to the particular brands that a customer considers when making a
purchase within a given product category.

Starbucks achieved that partly due to the nonchalance of major competitors. As

mentioned in the end of the third paragraph of the case, in these days Starbucks, hold
an enormous advantage and easily dominate the market because other coffee retailers
were incompetent. Hence, these other coffee retailers can be categorized as an inert
set, from which consumers cannot perceive any particular advantages.

Nonetheless, Starbucks was still carrying out a dedicated marketing strategy to get
better evaluation from consumers. Arriving at one of Starbucks' coffee shops,
customers will quickly notice the unique atmosphere that the store has to offer.
Customers will feel at ease in the place they create and will want to return. Most of the
time, Starbucks comes out on top when it comes to alternative evaluation due to their
distinct "experience." Starbucks' employees can form emotional ties with one another.
When consumers visit Starbucks, these people aim to make them feel welcome.
Starbucks is regarded as a very respected brand for a reason.

5. Summary

In short, Starbucks is well prepared to engage in every step of consumers’ purchase

decision making process. First, in the need recognition step, they launch
advertisements offering to solve consumers' thirst and fatigue. They also stimulate the
need to socialize and gather in the way they design the store and by commercial
footage. Second, they change the way Americans make decisions when buying coffee
by introducing bunches of new drinks with different ways to enjoy coffee. Thirdly,
Starbucks provides information which facilitates consumers' pre-purchase information
search. They did that by disclosing their whole coffee making process and displaying
their menu as well as other information on their websites. Fourth, in the final step of
deciding, although there was not much competition at that time, Starbucks still wanted
to assure their coffees had the most favorable evaluation from consumers. Besides
making their products the best on the market, they also have passionate and sociable
employees which make consumers feel at home every time they walk in.
QUESTION 2

Customers' attitudes and psychology regarding products, services, marketing, the

internet, and retail outlets, among other things, must be thoroughly understood in
order to attract customers. The majority of the time, attitudes lead to actions. Attitudes
can sometimes represent a positive or negative appraisal on the object of the attitude.
Consumers' attitudes may either encourage or discourage them from engaging in
certain behaviors.

Starbucks is known as a famous brand. Starbucks attracts customers by its space, good
service staff and many Starbucks products for you to choose from. The design of
Starbucks logo and products in a luxurious, simple, youthful style with many choices
has attracted many customers with its beauty and uniqueness.

To attract customers Starbucks has succeeded in:

● Learning Attitudes
More information consumers have about a product or service, the more likely
they are to form attitudes about it, either positive or negative. Starbucks started
with learning the attitudes of customers. Understand customer psychology, give
detailed advice on products to customers. Always deliver a good customer
experience. Always absorb the opinions of customers to improve
understanding, understand customer psychology and customer desires. Not
only that, but Starbuck also has a service for loyal customers to make points
cards and every customer's birthday, Starbuck sends greetings and sends a gift
certificate, coupon. This gives consumers a feeling of being cared for and
motivates potential customers to want to become a loyal Starbucks customer.

● Personal source and experience.

Attitudes are influenced by personal experiences, family and friends, the
media, and social media. Consumers' firsthand experiences in testing and
assessing items are a significant source of attitudes regarding them. Consumers
who test new items develop positive sentiments toward them and buy them
again.
Starbucks’ products are designed in a luxurious, youthful, and environmentally
friendly style by using paper cups and paper straws. In particular, the process
of making a Starbucks product is very hygienic and safe, and Starbucks allows
customers to make their own mixes according to their wishes. Starbucks always
puts customer experience first and brings a good attitude to consumers. This
drives consumer shopping behavior and brings potential customers.
● Personality factors

Personality traits significantly influence the formation of attitudes. Individuals

with a high need for cognition are likely to form positive attitudes in response
to promotions or a store space that includes a lot of detailed, product-related
information or a feeling of comfort. A person’s level of innovativeness and
related personality traits deeply impacts attitudes.

Starbucks has a space that will make customers have a comfortable and quiet
space with luxurious store designs, especially in stores with beautiful locations,
near intersections and crowded places. This will form a positive attitude for
customers when they want to experience the product in a comfortable space.
Normally, business partners will choose Starbucks as the place to discuss work
because in front of the work desk they need a positive attitude and enjoying the
product with a comfortable feeling will make a good influence on the partner.
This makes it easier for them to do their business.

Besides, Starbucks culture is special because it is attached to the company's

business strategy. Feeling comfortable when entering a Starbucks store depends
not only on the interior design, but also on how the sales staff understand their
importance and understand how to provide a good experience for customers.
The company's employees are always fully absorbed with knowledge and
skills, from Starbucks products to service rules, especially how to greet
customers and create a special Starbucks environment. Starbucks prides itself
on investing in employee and service training to create customer friendliness
and make customers form positive attitudes and at the same time promote easy
shopping behavior. Moreover, helping potential customers have a good
impression when they first intend to buy the product.

● Situation factors

The area with the most lights at a Starbucks store is the checkout and order
counter. According to many psychological surveys, light makes people think
more positively, "impulsive spending" is also unavoidable. Thus, Starbucks has
been successful in two things: Leading customers to where they need to go and
making their customers spend more money than they originally planned.

At Starbucks stores, the price of each drink or dish ends with a 0 or 5.

According to human psychology research, our brains always automatically
round to hide imperfections. perfect. Therefore, customers do not notice price
increases if they are not rounded.
To attract its prospective buyer what were the unique features in its offerings:

Potential buyers are not actually buyers, but they can become actual buyers by
promoting them and convincing them about the product. Therefore, potential buyers
are very important to attract the growth of a company. Starbucks needs to convince
potential buyers of the difference in its offerings with consistency behavior towards
customers.

To turn potential customers into buyers. Starbucks has attracted customers with its
unique coffee processing and services. At Starbucks, there is a service that allows
customers to make their own drinks according to their own recipe. This attracts
customers when they can enjoy their favorite flavors. Besides, along with the positive
attitude of customers, it is easy to influence and motivate potential customers when
they do not worry about the drink not to their taste.

For example, a regular Starbucks coffee Macchiato latte has less coffee than
condensed milk or fresh milk. But customers can ask staff at the store to add more
coffee. To create your favorite flavor in the product experience. Not only that, but
potential customers will also have a more positive attitude when they know that
everyone around them has a good product experience without worrying about whether
the product is right for them or not. This has attracted potential customers easily.
Since then, Starbucks has created a consistent behavior for potential customers.
Potential customers will think that it is better to drink a cup of coffee from Starbucks
with their favorite taste than to drink a cup of coffee from another brand without
knowing if it suits their taste or not. This is a step in creating a thriving Starbucks
brand.
QUESTION 3

Today, Starbucks is one of the largest coffee retailers in the world. Starbucks has a
presence in more than 30 countries around the world and over 10,000 coffee shops in
these regions. Becoming the most famous coffee brand is Starbucks' main goal. To
achieve long-term growth success, Starbucks is using an effective marketing strategy.
Nowadays, the company is relying on retail expansion along with continuous product
innovation and updated trends, services to continue to grow and succeed in the
industry. Starbucks has opened many new stores in both existing and new markets
over the years (Wei 2016). Starbucks' basic strategy is to position itself in the industry
as a premium coffee shop through building high standards, providing quality service,
and introducing innovative products. Starbucks is looking for a different strategy by
seeking to offer products and services that are different and unique from competitors
and deliver benefits that are valued by customers.

Starbucks' marketing techniques are a hybrid of mass and segment marketing; they are
aimed at a broad audience; nevertheless, they quickly saw industry development
prospects and developed methods to appeal to a greater market sector. By paying
attention to its target segments, Starbucks increases its market share in the business. It
not only utilizes demographic segmentation based on gender, income, age, and
ethnicity, but it also uses geographic segmentation based on nation or area.

Market segmentation, according to Armstrong and Kotler (2006), is the process of

dividing the total market into discrete buyer groups with different traits, needs, or
behaviors that necessitate marketing programs or separate goods.
Demographic segment:

Age Characteristics

18 to 24 years Starbucks sales are made up of 40% of those aged 18 to 24.

- Starbucks is marketed to college students as a location

where they may study, take notes, speak with friends, and meet
new people.

- Starbucks employs technology to directly engage this

population, concentrates on social media, and intentionally
promotes a youthful and vibrant image.

→ Young audience growth 4.6 percent per year.

25 and 40 years They contribute for nearly half of their overall revenue (49
percent).

- Starbucks draws to this age group of customers with its

space design and constant modern style in its advertising and
decor.

- Customers are often persons with a high income, a

professional career, and a strong commitment to social welfare.

→ This is where the most profit is made as claimed by Fromm

(2014).

Children and Children and adolescents are also a large part of Starbucks'
adolescents customer base. Most children's items are purchased by parents.

→ Customers ages 13 to 17 make up just 2% of Starbucks' sale

Starbucks is a multinational company with a network of outlets. Starbucks'

geographical categories are as follows: Americas; China and Asia Pacific (or CAP);
Europe, the Middle East, and Africa (or EMEA) (or EMEA).
Starbucks is concentrating its efforts in China, where it has over 1,400 locations. In
China, the business expects to rapidly grow its mobile ecosystem and consumer
loyalty. In Japan, there are roughly 1,000 stores in this category. In Japan, the
corporation stated that it will continue to improve its digital approach. Outside of the
United States, Starbucks' major operating regions are China, Canada, Japan, and South
Korea.

• During the Mid-Autumn Festival, Starbucks serves green tea-flavored

beverages and mooncakes. Furthermore, the current best-selling item at
Starbucks stores in China is a drink called Strawberry Cheesecake
Frappuccino, which contains cream cheese, crumbs, and even strawberry syrup
that has been processed to suit local tastes.
• For the Vietnamese market, Starbucks has purchased Arabica coffee because
Vietnamese people are very familiar with this flavor. Starbucks has adapted to
a market where people here are not used to coffee as fast food or takeaway, but
rather a flavor to sip with the characteristic "bold, thick, bitter" taste of coffee.
Completely different from the model that Starbucks focuses on in Western
regions.
• In Spain, Starbucks is known for its high-quality items and great service. Given
the strong traditions surrounding the coffee market in Bilbao and Basque
customs, Starbucks has adapted to local tastes by selling a number of
traditional goods, mostly in the food area. A coffee Cortado, for example, is a
Spanish term. With a Cortado drink, the amount of extracted espresso is cut so
that the proportion of milk added is equal to the ratio of hot milk. Originating
from Spain, the Spaniards also do not heat milk to create foam. The milk is
only heated gently enough to reduce the acidity of the espresso, smooth but not
as fluffy and frothy as a latte or cappuccino.

Positioning:

As noted by Blankson and Kalafatis (2007) in the Journal of Services Marketing,

positioning has gotten little attention from marketers despite its importance in defining
and influencing the tangible attributes of a product as well as its intangible
perceptions.

Customers buy pricey, high-quality items at Starbucks, but they also get a customized
in-store experience from highly educated employees; for example, the customer's
name is printed on the plastic cup in which their drink will be given; this helps
Starbucks attain premium brand status and compete.

Starbucks uses unique selling propositions to differentiate its products and services
from the competition and obtain a competitive advantage. Starbucks is noted for its
excellent customer service and in-store experience, allowing consumers to spend time
in the shop and take advantage of the warm and inviting atmosphere as well as free
Wi-Fi, or they may quickly get a drink and be back on the road.

Product Positioning:

Product is defined by Kotler as “anything that can be offered to a market for attention,
acquisition, use or consumption that might satisfy a want or need. It includes physical
objects, services, persons, places, organizations, and ideas” (2005, p.539)

Starbucks stated: “In the past and in the future, we have been and will be focused on
quality. We are passionate about sourcing the finest coffee beans ethically, roasting
them carefully and improving the lives of coffee growers. We care deeply about all
these activities; our work never ends.” Products are the core value of Starbucks. As a
result, the firm devotes a significant amount of time and effort to the research phase in
order to identify the most fragrant - tasty - standard coffee beans. Starbucks always
introduces new menu items, debuts limited-edition goods, and other strategies to
create scarcity and attract and keep consumers throughout each unique period.
Starbucks has enhanced the designs and formulations of its goods over time, resulting
in items that are distinct and carry the brand's character. Currently, coffee, tea, cakes,
Frappuccino drinks, smoothies, and goods (cups, thermos, souvenirs, instant coffee,
etc.) are the main products of Starbucks.

Brand Positioning:

"People don't buy products; they buy brands," says one expert. (Marketing Handouts,
M. Willan, 2010). The "Starbucks Experience" is the most important factor in their
success. "At Starbucks, our product is not just great coffee; it is also what we call the
"Starbucks experience" (Michelli, J.A., 2007): an inviting, enriching environment in
our stores that is comfortable and accessible, yet stylish and elegant," says Howard
Schultz (Schultz and Yang, 1997,p.251). Coming to Starbucks means not only getting
amazing items and coffee, but also getting the "Starbucks Experience," which is a
wide, open area in the shop that is simultaneously cozy, intimate, fashionable, and
smart.

Customers think of Starbucks not just because of its amazing coffee, but also because
of the three words "third place." That is the most important aspect. Competitors can
catch up to Starbucks in terms of quality over time, but they will never be able to take
away the three words "third place," which Starbucks currently controls.
Starbucks founder Howard Schultz and his approximately 24,000 global employees
see the company as their baby and "devour their hearts" for its customers. Even
though the price of coffee beans climbed by about 200 percent in 1994, Starbucks
remained adamant about not raising the price, and the quality of Starbucks coffee has
always been the greatest cup of coffee conceivable since the company's inception.
"What comes from the heart will come to the heart," Starbucks based its brand on. The
Starbucks brand not only sells coffee, but it also "sells" enthusiasm to customers.
QUESTION 4

The purchasing process is often divided into stages, but new trends gradually change
the way it is applied from time to time, which can be seen through the Starbucks
group through the following processes:

Identify needs:

The needs targeted by Starbucks are individuals with a taste for coffee, especially
ready-to-drink coffees to meet the convenience of customers nowadays. Customers
also tend to drink coffee at the counter or take away, along with a variety of different
types of coffee to be able to satisfy each person's taste, at the same time affordable and
especially convenient for nowadays buying process.

In order to be able to compare the importance of needs through Maslow's pyramid,

going to a cafe is said to be one of the groups of self-actualization needs of
individuals. Self-actualization is described by Maslow as "the intrinsic growth of what
an organism is.", this inadvertently proves that the influence on the demand of the new
trend is very high and leads to fierce competition with the market.

Product features:

Like other cafes, Starbucks focuses on the convenience and quality of drinks for
customers, which means removing some unnecessary designs on ordinary plastic cups,
but there always includes a Starbucks logo printed directly on the cups so that they
can be easily distinguished from other brands.

In addition, Starbucks also produces a variety of unique by-products for coffee

connoisseurs such as packaged coffee and souvenirs, the designs of which bring a lot
of personality to each item, but mainly Classic and elegant design exudes the look of
Starbucks brand.
Along with the above items, Starbucks also launched many sizes and unique design
shapes to celebrate special holidays of the year, one of the goal is to be able to keep up
with trends and attract a wide range of customers, especially customers with special
needs, at the same time can build an image and help customers remember the business
through the designs.

Supplier sourcing:

Brand experience can be considered as a factor in customer experience because all

consumers see a company through their personal brand experiences, however, there
seems to be an impact There is a two-way between these two concepts (Schmitt),
whereby, coffee shop businesses can create value and attract customers' attention
through serving and providing drinks for the diners' experience. This made many
customers can choose and stay loyal to the types of businesses that meet their own
taste.
Starbucks is known by many customers as one of the most popular coffee names, with
more than 23,000 shops in 64 different countries helping to reach more customers,
Starbucks also creates its own path when it is known to customers for its diverse and
their bold drinks, along with that, their professionalism and creativity has attracted
many customers to be voted as a coffee business worth mentioning (Vanharanta et al.,
2015).

Negotiation:

To be able to compete with today's market, Starbucks often responds to many

programs of participation in community programs, the most prominent of which is the
commitment to the environmental campaign, whose main purpose is to contribute to
building the community, especially as more and more customers nowadays make
reviews based on business backgrounds.

Starbucks now also appear on online shopping stores; this also responds to the
evolution of the age of preferences of many of today's customer. This means that
businesses seize opportunities and develop plans very well, especially when they can
bring attention when they can cooperate with many stakeholders and customers. In
addition, Starbuck also encourages customers to buy through discounts when buying
in bulk or on special occasions. This helps reduce product costs and stimulate
customers to buy in large quantity, in which the majority of young people also
positively evaluate and respond to these offers and also contributes to businesses
having a competitive advantage in price and satisfying the cost needs of customers. In
short, the change of the new trend is thoroughly applied by Starbucks to keep up with
the needs of customers, improvements in the process of supporting procurement can
shorten time and create a foothold and compete with the markets nowadays.

Purchase method:

Customers today can be divided into 2 groups: on-site and online transactions. As for
the on-site payment method, it is a familiar method and is still applied today, most of
them are visitors or come to enjoy coffee on the spot, thereby creating an opportunity
for Starbuck to make an impression on customers through its services.

Online transactions are becoming more and more popular today, unlike on-site
transactions, this allows customers to place orders anywhere to reduce travel time. In
addition, these forms also allow customers to choose to pay directly or through a third
party, especially for food, drinks, and daily necessities, including Starbuck. According
to research, 58 percent of respondents decided to buy online because they could shop
after hours, when traditional stores are closed, and 61 percent chose to shop online to
avoid crowds and lengthy lines (Katawetawaraks & Wang, 2011).
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