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Starbuck’s Case Study Notes

Why has Starbucks’ customer satisfaction scores declined?
Starbucks customer satisfaction scores began to decline despite the fact of Starbucks’ overwhelming presence and convenience. There was very little image or product differentiation between Starbucks and the smaller coffee chains. However, there was a significant differentiation between Starbucks and the independent specialty coffeehouses. The brand image of Starbucks also had some rough edges. More customers were beginning to agree with the fact the Starbucks cared primarily about making money and building more stores. Also, despite the high customer snapshot scores customer satisfaction scores were declining. It was believed that there was a service gap between Starbucks scores on key attributes and customer satisfaction. In polls by customers “improvements to service,” particularly speed of service, was most mentioned for improvement.

Has the company’s service declined or is it simply measuring satisfaction the wrong way?
The overall company service has not necessarily declined. Overall, customers are pleased with the cleanliness, atmosphere, and product quality. However, wait time is steadily increasing. This is the main problem. While some people go to Starbucks for the experience, many people get their coffee and are out the door. Therefore, wait time is exceedingly important. This is where the satisfaction has begun to decline. While wait time is a part of customer satisfaction it is not the only thing that determines customer satisfaction. The satisfaction level of customers also varies with the type of customer. Customers that visit more often, spend more often, and are more loyal tend to be more highly satisfied. Also, Starbucks is measuring much on how people view the company, as trying to expand and make more money, rather than how people view the coffee. Generally customers are satisfied with the coffee. While customer service has declined some, the main

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