Behavior Understanding consumer behavior

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To further enhance customer engagement and potentially generate higher revenues, Starbucks frequently introduces limited-edition or seasonal products. This strategic move bolsters customer enthusiasm and allows the company to justify premium pricing. By instilling a sense of urgency and exclusivity surrounding these products, Starbucks successfully stimulates greater demand and realizes improved profit margins. For example, during the holiday season, Starbucks introduces seasonal beverages like the Pumpkin Spice Latte, which have a loyal following and are eagerly awaited by customers.


These limited-time offerings often come at a slightly higher price, allowin crypto email list g Starbucks to increase its profitability. While Starbucks aims to maintain premium pricing, it also recognizes the need to cater to a broader audience. To appeal to price-sensitive customers, the company has introduced alternative pricing options. For instance, Starbucks offers a range of beverage sizes, allowing customers to choose based on their budget and desired portion. It also provides cheaper alternatives like iced and regular coffee, priced more competitively than its specialty beverages.


In addition to its product pricing, Starbucks also employs various pricing strategies to encourage customer loyalty and increase sales. One such strategy is its loyalty program. Customers can join the program for free and accumulate stars for each purchase. These stars can be redeemed for free drinks or food items, encouraging customers to visit repeatedly and spend more at Starbucks. The rewards program helps retain existing customers and attracts new ones, making it a valuable tool for driving sales.