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Consumer society
Impact of social media on consumer behavior
Impact of social media on consumer behavior
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We are now a consumer based society, where we rely entirely on buying alone, not the trio of production, jobs, and purchasing. The economy now revolves around Starbucks. This has cost us our jobs because the production and the job part have moved overseas, where cheap labors are easily acquired. Drinking Starbucks’ coffee is more than just about the quality and the functionality; it’s about an expression of longing, a source of entertainment, a strategy for mood management, and a form of symbolic communication about class and social standing. This gave rise to the “Starbucks Moment.” Starbucks Moment is when the company popped up everywhere from airports, malls, parking lots, street corners, and social medias, like Facebook to television shows and movies. Since buying Starbucks meant buying social status, many Americans thought that it will make their private and public lives better. This “desire” for better life allowed the corporation to slowly encroach upon our private lives. The company took over the civic institutions, due to the pullback of community, the state, and other binding agents, which allowed brands like Starbucks the chance to sell more of their “luxurious” products, garner allegiance and profits by reaching deeper into our lives. They talked and acted like NGO or a political party and by making claims that they are serving for the greater good, they made it harder for government agencies to reclaim their legitimacy as vital decision makers in domestic and foreign policies. However, in reality, they are working for the shareholders at Wall Street. Therefore, when we consume Starbucks, we are giving away parts of our environment, our culture, and even our politics, as they take over more state functions.
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...d Dub Hay, Starbucks’ head of coffee procurement confirmed it, when Simon met him in his office at the company headquarters. He said, “No, we didn’t pay anymore” (Simon, 216). Turns out, Starbucks purchased most of its Rwandan green beans from large estate holders and from middlemen who bought the coffee from individual small farmers, not as Starbucks publicly claimed that it came directly from Rwandan farmers. I share his ideal because I think Americans need to wake up from their fantasized world of “global peace,” so Starbucks cannot manipulate us. A company exists solely to make money, not for the improvement of the world. If a company does something “selfless,” then it is done for publicity and it is a fake image because of the dirty secrets involved behind the scene. Therefore, don’t let Starbucks take away our environment, our culture, and even our politics!
Starbucks and other companies have found a new way to add economic value, and what they are selling is emotion and a feeling of belonging. Companies have now stopped trying to sell just their products, they are now making you feel good about buying their product. Bill Silver uses the example of the blueberry muffin. If you buy the blueberry muffin, then you get to eat a tasty pastry. But if you don’t buy a muffin, you still feel good about yourself because you resisted urge of buying that blueberry that would have costed you money and make you not as
The company’s founder and CEO, Howard Schultz, has been successful in creating Starbucks into something that we didn’t really know we needed until we had it. He has meticulously crafted a brand for the company that adds a psychological value to its offerings. Thereby, when you buy a cup of coffee at Starbucks, you buy an experience. The somewhat quiet, not-so-rushed atmosphere along with dimmed ambience and friendly staff found at Starbucks’ stores add a feel-good factor to your purchase. As a result, people are willing to pay a premium for coffee at Starbucks even if McDonald’s were running a promotion offering free coffee. The premium prices translate to superior margins for its investors.
Although they are regarded by many as threatening to our health, destructive to our environment and corrupting our children, brands are an important part of the postindustrial commercial life.2 Many recent books have been chanting an anti-brand rhyme: Eric Schlosser’s Fast Food Nation (2001), François Dufour and José Bové’s The World is Not for Sale (2001), and most importantly, Naomi Klein’s No Logo: Taking Aim at the Brand Bullies (2000). But still, brands are everywhere: “products, people, countries and companies are all racing to turn themselves into brands — to make their image more likeable [sic] and understandable.”3 Madonna, Canada, Starbucks, Martha Stewart, The European Union, Microsoft are all selling the greatness of being alive, surrounded by their music, culture, coffee, craft, money, software, etc.
In 2002, unexpected findings of a market research showed problems regarding customer satisfaction and brand meaning for Starbucks customers. The situation was unacceptable for a company whose overall objective is to build the most recognized and respected brand in the world. Starbucks was supposed to represent a new and different place where any man would relax and enjoy quality time, alone or with others. But the market research showed that in the mind of the consumers, Starbucks brand is viewed as corporative, trying to expand endlessly and looking to make lots of money. This huge gap between customers' perception and Starbucks' values and goals called for immediate action.
Starbucks is a company in which purchases and roasts high quality whole bean coffees and sells them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, and coffee-related accessories and equipment (starbucks.com). During my environmental scan in which took place at the Starbucks on the corner of Fair and Newport across the street from vanguard, I noticed many things in which where never brought to my attention in prior stays and visits at Starbucks; such as the many social groups in which choose to have their meetings at Starbucks. Thus in this essay we will discuss things in which many people do not really notice when going to Starbucks.
Starbucks Coffee, Tea, and Spice opened its first store in April 1971 in the Pike Place Market in Seattle, by owners who had a passion for dark-roasted coffee that was popular in Europe, but hard to find in the U.S. (Harrison et al., 2005; Venkatraman & Nelson, 2008). The company’s mission was to provide Seattle with the best access to dark-roasted coffee, and sought to educated customers about the product. As a matter of customer education and acceptance of the product, Starbucks grew and expanded into the successful domestic market it is today. Much of this success can be attributed to a focus on the total customer experience and s...
Starbucks. Seattle’s Best. Dutch Brothers. These three are only a few of the many major coffee marketers in the United States. We have turned into a nation obsessed with coffee. As each day dawns, the rising sun meets the rising aroma of brewing coffee. And it does not stop there either: though Americans do drink 65% of their coffee during the morning breakfast time, 30% is consumed away from the mealtable (Huffington Post). But how many of the 100 million Americans who help to drink the 146 million cups of coffee consumed by the United States each year (Huffington Post) actually understand where their coffee comes from? Awareness has risen in recent decades, leading to concern for the living conditions of coffee farmers and those living in third-world countries in general. In turn this has led to the creation of the Fair Trade vision, supposedly an system to ensure that coffee farmers earn a living wage and that they have access to the opportunity for a better life. This eases the conscience of the average American, who thinks, “Good. Now I don’t have to feel bad about those coffee farmers anymore. I can have my morning coffee and know that I’m doing my part to help those who have less than we do.” But does Fair Trade accomplish its goal? Does it really provide maximum benefit to the farmer? Fair Trade coffee is not as simple a concept as it may seem: some aspects benefit farmers while others hinder them. Rules for Fair Trade Coffee as they stand today require some revision in order for Fair Trade agreements to truly live up to their full potential to help famers.
Every thriving company must embrace some sort of code of ethics ground rules which will guarantee its success. In this case, Starbucks wants to promote high standards of practice; by selling the richest and aromatic coffees in the world to the ...
Visit Starbucks.com and you enter a virtual world of delight. Consumers can “sample” over 30 blends of coffee; find Starbucks coffeehouse locations, or learn about Starbucks Hear Music®, where customers can “burn personalized CDs, use listening stations to explore musical recommendations, enjoy a handcrafted Starbucks® beverage, or surf the web at (a) T-Mobile Wi-Fi enabled coffee bar” (Starbucks, 2008). Starbucks uses their website to communicate with their consumers about their company’s mission, social responsibility, business ethnic and compliance, diversity relations and press releases. Consumers can even read about the latest “rumor responses” that Starbucks wants to clarify about misinformation regarding the company. From the “click” of a button you can shop for Starbucks merchandise or check the balance on your Starbucks Card, the Starbucks website has got their customers needs in mind.
The Starbucks Corporation is built around an experience, the Starbucks experience. While the Starbucks experience is most notably associated with the way customers are treated, one could argue however, that the Starbucks experience transcends just the way customers are treated. The Starbucks experience is an all encompassing culture that revolves not just around customers but also to employees, or “partners” and suppliers. Burks (2009) notes that the company cares about the footprint it leaves, no matter where it does business; “the company is dedicated to making positive contributions to the communities where it doe...
For this organizational analysis, I decided to analyze Starbucks. I chose Starbucks because they are the leading innovators in socially impactful business activities and personally, I love Starbucks coffee! Obviously, the point of this paper is not to talk about how good their products are, but to analyze how their organization is structured and identify potential for improvement. I have never worked at a Starbucks, but I have two friends that work at the location inside of Hy-Vee in Cedar Falls. After countless hours of research, talking to my friends about day-to-day activities, and actually going to Starbucks on numerous occasions over the past few years, I knew this was the organization that I would love to analyze.
Bruss (2001) argues that the company hopes as well to make new investments in new coffee types. Starbucks has recently developed a new type of coffee called green-coffee. These strategies are created with the objective of support Starbucks’ commitment to buy coffee that has grown and processed by suppliers. They meet certain conditions of social, economic and quality standards. In addition to that, the company is paying additional premiums to those vendors who meet the specific requirements that the company wants.
The strategic vision that Howard Schultz had for Starbucks was "Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow". This s...
Starbucks is a worldwide company, known for is delicious brews of coffee and seasonal varieties of tasty drinks for any occasion. Starbucks opened with two main goals, sharing great coffee with friends and to help make the world a little better. It originated in the historic Pike Place Market of Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker. The creation of Starbucks’ name came from the seafaring tradition of early coffee traders and the romance evoked from Moby Dick. At the time, this individual shop specialized in the towering quality of coffee over competitors and other brewing services enabling its growth to becoming the largest coffee chain in Washington with numerous locations. In the early 1980s, the current CEO Schultz saw an opportunity for growth in the niche market. After a trip to Italy he brought back the idea of a café style environment of leisure and social meetings to the United States we now see in Starbucks locations today. Schultz ultimately left Starbucks to open his own coffee shop, Il Giornale which turned out to be a tremendous success. Fast forward a year later, Schultz got wind that Starbucks was going to sell all their components of Starbucks including their stores and factories, he immediately acquired the funds to buy Starbucks and linked both operations. Within five years he was able to open more than 125 stores starting in New England, Boston, Chicago, and gradually entered California. He wanted Starbucks to be a franchise system based on the mission of telling the truth and emphasize the quality,
An article in the Seattle Post, describes the alliance that Starbucks is making to ensure that a sustainable supply of high quality of coffee is produce in Latin America. "Starbucks President and CEO Orin Smith said the alliance is partly his company's effort to pass on the "high price" of a cup of coffee to farmers." (Lee, 2004). He states that the high price enables them to pay the highest price to the farmers. Though the high prices to suppliers can demonstrate that money get to farmers with being diverted. Starbucks overall goal with this alliance is to buy 60 percent of its coffee under the standards agreed upon by 2007. "The agreement reflects the growing power of the premium coffee market and efforts to exploit it for the benefit of small farmers" (Lee, 2004).