How does Starbucks' pricing strategy compare to other coffee chai

Starbucks' pricing strategy is different from other coffee chains like Dunkin. Instead of trying to compete on price, Starbucks positions itself as a premium brand. It uses price hikes to distinguish its brand from others and reinforce the perception of it being a premium coffee chain. Starbucks' most loyal customers are not price sensitive, so even a slight increase in price does not affect the demand but has a positive impact on the company's margins.

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Instead of trying to compete with more affordable chains, such as Dunkin, Starbucks uses price hikes to distinct its brand from others and reinforce the premium perception of it. Considering Starbucks' most loyal customers are not price sensitive, Starbucks coffee drinks remain in demand and a slight increase in price actually has a huge positive impact on the company's margins without affecting the demand.

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Pricing Strategies

Take the most advantageous pricing approach to increase profitability of your organization. Use our Pricing Strategies presentation to outline factors...

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