Read the case titled “Starbucks, Bank One, and Visa Launch Starbucks Card Duetto Visa” in the Resources and address the following components in your assignment: • Answer discussion questions 2 and 4 at the end of the case. 2. Build the management-research question hierarchy for this project.
Step 1: Management Dilemma
Is there a brand fit between credit card and Starbucks? How does the customer value the different benefits being offered by the Starbucks Duetto Visa card? How does the customer value “the give back to the community component”?
Step 2: Management Questions
If there is a match between the brand and the customers value the benefits of Starbucks Duetto Visa card, the card should be launched to as large an audience as possible.
Step 3: Research Questions
Starbucks should go in for the full launch of Starbucks Duetto Visa card. Starbucks should go in for a limited launch of Starbucks Duetto Visa card Starbucks should launch the Starbucks Duetto Visa card without give-back-to-the community component.
Step 4: Investigation Questions
Does Starbucks Duetto Visa card clash with the image of Starbucks? How much do the benefits of Starbucks Duetto Visa card appeal to the customers? How much do the planned give back to the community component appeals to the customers of Starbucks Duetto Visa card?
... each month for every Visa purchase made. Starbucks also donates $5 to the Starbucks Foundation, after every customer! |s first Starbucks Card Duetto Visa purchase!" (Martin, Z., 2004, ... implement the following suggestions. To improve customer satisfaction, Starbucks should include a section where customers actually ask questions and / or leave comments both in ...
Step 5: Measurement Question
What is the extent to which the perception of Starbucks is hurt by Starbucks Duetto Visa card. In dollars what is the perceived value to the customer of the benefits offered by Starbucks? In dollars what is the perceived value to the customer of the planned give back to the community component of the Starbucks Duetto Visa card. Step 6: Management Decision
The management decision is to go in for a full launch of Starbucks Duetto Visa card with benefits and give back to the community component.
4. The Duetto Card team turned to Greenfield Online to recruit a panel for one of its online surveys. How might you build a sample frame of appropriate participants for future online or phone surveys? Starbucks Duetto Visa card team should recruit a panel of Starbucks Cards users. The sample frame will be all present or past users of Starbucks Cards. The reason why this frame has been chosen is that these participants have already experienced the Starbucks Cards. It is necessary to know how additionally they will value the benefits and give back to the community component of the Starbucks Duetto Visa card.
• Describe any ethical issues that should concern Starbucks about this initiative. There are strong ethical issues relate to Starbucks Duetto Visa card. Starbucks has joined banks and credit card companies in soliciting customers without regard for the consequences of high credit card debt for these customers. Ethical conflict of the sale of easy credit to Starbucks customers can too often result in high credit card debts for these customers. The promotions that Starbucks is using represent the unethical manner in which the Starbucks Duetto Visa card is being issued to coffee drinkers to promote its products. The purpose of issuing this card is to induce the customer to spend more than what she normally would have at Starbucks. For example, several of Starbucks customers are college students who are running up large balances and paying exorbitant interest on the balances.
• Assess the use of qualitative data to support business decision making. Consider different types of qualitative data collection and analysis methods and the ways in which they can support business decision making and strategies. The focus on text—on qualitative data rather than on numbers—is the most important feature of qualitative analysis. The “text” that qualitative researchers analyze is most often transcripts of interviews or notes from participant observation sessions, but text can also refer to pictures or other images that the researcher examines. Qualitative methods include three kinds of data collection: (1) in-depth, open-ended interviews; (2) direct observation; and (3) written documents. Interviews: Open-ended questions and probes yield in-depth responses about people’s experiences, perceptions, opinions, feelings, and knowledge. Data consist of verbatim quotations with sufficient context to be interpretable.
Segmenting customers based on their lifetime value is a powerful way to target them because marketing mix activities can then aim at enhancing customer value. (Ho, 2006) Roughly translated, customer lifetime value is the projected profits that a customer will generate during their lifetime. We used the case data to segment Starbucks customers into three distinct categories of unsatisfied, ...
Observations: Fieldwork descriptions of activities, behaviors, actions, conversations, interpersonal interactions, organizational or community processes, or any other aspect of observable human experience. Data consist of field notes: rich, detailed descriptions, including the context within which the observations were made. Documents: Written materials and other documents from organizational, clinical, or program records; memoranda and correspondence; official publications and reports; personal diaries, letters, artistic works, photographs, and memorabilia; and written responses to open-ended surveys. Data consist of excerpts from documents captured in a way that records and preserves context. In the context of Starbucks Coffee, they approached credit card companies and conducted interviews with bank executives and learnt how to resolve customer credit card problems. They have also done research knowledge operation and came up with the idea of dual functionality and of such methods helped them in determining that how well customers understand their concept of behaving in the business market.