Starbucks - Explain Four Determinants of Demand for Coffee

Published: 2021-06-29 07:06:32
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1. Explain four (4) determinants of demand for coffee?

 Taste: Taste is one of the most important determinants of demand for coffee because customers always put priority on their taste whether to drink coffee, tea or other drinks. Now a day's coffee shop sells varieties type of flavored coffee drinks which drives customers to determine to drink coffee rather than other choices. Subject to the taste coffee became one of the best choice for drinker to drink coffee than other drinks.

 Income: As a determinant of demand for coffee customers income has an important role to play in the matter of price, if the price of coffee is high then the low income customers will switch their choice to the other substitutes which is comparatively lower than coffee price. So ultimately income becomes a fact for consumers to determine whether come to the coffee shop to drink coffee or go for the other substitutes by the way we can see the effect of determination of coffee to its customers.

 Location: We have studied about all coffee shops location and we noticed that all coffee shops have very good strategic location which attracts customers to sit in the coffee shop. Actually location is one of the most important determinations for the customers to make choice. If there is a attractive and convenient location then customers will prefer no to look for second choice and that's how it affects to the coffee.

 Advertising: We considered that advertising plays an important role in the determination of demand for coffee. Advertising is an important tool by in which way customers get to know more about coffee and its drives customers to be known about coffee and bring into their attention to drink coffee as well as in where people get to introduced or to get to know about an product sold commonly through an advertisement which eventually thrive the customers interest towards coffee and also changes the demand of the coffee.

2. Name three (3) direct competitors of Starbucks in its lower price range coffee products. Justify your answer.

Old town White Coffee is one of the local competitors for starbucks coffee. Old town white coffee has a lower price of range than starbucks coffee which basically sells the coffee at the cheaper price and it has various kinds of sets referring to the menus as the options are high to be ordered so there for the price of the coffee being lower is not a matter because there are many other choices to be considered with.

San Francisco Coffee has its variety of coffee and other drinks with sets of cakes which price comparatively lower than starbucks coffee. In the competitive market San Francisco coffee having a strategic menu price which beat the market with other competitors. San Francisco giving a very reasonable price for its some menu just to compete with well known competitors and maintain their market share.

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