Marketing Currents - Business and Marketing Current Events

The Real Reason Starbucks Is Pushing Pricier Drinks On Customers

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If it feels like you’ve seen the Starbucks Iced Brown Sugar Oat Milk Shaken Espresso drink everywhere lately, even though it came out months ago, it isn’t without reason. It turns out the coffee chain is trying to push its newer, fancier iced drinks onto customers in order to make up for higher supply costs, according to The Wall Street Journal.

Click here to read the story at mashed.com.

Discussion Questions:

  1. What is pricing?
  2. Why do you think pricing is such an important function of marketing?
  3. What factors might influence price?
  4. What is profit margin?
  5. How does price impact profit margins?
  6. What else impacts profit margins?
  7. Based on information from this story, why is Starbucks pushing more expensive drinks?
Chris Lindauer
After working for nearly a decade in professional sports, Chris Lindauer, formed Sports Career Consulting to provide unique sports business education opportunities in and out of the classroom. In the eighteen years (and counting) that followed, Chris has inspired thousands of students to pursue their passions and explore the career of their dreams. He currently lives in Portland, Oregon with his wife, two teenage daughters and their dog.

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