A regular cup of coffee at Starbucks costs around $2, and a "fancy" cup of coffee costs over $4.
Why paying this price?
Starbucks differs from other coffee companies because it offers value to its costumers. Starbucks sells not just coffee, but also image, status and satisfaction. I think this is the case of a prestige pricing, which means charging a high price to help promote a high quality product.
Starbucks often talks about serving coffee ethically traded, paying farmers high prices for the coffee beans, reducing the environmental footprint and supporting the communities where they do business. They give information to the public related to their ways of doing business. They make costumers realize the company's involvement in society.
In addition, the company focuses on "Starbucks Experience", by offering professional service and friendly atmosphere to its costumers. The company has a variety of 87, 000 types of beverages, and it sells coffee beans from 4 continents.
In conclusion, Starbucks means image, value, variety and premium coffee. That's the reason why their prices are high and the costumers pay them.
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