Wednesday, February 18, 2009

We're putting our money where our mouth is.


A short, but telling post.  At every branding conference during the last 10 years, Starbucks has been used as an example of die-hard brand loyalty.  The hypothetical question asked was:  "If the economy ever turned upside down, what item would you least give up?"  "A cup of Starbucks" was always the answer.  People felt that at $2.50 or so a cup, it would still give us a taste of luxury in tough times.

Well, guess what.  Starbucks has closed and will close hundreds of stores, its stock has been grinded down, and the famed "experience" is now realized while grocery shopping or pulling up in the "Drive Thru."  

The lesson?  Real fans put their money where their mouths are.  The rest of us are quick to find less costly alternatives that still satisfy the basic needs.  Now that's something to think about.

3 comments:

Mosquitoman said...

If consumers weren't insulated from medical expenses by third party payers, the same would be true in their healthcare choices, too.

Susan Strategic said...

Unfortunately, expense is not the determining factor in hospital choice. The cost to the patient is the same regardless of facility (except for those with the 'in network/out of network' factor). If it were, the "Starbucks phenomenon" would prevail. The question is: "What is the determining factor?"

Anonymous said...

I can relate to keeping Starbucks as a luxury and a comfort in tough economic times. That Nonfat Mocha with Whipped or Orange Mango Banana Vivanno is equivalent to my childhood security blanket in this economy, and I haven't abandoned it. The same quality and experience are there, but not the market to support it right now. As far as luxuries go, SB is relatively inexpensive if you don't have it everyday. It's on par with what you would spend at the movies on the weekend. And caffeine helps creative.

Kevin Granato
Copywriter