Exploring The Coffee Shop Industry

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Introduction: A cup of Joe, Java or brew, it goes by many names. It can be your morning jump-start or as an afternoon pick me up, to be enjoyed alone or with the company of others. It 's a drinkable source of energy that is enjoyed in the United States and in many other places around the globe. Its no wonder that coffee is such a popular commodity. Companies such as Starbucks and Peets’ have revolutionized the coffee shop industry in the US, by making it easy and convenient for consumers to purchase single-serving cups of coffee. Not only is the service quick and convenient but it also allows consumers the ability to personalize their drinks to their desired preference, making it a more enjoyable experience than just having a cup of…show more content…
From there, it was introduced throughout the Americas, and so began the history of the coffee shop industry in the United States. Now a day coffee shops are seen as a go to place to either relax, get work done, or to go socialize with friends. This has in turn created a new type of coffee culture, making coffee shops the place to be. “When a firm offers a variety of products in response to different consumer taste, it is called horizontal product differentiation” (pg 130). Since firms like Starbucks, Peets’, and Dunkin’ Donuts are able to differentiate the same product (coffee) in order to reach out to a larger number of consumers with different preferences, they will be considered a market with horizontal product differentiation. To add more variety from the selling standpoint, firms like these who excel in coffee sales also choose to sell complementary goods to be had on the side with the consumer 's beverage of choice, such as pastries, fruit, sandwiches, etc. and they even have substitutes for coffee, such as teas and frappuccinos. This is an important industry to look at since about 64% of Americans consume coffee daily (Statista). Out of the Americans who consume coffee, about 63% buy their coffee from places like Starbucks and Dunkin’ Donuts showing how relevant this industry is in the
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