Extended Essays 2021

Physical Evidence

The ‘ physical evidence ’ includes the elements of the physical environment that the customer experiences, the

atmosphere and customer service. The quality of baristas is said to have declined as Starbucks widened its

pool of applicants in order to meet demand at new stores. Furthermore, the decision to switch to vacuum

packaged coffee, caused the physical environment of the café to change as there was no longer the enticing

aroma of the delicious coffee beans. In-store, it has been noted that there are fewer soft chairs and less

carpeting. These changes caused Starbucks to lose ground in the Service and Surroundings category of the

Brand Keys Customer Loyalty Engagement Index 20 . This clearly demonstrates that Starbucks has sacrificed

its customer service quality and physical environment for a convenient fast service while charging premium

prices. Australians view buying coffee as an experience, so sacrificing Starbucks ’ attractive atmosphere and

physical environment does not appeal to the Australian consumer, hence partially contributing to Starbucks’

failure in expansion into Australia.

20 Nation’s Restaurant News. (2008). Starbucks- dominated category wakes up and smells McD’s espresso rollout . [online] Available at: https://www.nrn.com/archive/starbucks-dominated-category-wakes-and-smells-mcd-s-espresso rollout [Accessed 17 Jul. 2021].

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