Question

NARRBEGIN: Starbucks Loyalty Rewards
Starbucks Loyalty Rewards
The First Starbucks opened in 1970 in Seattle Washington. The demand for its coffee grew and Starbucks added more than 6,000 stores located in over 30 countries. In its more than 30 year history, Starbucks has never given out coupons for its coffee. Starbucks had only to make its coffee and customers came. Recently consumer quality perception of the Starbucks brand has started to fall. Starbucks started a consumer-response blog to learn more about what consumers expect from Starbucks. One of the most frequent requests was for a customer rewards program. In response Starbucks has started the Starbuckscard rewards which offers free refills on brewed coffee, free beverage with whole bean purchase, beverage customization and free Wi-Fi. Starbucks also put coupons in a national newspaper for those consumers who love coupons and created a new brew of coffee for those who prefer a milder coffee taste. Starbucks is hoping with these improvements will restore customers' loyalty and confidence.
NARREND
Refer to Starbucks. Which of the four conditions did NOT exist in the minds of the Starbucks consumer, resulting in declining sales?
a. Each party has something of value to the other party
b. Each party is capable of communication and delivery
c. Each party is free to accept or reject the exchange offer
d. Each party believes it is appropriate or desirable to deal with the other party
e. There must be at least two parties for exchange to occur

Answer

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