ISBN 0-324-03058-4
Case Teaching Package
A case teaching package is available for this case. It includes strategies for case presentation, key concepts, solutions to the assignment questions in the case, and suggestions for the most effective ways to work this case into your course.
Length
This case is 8 pages in length and its case teaching package is 10 pages.
Abstract
The management of Starbucks, a company which distributed gourmet coffees, equipment, and accessories through an expanding number of company-owned stores and other channels, is faced with a public relations nightmare. Jeremy Dorosin, a repeat customer of one of the company's stores, had purchased two Espresso machines - one for himself and one as a gift for a friend. Dorosin claimed that the machines were defective, and even that one was a used machine falsely sold as new. Dorosin also complained about the poor attitude and service he had experienced in his dealings with the company. Despite the company's efforts at resolving the difficulties Dorosin had encountered, he had not been satisfied and eventually took out a series of advertisements in the Wall Street Journal enjoining others who had experienced poor service from Starbucks to contact him. In addition to other customers, the news and talk show media made Dorosin an overnight celebrity. As his fame grew, so did his demands for larger and more complex settlements from the company. Dorosin's version of events and the version of the events accepted by management were distinctly at odds. The management has to decide what to do about Dorosin and his complaints. Should they settle, and if so, how?
The case was written for both graduate and undergraduate classes in: Marketing Management, Marketing Strategy, Consumer Behavior, Customer Service, Service Marketing, Marketing Communications, Public Relations/Publicity, Business Ethics, Business Communications, Retail Management
Study Questions
- Is Dorosin a "righteous consumer" or an opportunist? Does it matter?
- Was Starbucks prepared for a customer service problem? What are the issues which need to be considered in a service recovery situation?
- How could Starbucks have handled the situation better?
- What are the ethical dimensions of this situation?
- What should Betsy Reese do?
Key Words
management, consumer behavior, marketing strategy, marketing communications, business ethics, retail management
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