Starbucks recently faced criticism for changing the way consumers could earn free food and beverage in its loyalty program.Originally,consumers could earn 1 star for each purchase - regardless of dollar value spent.However,the new program ties the star benefit to the dollar amount spent by a customer - rewarding those who spend more with more points.The Star program is frequently utilized by Starbucks to entice its members to return to the outlet.The company utilizes e-mail and in-app promotions to maintain an loyal following.What type of segmentation is Starbucks utilizing with its Star rewards program?

A)product-related
B)demographic
C)geographic
D)psychographic

Question

Starbucks recently faced criticism for changing the way consumers could earn free food and beverage in its loyalty program.Originally,consumers could earn 1 star for each purchase - regardless of dollar value spent.However,the new program ties the star benefit to the dollar amount spent by a customer - rewarding those who spend more with more points.The Star program is frequently utilized by Starbucks to entice its members to return to the outlet.The company utilizes e-mail and in-app promotions to maintain an loyal following.What type of segmentation is Starbucks utilizing with its Star rewards program? ​
​
A)​product-related
B)​demographic
C)​geographic
D)​psychographic

Quizplus · Accepted Answer

Starbucks is using product-related segmentation by focusing on consumer behavior and spending patterns to reward customers based on their purchase amounts.

Starbucks Recently Faced Criticism for Changing the Way Consumers Could