Remaining in a "commodity status" is not a good position in the long run, as this status limits a company's ability to set prices above market prices (Somma, 2015). For this very reason, many companies find it financially profitable to successfully "brand" their commodities. Starbucks has been able to rise above the commodity status, and charge above the market price for its products. There appear to be several factors that have contributed to Starbucks ability to take a commodity product and successfully differentiate it to the point where customers are willing to pay higher prices to obtain it. One factor seems to be the connection that Starbucks has with its customers (Ferrell & Hartline, 2014). The ability to connect with customers on an emotional level is a great place for a company to be. Starbucks has been able to do this, and this connection is part of what breeds loyal customers who are willing to pay more for products. One source reports that Starbucks …show more content…
Each of these partnerships helped Starbucks to enter into new markets while also helping to solidly its brand. Starbucks has also demonstrated social consciousness through its affiliation with various service organizations, and through its own efforts to foster positive social impacts on a global level. A few of Starbucks' global missions related to social responsibility include youth training programs, community stores, support for veteran and military, diversity and their affiliation with (RED), a foundation that combats the AIDS and HIV epidemic in Africa (Starbucks, 2017). These endeavors may have helped Starbucks to reach new customers. Furthermore, customers may have remained loyal and willing to pay more for products because they knew that Starbucks made efforts to make a difference in the community and