is Starbucks strategy is cost based?
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Premium Pricing involves setting the prices of products higher than comparable products. Starbucks sets its prices on a simple idea: high value at moderate cost. ... When people feel like they are getting a good deal for their money, they are more likely to pay a higher cost.
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The core competence of Starbucks has been its ability to effectively leverage their cornerstone product differentiation strategies by offering a premium product mix of high quality beverages and snacks.
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