[Related to the Apply the Concept on page 78] Would
you pay $12 for a cup of coffee? Starbucks is betting
enough people will say “yes,” as it launches a chain of
luxury coffee shops called Starbucks Reserve. Which
generation(s) do you expect Starbucks Reserve to attract:
baby boomers (ages 53 and over), generation X (ages 33
to 52), or millennials (ages 13 to 32)? Briefly explain. To
be successful as a luxury coffee bar, how does Starbucks
need to distinguish Starbucks Reserve coffee shops from
its standard Starbucks coffee shops?
Source: Julie Jargon, “Middle-Market Woes Inspire Starbucks’s Bet
on Luxury Coffee,” Wall Street Journal, December 5, 2016.