In marketing, we assume that people buy what they buy because it’s the best value. But that isn’t always the case. Take Starbucks, which is well on its way to its goal of having more U.S. locations than McDonald’s. While its popularity shows no signs of waning, a recent consumer survey showed that customers don’t give the chain high marks for value. In other words, they believe they’re paying too high a price for what they get. And yet, nearly a quarter of those customers visit at least every other day. Why? Because Starbucks has built a brand that people like attaching to themselves. Making the brand itself the main attraction allows you to earn much higher profit margins than your competitors.
