Wednesday, August 30, 2006

Starbucks is a ripoff? We report, you decide.

Article from the UK Metro

"The marketing ploy is known as 'product sabotage'. This involves only large measures of drinks being featured on their menu boards.

Tills (Cash registers) have a button for the smallest drink, which at 8oz and a third cheaper is simply not listed to customers, so coffee bar frequenters do not know it exists.

The investigation was undertaken by Tim Harford, who presents the new BBC2 series Trust Me, I'm an Economist.

Harford said: 'The most lavish drinks generate the highest profits.

Coffee companies hide or downplay the cheaper drinks in the hope that customers will buy something pricier.'

Link