Do you feel intimidated against megabrands such as Starbucks? Don’t be. According to Bloomberg Businessweek, a new study recently found that Starbucks don’t kill local coffee shop business, it actually increases sales:
The study, which was published in the Journal of Marketing Research, found that when a bookstore advertised that its “main competitors are large multi-billion dollar corporations,” people were more likely to buy books and to spend more money on them than if no competitor was mentioned. And when the participants were offered $1 or a chocolate bar as compensation for being in the study, they opted for the chocolate when they thought it was facing a challenge from a larger candy company.
The study also suggests that coffee shops that are closer to Starbucks tend to have higher reviews on Yelp. The researchers found that when people reviewing a Peet’s Coffee & Tea store mentioned Starbucks more often, the overall rating of the Peet’s store increased.
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