Running head: DATA ANALYSIS FOR BUSINESS DECISIONS 1

Data Analysis for Business Decisions

Unit 5: Data Gathering and Analysis

Capella University
DATA ANALYSIS FOR BUSINESS DECISIONS 2

Table of Contents
Data Gathering and Analysis...........................................................................................................3
Starbucks Visa Duetto Card Discussion Question 2........................................................................3
1. Dilemma...................................................................................................................................3
2. Management Questions............................................................................................................3
3. Investigative Questions............................................................................................................3
4. Research Questions..................................................................................................................3
5. Measurement Questions...........................................................................................................3
6. Management Decisions............................................................................................................3
Starbucks Visa Duetto Card Discussion Question 4........................................................................4
Ethical Issues...................................................................................................................................4
Qualitative Data to Support Business Decision Making.................................................................4
References........................................................................................................................................6
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Data Gathering and Analysis

Starbucks Visa Duetto Card Discussion Question 2

1. Dilemma

Do consumers have a profound interest in obtaining/using a Starbucks credit card? Is the

Starbucks Duetto Visa Card functional in everyday use? Will anyone really want to use a dual-

function card instead of having two individual cards?

2. Management Questions

What are the brand benefits of the Duetto Visa Card? How will customers perceive the

value of the benefits received? What should the target market be for these credit cards, and how

would the company go about launching a promotion?

3. Investigative Questions

Do the proposed benefits accurately appeal to consumers? Do people really care enough

about the proposed benefits to draw interest? Does the Duetto Visa Card hinder the Starbucks’

brand or help it?

4. Research Questions

Should there be an initial test launch before a full market launch? Does the planned give-

back-to-the-community (Cooper, 2008) component have any value to the customer?

5. Measurement Questions

How damaged will Starbucks’ reputation be if the Duetto Visa Card fails to meet

expectations? How much money will consumers lose if the Duetto Visa Card is discontinued?

6. Management Decisions

After careful consideration, it is in Starbucks best interest to launch the Starbucks Duetto

Visa Card while utilizing the planned give-back-to-the-community part (Cooper, 2008).
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Starbucks Visa Duetto Card Discussion Question 4

The sample frame of appropriate participants for future online or phone surveys should

consist of current and past users of the Starbucks Visa Duetto Card. This population would

ensure appropriate data is received from consumers who are experienced users and understand

the benefits and usability (Bowerman, 2016) of the card. These consumers will be able to share

their experiences with customer service, how often they used the card, whether they enjoyed the

give-back-to-the-community program, or if they even used the card at all.

Ethical Issues

It is imperative that Starbucks remains ethical with their decision-making regarding

demographics. They must understand who their target market (Bowerman, 2016) is and ensure

they don’t promote the card towards one specific category such as race, age, or any other

potentially discriminative groups. Also, when dealing with partner banks, Starbucks takes a huge

risk with the names Bank One and Visa. Starbucks must take responsibility for the partner

company’s actions if they are deemed irresponsible or unethical. If Visa were to get caught up in

a scam, Starbucks would now face ramifications, too. Additionally, when partnering with other

companies, fees tend to incur and may be higher than consumers anticipated when signing up for

this rewards program. Each partner wants their share of profit, so it must be clearly stated all fees

associated with the rewards program and card usage.

Qualitative Data to Support Business Decision Making

Qualitative data can be used to support better business decision making. Starbucks can

use this information to ensure the launch of its Starbucks Visa Duetto Card will have a high

success rate. Further, qualitative data can be utilized to measure people’s reactions to the rewards

system and better understand the longevity of the program. By issuing surveys or questionnaires
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to consumers’ email addresses, non-numerical data can be accrued and used to estimate a

population’s consensus about certain products.

Three different methods of qualitative data collection and analysis can be supported

through individual interviews, observations, and focus groups. These cases are generally time

consuming and are collected from a smaller sample size. When dealing with individual

interviews, Starbucks can use open-ended questions to obtain high-quality responses from its

participants. The data received represents consumer feelings and experience. Next, observations

can be used to initiate direct interaction with individuals, but on a 1-to-1 basis. This can result in

better understanding consumer behavior and actions. Finally, focus groups can generate well-

written responses with lots of details and extensive feedback on product offerings. Regardless of

which method of collecting qualitative data is used, all should garner rich responses with tons of

useable data.
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References

Bowerman, B.L., O’Connell, R. T., Murphree, E. S., (2016). Business Statistics in Practice:

Using Data, Modeling, and Analytics, 8th Edition. [Capella]. Retrieved

from https://capella.vitalsource.com/#/books/undefined/

Cooper, D.R., Schindler, P.S. (2008). Starbucks, Bank One, And Visa Launch Starbucks Duetto

Visa. Business Research Methods (11th ed).