Now that Barnes & Noble and Microsoft have parted ways on a partnership to produce and sell the Nook e-reader, the book retailer is yet again faced with having to reimagine its business model for an increasingly tech-centric world.

For inspiration, it should look no further than the coffee shops inside many of its stores, according to Wharton marketing professor Peter Fader .

“Barnes & Noble doesn’t really know who its competition is,” said Fader, who is also co-director of the Wharton Customer Analytics Initiative . “It always thought it was Amazon or other companies that are selling books. competition is Starbucks. It should be a place for people to go and hang out and spend some quality time and learn a thing or two. That is where the money is to be made.”

Fader and Wharton management professor Emilie R. Feldman discussed how the retailer could emerge stronger after buying out Microsoft’s stake of the Nook business on the Knowledge at Wharton show on Wharton Business Radio on SiriusXM channel 111 .…