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An Analysis of Customer Price Sensitivity to Americano among Three Franchise Coffeehouses Using Price Sensitivity Measurement: A Case Study of Starbucks, Edya and Paik’s Coffee

Sukbin Cha 1 Kim, Young-Gook 2

1순천향대학교
2동국대학교

Accredited

ABSTRACT

Using the PSM(price sensitivity management) technique, this study attempted to develop pricing strategy based on an understanding about customer perceived price sensitivity of Americano coffees in three coffee franchises(Starbucks, Edya and Paik’s Coffee). The data were collected from 210 customers during their visits to the three coffee chain stores in the Seoul metropolitan area from April 20th to May 15th, 2016. The results revealed that the current prices of Americano for three brands were within the range of an acceptable price. Among the three brands, Edya revealed the widest price stress, the narrowest acceptable price range, and the biggest stress factor while Starbucks revealed the lowest cumulative rate of indifference to price. In the case of Paik’s Coffee, respondents were second place in acceptable price range and had the least price sensitivity in the cumulative rate of indifference to price, price stress, and the general stress factor. In conclusion, the price sensitivity of Americano at the Edya chain was the highest followed by Starbucks and Paik’s Coffee. This study concluded with implications of the research findings and suggestions for future research areas.

Citation status

* References for papers published after 2022 are currently being built.