Abstract

This study analyzed the sensitivity of Americano prices recognized by customers at large coffee houses and small and medium-sized franchise coffee houses amid continuous changes in coffee prices and overheated competition in the coffee market. As a result, the indifference price(IDP) of large coffee houses was KRW 4,400.01(accumulative ratio 27.89%) and the optimal price (OPP) was KRW 4,430.41, and small and medium-sized franchise coffee houses were KRW 2,870.24(accumulative ratio 27.57%) and KRW 3,110.67 (OPP). As the point of marginal cheapness(PMC) and Expensiveness(PME) were analyzed to be 3,310.84 won to 5,472.29 won for large and small franchises and KRW 1,801.43 to KRW 3,502.75, respectively, the price stress factor was higher than that of small and medium-sized franchise stores. Based on these results, several implications were derived that could help the coffee house Americano price strategy.

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