Abstract

This study aimed to derive optimal choice pairs according to respective property levels of coffee shop service quality factors by using the choice experiment method and estimate their value. Based on previous studies and focus group interview results, a total of five properties—human service, physical environment, additional services, coffee quality, and price of Americano—were divided into three levels. Through orthogonal array design, the number of reasonable alternatives for the survey has been found to be 36, and a total of 18 choice sets have been derived. The survey collected a total of 700 valid samples by targeting men and women who had visited a coffee shop in the metropolitan area in the past year. As a result of the analysis, it has been found that customers were willing to pay 264 won more when human service was improved to a high level and 526 won more when the physical environment was enhanced to a high level. Meanwhile, it has been identified that additional services have reversed lost value by 476 won when they are improved to a high level. Also, coffee quality reversely lost its value by 557 won when improved to a high level and 546 won when enhanced to a very high level. This study is academically meaningful in the sense that it first provided an adequate value level regarding respective properties by estimating marginal willingness to pay, and secondly, it provided significant basic data for coffee shops in setting reasonable coffee prices and establishing highly effective investment strategies.

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