Abstract
This study models the purchasing behavior of specialty coffee by 114 coffee shops across 15 cities in nine states in Mexico. Simple and multilevel mixed-effects logistic models are tested. Our models extend the framework used in prior research. We model the purchase of specialty coffee as a function of: (a) material attributes, (b) symbolic attributes, (c) coffee shop characteristics, (d) profile of the coffee shop’s owner, and (e) socio-economic variables of the cities where the coffee shops were located. Overall, our results are consistent with expectations developed from the coffee literature. That is, the likelihood of purchasing specialty coffee increases when: coffee’s aroma drives the purchase, coffee purchased is from the state of Oaxaca, the coffee shop has a value-added business model, the coffee shop is diversified selling both ground coffee and coffee drinks, the coffee shop owner’s knowledge on coffee supply chain activities is high, and the coffee shop is located in a city with a higher education index. In contrast, the likelihood of purchasing specialty coffee decreases when a coffee professional tastes the coffee before the purchase, when coffee shops are not given the opportunity to roast their own coffee, and in coffee shops located in larger cities. Overall, our research suggests that the specialty coffee niche in Mexico has some elements required for this segment to transition from a supply chain approach to a value-based supply chain approach. This might be particularly beneficial for smallholder coffee growers, who despite several constraints contribute to the sustainability of coffee supply chains.
Highlights
IntroductionFollowing the international market liberalization of coffee in the late 1980s, global coffee production and price volatility increased and overall product quality declined [1]
Many have studied the relationship between specialty coffee quality and symbolic attributes [62,63,64,65] and only recently specialty coffee quality was modeled as a function of both symbolic and material attributes [18]
The likelihood of purchasing specialty coffee increases when: coffee’s aroma drives the purchase, coffee purchased is from the state of Oaxaca, the coffee shop has a value-added business model, the coffee shop is diversified selling both ground coffee and coffee drinks, the coffee shop owner’s knowledge on coffee supply chain activities is high, and the coffee shop is located on a city with a higher education index
Summary
Following the international market liberalization of coffee in the late 1980s, global coffee production and price volatility increased and overall product quality declined [1]. As a reaction to the decline in coffee quality, the concept of specialty coffee was introduced in the coffee industry. Starbucks® initiated the commercialization of specialty coffee in the United States in the 1980s, marking a turning point in coffee consumption. Offered a more artisanal beverage prepared with better beans, immediate extraction, advanced preparation techniques, and more personalized interaction with the client [2]. All of this new dynamic inspired a generation of young coffee entrepreneurs [3,4]
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