Main Article Content
Abstract
This study examines the impact of pricing strategies on customer sat-isfaction, aiming to improve customer experiences and foster long term loyalty within the coffee shops business in Camarines Norte, Philippines for the year 2022. Utilizing a descriptive correlational research design, data was collected through face-to-face interviews with 150 respondents selected via purposive sampling. The findings reveal that the majority of respondents were females aged 15-30, vis-ited coffee shops weekly. Sixty-two (62) percent of the respondents describe that coffee shops establishments used competitive-based pricing. Among various pricing strategies, value-based pricing was perceived as the most effective, with an average rating of 4.60. Re-spondents strongly agreed that service quality aligned with pricing strategies significantly influences customer satisfaction, scoring an average of 4.26. A test of significant relationship using Biserial corre-lation coefficient between competitive pricing, value-based pricing, and product bundle pricing regarding the impact on customer satis-faction cues indicate a statistically significant relationship at p<0.05, denoting a positive relationship between the pricing strategies and customer satisfaction. The study concludes that pricing strategies is a crucial element of the marketing mix that directly affects customer satisfaction and business profitability. Although, no universal pricing strategy may exist, understanding customer satisfaction is essential for identifying effective pricing policies. Therefore, it is recommended that coffee shops need to develop comprehensive business models to enhance pricing strategies aimed at increasing market share and sus-taining growth in the coffee shop sector.
Article Details
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Abdulsalam, T. A., Omolaja, R. A., Tajudeen, R. B., & Abdulazeez, S. O. (2024). Efficacy of Digital Pricing Strategies on Customer Buying Decisions in the E-Commerce In-dustry: A PLS-SEM Approach. African Journal of Stability and Development (AJSD), 16(1), 73–123. https://doi.org/10.53982/ajsd.2024.1501.03-j
Ahmed, S., Al Asheq, A., Ahmed, E., Chow-dhury, U. Y., Sufi, T., & Mostofa, M. G. (2023). The intricate relationships of consumers’ loyalty and their perceptions of service quality, price and satisfaction in restaurant service. The TQM Journal, 35(2), 519-539. https://doi.org/10.1108/TQM-06-2021-0158
Ali, B. J., & Anwar, G. (2021). Marketing Strate-gy: Pricing strategies and its influence on consumer purchasing decision. Interna-tional journal of Rural Development, Envi-ronment and Health Research, 5(2), 26–39. https://doi.org/10.22161/ijreh.5.2.4
Alfonso, R. (2017). Here are 7 Reasons Why Millennial Women Spend More on their Coffee than
Anything Else. https://pop.inquirer.net/29636/7-reasons-why-millennial-women-spend-more-coffee
Ali, D., Alam, M., & Bilal, H. (2021). The Influ-ence of Service Quality, Price, and Envi-ronment
on Customer Loyalty in the Restaurant’s Indus-try: The Mediating Role of Customer Sat-isfaction. Journal of Accounting and Fi-nance in Emerging Economies, 7(1), 143-154. https://doi.org/10.26710/jafee.v7i1.1587
Ali, S., Hussain, R. Y., Iqbal, S., Qalati, S. A., & Yuan, L. W. (2019). Impact of Price on Customer
Satisfaction; Mediating Role of Consumer Buy-ing Behaviour in Telecom Sector. Inter-national Journal of Research, 6(4).
Amoako, G. (2022). Customer Satisfaction: Role of Customer Service, Innovation, and Price in
the Laundry Industry in Ghana. Journal of Afri-can Business, 23(1), 146-164, https://doi.org/10.1080/15228916.2020.1826855
Anderson, J. (2019). Why are Coffee Shops So Popular? https://esquirescoffee.co.uk/news/why-coffee-shops-so-popular/
Bosso, H., Barbalho, S., Goulart, R., & Otoboni, A. (2021). Green Coffee: Economic Rele-vance
and a Systematic Review of the Effects on Hu-man Health. Critical Reviews in Food Sci-ence and Nutrition. https://doi.org/10.1080/10408398.2021.1948817
Business Mirror. (2018). Capital for Small Cof-fee Shop in the Philippines. https://startmycoffeeshop.com/capital-for-small-coffee-shop-in-the-Philippines/
Carson, H. (2017). Café Pricing Strategy. https://bizfluent.com/how-8514302-make-menu-
fastfood-restaurant.html
Chaerudin, S., & Syafarudin, A. (2021). The Ef-fect of Product Quality, Service Quality, Price On
Product Purchasing Decisions on Consumer Satisfaction. Ilomata International Jour-nal of Tax and Accounting, 2(1), 61-70. https://doi.org/10.52728/ijtc.v2i1.202
Chan, M. (2017). How Your Pricing Strategy Affects Customer Satisfaction. https://www.unleashedsoftware.com/blog/pricing-strategy-affects-customer-satisfaction
Chan, S., Nasir, N., and Zahari, Z. (2018). The Effect of Sponsorships, Personal Selling and Pricing
Strategies on Customer Engagement and Its Impact on Customer Retention of Dental Equipment Industry in Indonesia. In The 8th Annual International Conference (AIC) on Social Sciences (pp. 8, 21-36). Banda Aceh, Indonesia: Syiah Kuala University.
Daufina, D., Sutrisno A. D., & Priangani, A. (2019). The Rise of the Coffee Business Opportunity in Asia. http://proceedings.confe-rence.unpas.ac.id/index.php/oneasia/article/view/452/374
Dawson, T (2021). How Starbucks Uses Pricing Strategy for Profit Maximization. https://www.priceintelligently.com/blog/author/tucker-dawson
Djumarno, S. A., & Said, D. (2018). Effect of Product Quality and Price on Customer Loyalty through Customer Satisfaction. International Journal of Business and Management Invention.
Fehrenbach, D., & Herrando, C. (2021). The effect of customer-perceived value when paying for a product with personal data: A real-life experimental study. Journal of Business Research, 137, 222-232, https://doi.org/10.1016/j.jbusres.2021.08.029.
Fernando, J. (2021). What Is the Correlation Coefficient? https://www.investopedia.com/terms/c/correlationcoefficient.asp
Gautama, A. H., & Rahadi, R. A. (2020). Cus-tomer Preferences on Coffee Shop Con-sumptions: A
Conceptual Model. International Journal of Business, Entrepreneurship and SMEs, 2(3), 19-32. https://doi.org/10.35631/AIJBES.23003.
Ge, Y., Yuan, Q., Wang, Y., & Park, K. (2021). The Structural Relationship among Per-ceived
Service Quality, Perceived Value, and Custom-er Satisfaction-Focused on Starbucks Re-serve Coffee Shops in Shanghai, China. Sustainability, 13(15), 8633. http://doi.org/10.3390/su13158633
Haq, I. (2018). Determination of Price and Cus-tomer Satisfaction. Journal of Economi-cate Studies, 1(2), 97-108. https://doi.org/10.32506/joes.v1i2.179
Higashi, Y. (2019). Coffee and Endothelial Function: A Coffee Paradox? Nutrients, 11, 2104. https://doi.org/10.3390/nu11092104
Jannah, E. D. T., & Dwijayanti, R. (2021). The Effect of Cafe Attempt and Prices on Cus-tomer
Satisfaction Coffee Shop Source Coffee Si-doarjo. Journal Mantik, 5(2), 898-906. https://doi.org/10.35335/jurnalmantik. Vol5.2021 .1417
Jawabreh, O., Masadeh, R., Bqaaeen, Y., & Alshurideh, M. (2023). Pricing Policies and Their Impact on Customer Satisfac-tion. In M. Alshurideh, B. H. Al Kurdi, R. Masa’deh, H. M. Alzoubi, & S. Salloum (Eds.), The Effect of Information Tech-nology on Business and Marketing Intelli-gence Systems. Studies in Computational Intelligence, Vol. 1056. Springer, Cham. https://doi.org/10.1007/978-3-031-12382-5_138
Javed, S., Rashidin, M. S., & Jian, W. (2021). Predictors and Outcome of Customer Sat-isfaction:
Moderating Effect of Social Trust and Corpo-rate Social Responsibility. Future Bus Journal, 7, 12. https://doi.org/10.1186/s43093-021-00055-y
Leano, P. (2018, March 31). Philippine coffee industry is hot and brewing. https://industry.gov.ph/philippine-coffee-industry-is-hot-and-brewing/
Leedy, P., & Ormrod, J. (2001). Practical Re-search: Planning and Design (7th ed.). Thousand Oaks,
CA.: SAGE Publications
Li, J. (2021). Impact of tourists’ perceived val-ue on brand loyalty: a case study of Xixi National
Wetland Park. Asia Pacific Journal of Tourism Research, 26(3), 262-276. https://doi.org/10.1080/10941665.2020.1862882
Kaura, V., Chalasani, D. P. S., & Sharma, S. (2015). Impact of Service Quality, Service
Convenience and Perceived Price Fairness on Customer Satisfaction in Indian Retail Banking Sector. Management and Labour Studies, 39. 127-139. https://doi.org/10.1177/0258042X14558188
Kim, J., & Park, E. (2021). The Spatial Design Marketing Strategy of Global Franchises That Take
into Consideration the Characteristics of Mod-ern Consumers—A Study Involving the Global Coffee Companies of Starbucks and Blue Bottle. Land, 10(7), 716. http://doi.org/10.3390/land10070716
Khartit, K. (2020). Competitive Pricing. https://www.investopedia.com/terms/c/competitive-pricing.asp
Khedkar, C. E., & Khedkar, A. E. (2021). Pric-ing: A key ingredient of marketing strate-gy.
Vidyabharati International Interdisciplinary Research Journal, 13(1), 429-432.
Kotler, P. & Youg Gui, W. (2021). 7 P’s of Mar-keting Management. https://www.summariesworld.com/2021/05/marketing-management-book-summary.html
Magloff, L. (2020). Cafe Pricing Strategy. https://smallbusiness.chron.com/cafe-pricing-strategy-2722.html
Manikandan S. (2011). Frequency distribution. Journal of pharmacology & pharma-cotherapeutics, 2(1), 54–56. https://doi.org/10.4103/0976-500X.77120
Maspul, K. A. (2024). Pricing Consistency in Coffee Business Management: A Compre-hensive Study. Journal Arbitrase:
Economy, Management and Accounting, 2(02), 78–86. Retrieved
from http://paspama.org/index.php/Arbitrase/article/view/103
McCormick, M. (2017) How to Use Pricing to Improve Customer Retention. https://www.google./amp/s/blog.blackcurve.com/how-to-use-pricing-to-improve-customer-retention
Miao, R., Guo, P., Huang,W., Li, Q., & Zhang, B. (2022). Profit model for electric vehicle rental service: Sensitive analysis and dif-ferential pricing strategy. Energy, 249, 123736. https://doi.org/10.1016/j.energy.2022.123736.
Miralles-Quiros, M., Miralles-Quiros, J., & Re-dondo-Hernández, J. (2019). The impact of environmental, social, and governance performance on stock prices: Evidence from the banking industry. Corporate So-cial Responsibility and Environmental Management, 26(6), 1446-1456.
Moretti, J. (2022). The 11 Reasons Why Coffee Shops Fail (A Practical Guide). https://www.google.combaristajoy.com/why-coffee-shopsfail
Njei, Z. (2018). Relationship between custom-er satisfaction and customer loyalty. https://urn.fi/URN:NBN:fi:amk-201805178799
Pamurty, S. S. (2020). Attributes of the Coffee Shop Business toward Customer Satisfac-tion: Empirical Evidence From Starbucks Empire XXI Yogyakarta. Semantic Schol-ar: https://www.semanticscholar.org/paper/Attributes-Of-The-Coffee-Shop-Business-Toward-
Pelc, K. (2022). Beyond Self-Interest: Why the Market Rewards Those Who Reject It. Ox-ford University Press.
Perfect Daily Grind. (2020). How to Meet the Needs of Today’s Coffee Shop Customer. https://perfectdailygrind.com/2020/06/how-to-meet-the-needs-of-todays-coffee-shop-customer/
Philippine Statistics Authority. (n.d.). Philip-pine Coffee Industry Roadmap for 2017-2022. https://www.da.gov.ph › Phili...PDF Web results 2017-2022 Phil-ippine Coffee Industry - Department of Agriculture
Prabhu, N., & Aithal, P. S. (2022). A new model on customers’ attraction, retention, and delight (CARD) for green banking prac-tices. Retention, and Delight (CARD) for Green Banking Practices (30 6, 2022).
Prasilowati, L., Suyanto, S., Safitri, J., & Warda-ni, M. (2021). The Impact of Service Qual-ity on Customer Satisfaction: The Role of Price. Journal of Asian Finance, Econom-ics and Business, 8(1), 451–455. https://doi.org/10.13106/jafeb.2021.vol8.no1.451
Rivai, J. (2021). The role of purchasing deci-sions mediating product quality, price perception, and brand image on customer satisfaction of Kopi Janji Jiwa. Journal of Business and Management Studies, 3(2), 31-42.
Pedro, M. (2020). The Complete Guide on Opening a Café. https://fnbreport.ph/12791/guide-on-opening-a-cafe/
Robichaud, Z., & Yu, H. (2022). Do young con-sumers care about ethical consumption? Modelling Gen Z’s purchase intention to-wards fair trade coffee. British Food Journal, 124(9), 2740-2760.
Sasongko, F. (2020). Attributes of Coffee Shop as Antecedent of Customer Satisfaction. Journal of Business and Behavioural En-trepreneurship, 4(2), 106-124. https://doi.org/10.21009/JOBBE.004.2.09
Sihite, J., Tulung, J., & Pandowo, M. (2023). The influence of product price and store at-mosphere towards customer satisfaction at fellow coffee. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi Vol. 11 No. 1 (2023): JE. Vol 11 No 1 (2023) DOI: https://doi.org/1 0.35794/ emba. v11i1.45740
Singh, G., Slack, N., Sharma, S., Aiyub, A., & Ferraris, A. (2022), Antecedents and con-sequences of fast-food restaurant cus-tomers’ perception of price fairness, Brit-ish Food Journal, Vol. 124 No. 8, pp. 2591-2609. https://doi.org/10.1108/BFJ-03-2021-0286
Shamsudin, M. F., Nayan, S. M., Ishak, M. F., Esa, S. A., Hassan, S., & UniKL BiS (2020). Role of price perceptions towards cus-tomer satisfaction. http://hdl.handle.net/123456789/25126
Shen, C., & Yahya, Y. (2021). The impact of service quality and price on passengers’ loyalty towards low-cost airlines: The Southeast Asia perspective. Journal of Air Transport Management, Volume 91, 2021,101966, ISSN 0969-6997. https://doi.org/10.1016/j.jairtraman.2020.101966.
Stangor, C. and Walinga, J. (n.d.). Psychologists Use Descriptive, Correlational, and Ex-perimental Research Designs to Under-stand Behaviour. https://openpress.usask.ca/introductiontopsychology/chapter/psychologistsuse-descriptive-correlational-and-experimental-research-designs-to-understand-behavior/
Statista.com (2022). Total coffee consumption in the Philippines from 2014/15 to 2020/21. https://www.statista.com/statistics/314989/philippines-total-coffee-consumption/
Subrahmanyam, S., & Arif, S. (2022). Premium Pricing Strategy and Customer Reten-tion–An Analysis. International Journal of Early Childhood, 14(03), 2022.
Sugiono, E., & Aisyah, T., (2021). The Effect of Product Quality, Price and Promotion to Customer Satisfaction and Loyalty in You Coffee and Resto in Jagakarsa. Open Ac-cess Indonesia Journal of Social Sciences, 4(1), 181-194. https://doi.org/10.37275/oaijss.v4i1.38
Tarigan, E., Wijaya, M., & Marbun, P. (2020). The Influence of Lifestyle, Physical Envi-ronment, and Menu Variety on Customer Loyalty through Customer Satisfaction in the Coffee Shop. International Journal of Research and Review, 7(3), 102-111.
Tzeng, S., Ertz, M., Jo, M. & Sarigöllü, E. (2021). Factors affecting customer satisfaction on online shopping holiday. Marketing Intel-ligence & Planning, 39(4), 516-532. https://doi.org/10.1108/MIP-08-2020-0346
Topolska, K., Florkiewicz, A., & Filipiak-Florkiewicz, A. (2021). Functional Food—Consumer Motivations and Expec-tations. International Journal of Environ-mental Research and Public Health, 18(10), 5327. https://doi.org/10.3390/ijerph18105327
Tong, W., & Gunter, U. (2022). Hedonic pricing and the sharing economy: how profile characteristics affect Airbnb accommoda-tion prices in Barcelona, Madrid, and Se-ville. Current Issues in Tourism, 25(20).
Trebicka, B., Tartaraj, A., & Harizi, A. (2023). Analyzing the relationship between
pricing strategy and customer retention in hotels: A study in Alba-nia. F1000Research, 12, 690. https://doi.org/10.12688/f1000research.132723.1
Turney, S. (2022, December 05). Pearson Cor-relation Coefficient (r) | Guide & Exam-ples. Scribbr. https://www.scribbr.com/statistics/pearson-correlation-coefficient/
UpMenu. (2024). Restaurant Menu Pricing: 10+ Tips to Boost Menu Profit. UpMenu Blog. https://www.upmenu.com/blog/restaurant-menu-pricing/
Wadhawan, M., & Anand, A. (2016). Coffee and Liver Disease. Journal of Clinical and Ex-perimental Hepatology, 6(1), 40-46. https://www.sciencedirect.com/science/article/abs/pii/S0973688316000177
Wantara, P., Hamat, Z., & Tambrin, M. (2020). The Influence of Service Quality, Satisfac-tion, on Behavioral Intention: A Study on the Tourism Destination of Gili Iyang Is-land, Sumenep, Indonesia.
Wambugu, H., Maina, E., & Ndung’u, P. (2021). Strategic Marketing Approaches and Market Penetration by General Insurance Companies in Kenya.
Wantara, P., & Trambin. M. (2019). The Effect of Price and Product Quality Towards Customer Satisfaction and Customer Loy-alty on Madura Batik. International Tour-ism and Hospitality Journal, 2(1), 1-9.
Webb, R. (2021). How Big Is the Demand for New Coffee Shops? https://justlovecoffeefranchise.com/research/size-coffee-shop-market/
Wedhana, I., & Seminari, N. (2019). The Effect of Price, Service Quality, and Brand Im-age on Customer Satisfaction. Interna-tional Journal of Management and Com-merce Innovations, 7(1), 568-576.
Wen, D., Xiao, T., & Dastani, M. (2020). Pricing and Collection Rate Decisions in a Closed-Loop Supply Chain Considering Consum-ers’ Environmental Responsibility. Jour-nal of Cleaner Production, 262, 121272.
Ziari, M., Ghomi-Avili, M., Pishvaee, M. S., & Jahani, H. (2022). A Review on Competi-tive
Pricing in Supply Chain Management Problems: Models, Classification, and Ap-plications. International Transactions in Operational Research, 29(4), 2082-2115.
Zhang, J., & Chiang, W. Y. K. (2020). Durable Goods Pricing with Reference Price Ef-fects. Omega, 91, 102018.
Zhong, Y., & Moon, H. (2020). What Drives Customer Satisfaction, Loyalty, and Hap-piness in Fast-Food Restaurants in China? Perceived Price, Service Quality, Food Quality, Physical Environment Quality, and the Moderating Role of Gender. Foods, 9, 460. https://doi.org/10.3390/foods9040460