Price Sensitivity Research: Coffee Retail Segment
Nielsen Consumer Insights Panel - 2025

Methodology: Conjoint analysis with 3,400 coffee purchasers

Price Elasticity by Category:
- Basic drip coffee: High elasticity (-2.1)
- Standard latte: Moderate elasticity (-1.4)
- Specialty drinks: Low elasticity (-0.8)
- Cold brew/nitro: Low elasticity (-0.7)

Acceptable Price Ranges:
Drip coffee (12oz):
- Floor: $2.50
- Sweet spot: $3.25
- Ceiling: $4.00

Latte (16oz):
- Floor: $4.50
- Sweet spot: $5.75
- Ceiling: $7.00

Specialty drink:
- Floor: $5.50
- Sweet spot: $6.75
- Ceiling: $8.50

Price Increase Tolerance:
- Annual 3-5% increase: 78% acceptance
- Annual 6-10% increase: 52% acceptance
- Annual 10%+ increase: 23% acceptance

Framing Effects:
- "Price increase due to quality ingredients": +18% acceptance
- "Price increase due to fair wages": +22% acceptance
- "Price increase due to costs": +4% acceptance

Value Perception Drivers:
1. Perceived quality (0.72 correlation with price acceptance)
2. Experience/atmosphere (0.58)
3. Convenience (0.44)
4. Brand reputation (0.41)
