Is it Worth the Price?
Background:
Everyone enjoys a cup of coffee to help them wake up, fight sleepiness, or stay awake to cram for finals. Popular coffee shops like Peet’s, Starbuck’s, and Blue Bottle can be found on almost every street corner. According to the National Coffee Association, coffee originated in Ethiopia, and then was spread to the Arabian Peninsula, where it was spread by Muslims on Pilgrimage to Mecca. Coffee really became popular in America after the British imposed a tea tax on the colonists. Now, coffee is grown all over the world, in Africa, South America, the Caribbean, Pacific Islands, and Asia (The History of Coffee).
According to StatisticBrain.com, over 100 million Americans drink coffee every single day, spending, on average, $165 per person each year on coffee alone. Four billion dollars each year is spent on importing coffee from around the world, and Americans spend about $18 billion on specialty coffee. The average size of a cup of coffee is nine ounces, and costs about $1.38 (Coffee Drinking Statistics). In late November, Starbucks began to sell a limited-time brew of coffee priced at seven dollars for a sixteen ounce cup. The coffee, called Costa Rica Finca Palmilera, is the most expensive cup that Starbucks has ever sold (Sanburn). Jimmy Kimmel introduced the coffee on his show, and conducted a taste test to research whether people could actually taste the difference between the $7 coffee and the regular brew. However, both brews in the test were identical (Kimmel). People’s belief that they were drinking a superior product altered how their taste perceived it. This concept inspired my own project, also with coffee, to see if people in San Francisco could tell the difference in the price between two drinks. How does product association relate to more expensive products versus cheaper products?
Detail:
The taste test was based around the premise of researching if people could actually tell the difference between two cups of coffee, based on what they were told about the coffee, even if they were the same. For my research, I conducted a taste test with two groups: one group had two different beans of coffee, and the other had the exact same bean in both cups. I wanted to compare people’s opinions between the actual test and the control test to see if they were able to identify a more expensive product based on the taste. To conduct the test, I surveyed 22 adults, many of whom drank coffee on a regular basis. Both coffees were African blends from Peet’s Coffee and Tea.
As part of my research, I visited Peet’s Coffee and Tea in downtown Walnut Creek to purchase coffee and examine their prices. For marketing reasons, Peet’s does not allow photographs of their menus. For my study, I used the Uzuri African Blend, priced at $14.95 per pound, and the Arabian Mocha Sanani, priced at $21.95 per pound. By comparison, Peet’s House Blend coffee costs $12.50 per pound. At Peet’s the coffee of the day costs $1.80 for a 12oz small, $2 for a 16oz medium, and $2.30 for a 20oz large. The coffee of the day offered usually varies between roasts of coffee priced between $12.50 and $14.50, although it can sometimes include higher priced specialty coffees, like their Holiday Blend. No matter the price of the beans, a single cup of coffee purchased in store costs the same amount.
On January 3, 2013, I tested 22 of my mom’s employees in San Fracisco from 9:00-11:30 a.m. To prepare for the taste test, I brewed a ten-cup pot of coffee with the same coffee maker and the same amount of coffee grounds. The Uzuri, the cheaper roast, was divided into two separate thermoses for the purpose of appearing different when pouring. The cups used were labeled A and B for the actual test with different coffees, and X and Y for the test between two cups of the Uzuri. I did not take video of the research because I wanted the subjects to be honest and open with their opinions, without feeling self-conscious, and to respect privacy.
The results showed that people were mostly able to tell the difference between the two different coffees. In the actual test between the two different blends, 62% of people preferred the Arabian Mocha Sanani, and 69% correctly guessed that it was more expensive. Participants said that they would pay about 35-50 cents extra for a cup of the Arabian over the Uzuri, while another claimed that he would pay 50 cents extra for the Uzuri, which is the cheaper blend. People’s comments about the Arabian coffee included that is was “easier to drink,” “stronger,” “polluted, and not fresh,” “robust,” “more intense,” “smoother,” and, “has many flavors.”
The results of the control taste test were more interesting. Of the nine tested, 88% of the participants claimed to prefer one of the coffees over the other. The table above on the right shows which people had a preference of one of the cups of the Uzuri over the other. Only one person correctly claimed that there was no difference between the two cups of Uzuri Blend. Two people said that both coffees would cost the same. Another said that he would pay “an extra twenty to thirty cents for this coffee,” gesturing to the cup he said he preferred. Comments about the differences in this test included: “one is more acidic and seems nicer,” “one is a darker roast, but they’re both good,” “smoother, richer,” and “stronger.” The most emphatic supporter of one of the cups claimed that “Coffee Y is lighter, and Coffee X is more complex, and is a richer bean. X is definitely more expensive.”
Throughout the entirety of both tests, there were some repeating trends. Every person who mentioned a stronger coffee always preferred that one. A participant stated that one of his cups, which had the expensive Arabian Mocha Sanani, was weaker, and as a result, he would pay 50 cents extra for the Uzuri solely because it was stronger. A common difference in the control test between two cups of the Uzuri was that one cup tasted more acidic than the other, with three of the nine reporting this claim.
Reflection:
The findings reveal two pieces of information about how consumers value and judge their products. First, the actual study with the two different coffees showed that, in general, people preferred the more expensive product for a variety of reasons: stronger and bolder was preferred. The test subjects were also clearly able to tell correctly which product was higher quality. In terms of coffee, people tend to prefer the stronger drink, even if the bean is less expensive.
Second, the control test showed that people wanted to believe that one coffee was nicer than the other because it was more expensive, so their knowledge clearly influenced their taste. They were told that they had two different blends, so their belief created a difference. This belief that customers have based on their knowledge of price could be exploited by advertisers if they were to put the exact same product in two different packages with a different price tag on them. The customer, thinking that the products were different because of the pricing, would create a difference in the taste or quality of the product. Advertisers might be doing that now, but as a consumer, there’s no way to tell without buying each product and comparing it to a separate product, and that would still be profitable for the company because they just sold two products. For example, how much different is one brand of soda than the other? The more expensive one does not always taste the best.
From this study, I have learned that a consumer should buy the products that they prefer, and not always assume that higher expense means higher quality. In my research, I did not tell people which one of the coffees, A or B, was more expensive. If I were to do another study, I would tell people which cup cost more, to see if the results became even more lopsided in favor of the expensive one. I would test this theory on more products, like pretzels, sodas, and cheeses, which are all commonly consumed foods.
An area of possible error in my test was the fact that all of my taste testers worked for my mom. The test was conducted in her office, and her employees have a certain amount of trust in her, so they may not have been as skeptical of the two coffees as they might have been if this test was conducted out on the street, like Kimmel’s test was.
Works Cited
"Coffee Drinking Statistics." Statistic Brain RSS. N.p., 31 July 2012. Web. 03 Jan. 2013. <http://www.statisticbrain.com/coffee-drinking-statistics/>.
"The History Of Coffee." National Coffee Association USA. N.p., n.d. Web. 03 Jan. 2013. <http://www.ncausa.org/i4a/pages/index.cfm?pageid=68>.
Kimmel, Jimmy. "New $7 Cup of Coffee at Starbucks." Jimmy Kimmel Live. ABC. Hollywood, 28 Nov. 2012. YouTube. Google, 28 Nov. 2012. Web. 3 Jan. 2013.
Sanburn, Josh. "The $7 Cup of Starbucks: A Logical Extension of the Coffee Chain's Long-Term Strategy." Business & Money. TIME Magazine, 30 Nov. 2012. Web. 03 Jan. 2013.
22 Employees in My Mom's Department. "Coffee Taste Test." Personal interview. 4 Jan. 2013.
Visit to Peet’s Coffee and Tea. 1343 Locust Street, Walnut Creek, CA. 7:00 p.m. 2 Jan. 2013.
Visit to Blue Bottle Coffee. Ferry Building Marketplace, San Francisco, CA. 8:30 a.m. 3 Jan. 2013.
This is a report from December, during the media studies portion of the class. I really liked this assignment because it was so open; the only criteria was something media related. I conducted my own research about something that I really enjoy: coffee. The project itself is creative, however, the writing is mainly informative. I learned a lot from this project because it is about something that I was interested in, rather than a topic forced upon me, like many research reports in other classes are.