An investigation of factors affecting purchasing decision of premium coffee in Singapore

Abstract

This study aimed to analyze the customer purchasing decision within premium arabica coffee shops in Singapore. The sampling locations were Singapore. The population used in the study consisted of 312 valid responses from 16 coffee shops. The data was obtained by using questionnaires which consists of 17 questions according to marketing mix concepts, including four product items, three pricing items, four place items, three promotion items, and three people items. The data analysis was used the grey theory system with GM(0,n) which examines the link between model structure and discrete data to estimate the decision of an uncertain system. The results of the study revealed five factors of marketing mix were impacted customer purchasing decision significantly. The product elements weighting are 0.3527. The price elements weighting are 0.2712, the place (0.1581), the promotion (0.1296), and the people (0.0897). The study found that Singaporean focus on premium coffee beans that have a unique flavor. Especially storytelling for each country of origin where to plant premium coffee is even more interesting and gives a new experience different from instant coffee. In addition, consumers are also willing to pay for what's right for the price even premium coffee has a high price.