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Abstract
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Purpose The purpose of this paper is to explore the effect of the product attribute beliefs of
ready-to-drink (RTD) coffee beverages (i.e. content sensory, packaging and branding, and content
functional attributes) on perceived value (i.e. utilitarian and hedonic value) and repurchase intention.
Design/methodology/approach In the study survey, 401 participants who had purchased RTD
coffee beverages within the previous month were included. Structural equation modelling was
employed to analyse the survey data.
Findings The findings indicate that consumers of RTD coffee beverages form utilitarian and
hedonic value perceptions through content sensory, packaging and branding, and content
functional attribute beliefs. Furthermore, utilitarian value is one of the most crucial determinants of
repurchase intentions. The findings further reveal that whereas content functional attribute beliefs
have a dominant influence on utilitarian value, content sensory attribute beliefs have a greater
influence on hedonic value.
Originality/value The findings of this study can serve as a reference for RTD coffee beverage
companies to develop new products and communication strategies.
Keywords Repurchase intention, Perceived hedonic value, Perceived utilitarian value,
Product attribute beliefs, Ready-to-drink coffee beverage
Paper type Research paper
Introduction
Beverages are consumed by people for the purposes of health and pleasure (Agrawal
et al., 2013). After water, coffee is one of the most popular beverages in the world
(Gaascht et al., 2015). The coffee market, which had a gross value of approximately US
$173.4 billion in 2012 (International Coffee Organisation, 2014), is the worlds second
most valuable commodity market after crude oil (Murray, 2009). The coffee market is a
crucial segment for the food and beverage industry, and coffee consumption has been
increasing consumption levels worldwide (Carvalho et al., 2016). Because the amount of
global coffee consumption has steadily increased annually (Chen and Lee, 2015) and the
global coffee market has become increasingly competitive (Chinappa and Rajashekar,
2012), understanding coffee consumers consumption behaviours is critical.
Previous studies have acknowledged the importance of understanding consumer
responses to food products (Mahon and Cowan, 2004; Silayoi and Speece, 2004); greater
understanding of consumers food shopping behaviours may assist food companies in
predicting consumer behaviour and formulating marketing strategies that are efficient
and effective. Therefore, scholars have focussed on investigating consumer behaviour British Food Journal
towards coffee beverages. For example, some studies have explored the effect of Vol. 118 No. 12, 2016
pp. 2963-2980
consumer characteristics (i.e. culture, gender, and health status) on coffee drinking Emerald Group Publishing Limited
0007-070X
(e.g. Aguirre, 2016). Other researchers have focussed on the factors influencing coffee DOI 10.1108/BFJ-03-2016-0128
BFJ store consumers (Lee and Yeu, 2010; Walz et al., 2012; Huang et al., 2014), fair trade
118,12 coffee consumers (Cailleba and Casteran, 2009; Schollenberg, 2012), and commercial
filter coffee consumers (Carvalho et al., 2016). Other previous studies have investigated
the effect of the marketing communications mix on coffee consumer behaviour,
finding that product attributes have a positive relationship with customer retention
(e.g. Chelliah et al., 2013). Because of the growing trend in convenient beverage
2964 consumption, the market for ready-to-drink (RTD) beverages, which comprises
bottled, canned, and polyethylene terephthalate packaged beverages, has grown
steadily globally (Shinozaki and Harada, 2014). Although empirical studies
research has evidenced the crucial effect of coffee product attributes on customer
retention (Chelliah et al., 2013), little attention has been paid to consumer behaviour
towards RTD coffee beverages.
One of the most critical factors determining consumer purchasing behaviour is
consumer-perceived value (Gupta et al., 2009; Chen and Sun, 2014). Perceived value can
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be used to predict consumer behaviour, and industries can employ perceived value to
achieve a sustainable competitive advantage (Cronin et al., 2000; Chen and Dubinsky,
2003). Previous studies have also indicated that product attributes serve as value cues
(Gould-Williams, 1999). In other words, product attributes have a crucial influence
consumer-perceived value (Chen and Hu, 2010). Therefore, researchers have suggested
that marketers must determine why consumers purchase certain products by
categorising product attributes by perceived product value (Feng et al., 2014). However,
few previous studies have investigated the effect of product attribute evaluations on
the perceived value of RTD coffee beverages. Despite popular interest, few studies have
investigated which product attributes of RTD coffee beverages affect consumer value
perception. Therefore, the present study investigated three product attributes, namely,
content sensory, packaging and branding, and content functional attributes, to
determine whether and how these attributes influence consumer-perceived value
towards RTD coffee beverages. Moreover, previous studies have suggested that
perceived value could investigate from the perspective of utilitarian and hedonic value
(Babin et al., 1994; Hung et al., 2010). Utilitarian value and hedonic value have different
effects on consumer behaviour (Chaudhuri and Holbrook, 2001). Thus, the present
study explored how the product attributes of RTD coffee beverages affect
consumer-perceived utilitarian and hedonic value. In addition, although a previous
study suggested that not all product attributes are critical for consumers (Becker, 2000),
the current study further investigated the dominant effect of RTD coffee beverage
attribute beliefs on perceived value. Another researcher suggested that managers must
discern which critical product attributes determine consumers value perceptions
(Mohn, 1995). The findings herein may provide useful information for RTD coffee
beverage companies regarding product research and development.
Literature review
Product attributes or cues have been dichotomised as intrinsic-extrinsic attributes
(Olson and Jacoby, 1972; Olson, 1977). Intrinsic product attributes are related to the
physical composition of a product and product consistency (Field et al., 2012). Intrinsic
product attributes represent product-related attributes that cannot be changed or
manipulated without altering the physical product itself (Mndez et al., 2011; Chamhuri
and Batt, 2015). Intrinsic product attributes can also be used to measure product
nutrition, functionality, and performance (Field et al., 2012; Feng et al., 2014). According
to the aforementioned studies, the current study classified intrinsic product attributes
into two types: content sensory attributes (e.g. taste, sugariness, and homogeneity), and Effect of
content functional attributes (e.g. ingredients, thirst-quenching ability, and calorie product
content). By contrast, extrinsic product attributes, are related to physical products but
do not include the properties of the products themselves (Bernus et al., 2003; Field
attribute
et al., 2012). Thus, extrinsic attributes are product-related attributes that are not part of
the physical product itself (Mndez et al., 2011) such as the brand name, packaging
colour, and serving size (Bernus et al., 2003). Thus, in the current study, extrinsic 2965
product attributes focussed on packaging (e.g. colour, size, and graphics) and brand
attributes (e.g. memorable and well known). Consumers tend to consider both intrinsic
and extrinsic product attributes when evaluating product quality (Chao and Rajendran,
1993; Mndez et al., 2011; Kelley et al., 2015). A previous study suggested that when
relevant intrinsic attributes of a product are unavailable, consumers tend to rely on the
products extrinsic attributes (Arboretti and Bordignon, 2016). There is evidence that
consumers more easily recognise and interpret extrinsic attributes than intrinsic
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attributes (Mndez et al., 2011). Becker (2000) suggested that consumers rely heavily on
extrinsic cues for quality selection and that such cues are the dominant means of
informing consumers on the reliability of quality attributes.
Previous studies have shown that intrinsic and extrinsic product attributes
influence perceived risk (Espejel et al., 2009), satisfaction (Espejel et al., 2007, 2009),
trust (Espejel et al., 2009), loyalty (Fandos and Flavin, 2006; Espejel et al., 2007,
2009), brand equity (Sanyal and Datta, 2011), and purchase intentions (Fandos and
Flavin, 2006) in the context of the protected designation of origin of food product
(Fandos and Flavin, 2006; Espejel et al., 2007, 2009) and generic drugs (Sanyal and
Datta, 2011). Some researchers have also indicated that intrinsic and extrinsic product
attributes affect consumer value perceptions towards high-technology products
(Munnukka and Jrvi, 2012). In that study, consumer-perceived value was measured
using a single construct focussing on perceived value for money, but this failed to fully
explain, or clarify what consumers perceive when evaluating product value.
Perceived value can be divided into utilitarian value and hedonic value (Hung et al.,
2010). Utilitarian value refers to practical and rational evaluations (Chaudhuri and
Holbrook, 2001) and is defined as an overall assessment of value incorporating quality,
convenience, and value-for-money characteristics (Chen and Hu, 2010). However, previous
studies have indicated that utilitarian value is similar to the traditional value construct,
because it depicts the value for money (Chen and Hu, 2010; Chang, 2015). In the present
study, utilitarian value perceptions were therefore considered as price-related, pertaining to
consumer value perceptions of price reasonableness (Lee and Overby, 2004). Utilitarian
value is rooted in instrumental functionality of a food product such as low price (Maehle
et al., 2015). Hu and Chuang (2012) suggested that utilitarian value is related to perceived
monetary value. In other words, utilitarian value is related to a products monetary value
(Chen and Dubinsky, 2003) in determining whether a price is acceptable (Dodds et al., 1991).
By contrast, hedonic value is based on sensory experiences or emotional gratification
related to product consumption (Lee and Goudeau, 2014). Hedonic value is based on the
positive emotional response consumers experience when using a product (Lin and Lu,
2015). Hedonic value perceptions reflect the experiential side of shopping, and are related to
consumer-perceived fun, playfulness, pleasure, and fantasy (Scarpi, 2006). Thus, hedonic
value perceptions concern the potential pleasure that can be derived by using products
(Chaudhuri and Holbrook, 2001; Park, 2004; Song et al., 2012). Utilitarian value can be
conceptualised as price cognition and hedonic value reflects consumers positive affect
response associated with product consumption.
BFJ Hypothesis development
118,12 Effect of the taste attribute beliefs of RTD coffee beverages on consumer-perceived
utilitarian and hedonic value
Content sensory attributes include taste, sugariness, and homogeneity (Sorenson and
Bogue, 2006; Lee and Liao, 2009; Mndez et al., 2011; Routray and Mishra, 2012).
Utilitarian value is defined as the value of a products economic qualities (Park, 2004).
2966 Researchers have indicated that utilitarian value is related to price reasonableness
(Lee and Overby, 2004). Previous studies have indicated that sensory attributes
correlate positively with consumer price expectations (Tomlins et al., 2007; Wang et al.,
2016) and are the dominant determinants of whether the price of wine is perceived as
reasonable (Thrane, 2009). In addition, researchers have suggested that the price that
consumers are willing to pay for food is based on their judgement of the taste
(Rolfe et al., 2006). Researchers have further suggested that gustatory attributes
are among the factors affecting price acceptability (Lecocq and Visser, 2006). Therefore,
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Effect of the packaging and branding attribute beliefs of RTD coffee beverages on
consumer-perceived utilitarian and hedonic value
Consumer food preferences are strongly influenced by packaging (Mueller Loose and
Szolnoki, 2012). Packaging and branding attributes include capacity, colour, shape,
typography, and brand name (Sorenson and Bogue, 2006; Lee and Liao, 2009;
Mndez et al., 2011; Wang, 2013). Previous studies have suggested that packaging
affects consumer evaluations and price expectations (van Rompay et al., 2012).
In addition, consumer internal reference price is influenced by a products brand name
(Grewal et al., 1998).
Product packaging and branding conveys the functional, symbolic, and experiential
benefits of products and is one of the most powerful elements in the marketing
communications mix concerning customer satisfaction (Chen, 2014). In other words,
packaging could have emotional value for consumers (Grundey, 2010). Products that
provide consumers with a sense of pleasure are likely to benefit from packaging that is
perceived as attractive (Underwood, 2003). Drawing on this reasoning, the following
hypotheses were proposed:
H3. The packaging and branding attribute beliefs of RTD coffee beverages have a
positive effect on consumer-perceived utilitarian value.
H4. The packaging and branding attribute beliefs of RTD coffee beverages have a
positive effect on consumer-perceived hedonic value.
Effect of the content functional attribute beliefs of RTD coffee beverages on consumer- Effect of
perceived utilitarian and hedonic value product
The content functional attributes of RTD coffee beverages include ingredients,
thirst-quenching ability, oil reduction ability, calorie content, and nutrition (Sorenson
attribute
and Bogue, 2006; Lee and Liao, 2009). Perceived utilitarian value is determined through
evaluating products according to their functional characteristics (Park, 2004; Chuang
et al., 2013). The functional characteristics of beverages, such as their oil reduction 2967
ability and nutrition, may enhance their consumer-perceived utilitarian value. Previous
study has indicated that the perceived functional attributes of food products enhance
their image among consumers and affirm consumers willingness to pay a reasonable
price premium (Krystallis and Chrysochou, 2012). Researchers have suggested that
product ingredients affect consumer price perceptions (McCarthy and Norris, 1999).
Moreover, pleasure is strongly associated with health indicators (Lima et al., 2012).
Because pleasure is also associated with satiation of thirst and the refreshing effect of
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Effect of the utilitarian and hedonic value of RTD coffee beverages on consumer
repurchase intention
Repurchase intention refers to consumer willingness to repurchase a particular product
in the future (Fang et al., 2011; Lin et al., 2011). Previous studies have shown that
perceived value significantly influences behavioural intention (Dodds et al., 1991;
Chi et al., 2011; Chang and Tseng, 2013). Other previous studies have suggested that
consumer utilitarian and hedonic value perceptions affect consumers behavioural
intentions (To et al., 2007; Chen and Tsai, 2010; Topaloglu, 2012; Chiu et al., 2014).
Chiu et al. (2014) further indicated that consumer repurchase intentions can be
predicted according to consumer utilitarian and hedonic value perceptions. Therefore,
the following hypotheses were proposed:
H7. Utilitarian value has a positive effect on consumer repurchase intention.
H8. Hedonic value has a positive effect on consumer repurchase intention.
Drawn from this literature review and logical reasoning, Figure 1 shows the research
framework used in this study. The conceptual model reflects the anticipated
relationships among the three product attribute (i.e. content sensory, packaging and
branding, and content functional attributes) beliefs of RTD coffee beverages, perceived
value (i.e. utilitarian and hedonic value), and repurchase intention.
Research methodology
Sample and data collection
Survey questionnaires were distributed at train stations in Taiwan; data were collected
through a self-reported questionnaire. The research conducted in Taiwan because RTD
coffee has the second largest market share in Taiwans RTD beverage market, only
slightly behind bottled water (Su, 2007). Participants were selected through
convenience sampling by approaching people passing several designated locations
BFJ
118,12
1
Content
sensory H1
attribute beliefs
2968 H2 1
Utilitarian H7
value
H3
2
Packaging and 3
branding attribute Repurchase
beliefs intention
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H4
2 H8
H5 Hedonic
value
3
Content functional H6
attribute beliefs
Figure 1.
Research model
inside train stations. The convenience sampling approach was adopted because of the
difficulty of using probability sampling techniques in public locations. In addition,
although convenience sampling might not be strictly representative of the population,
it may nonetheless be free of any systematic bias (Cui and Adams, 2002).
The convenience sampling approach is therefore an efficient and acceptable
sampling method to adopt for the context of the current study (Carlson and OCass,
2010; Bizri, 2014). Potential participants were approached individually and asked to
participate in an academic study on decision making for RTD coffee beverages. If they
agreed to participate, a filter question (i.e. have you consumed RTD coffee beverages
within the previous month?) was asked to exclude participants who did not belong to
the target sample. Then, participants were asked to provide answers based on their
evaluations of the RTD coffee beverages that they had most recently consumed.
Information on the RTD coffee beverages (i.e. manufacturer brands, product brands,
and flavour) was also collected. Approximately 760 consumers participated in the
interviews; 347 were excluded because they either provided incomplete answers or had
not purchased RTD coffee beverages within the previous month. Thus, 413
questionnaires were collected. After invalid questionnaires were discarded, a total of
401 valid questionnaires remained. Among the participants, 58.1 per cent were women.
Most of the participants were 20-29 years old (58.1 per cent), whereas 28.4 per cent were
aged younger than 20 years, and 8.7 per cent were aged 30-39 years.
to assess the measurement items. The structural equation model was then analysed to test
the proposed research model and hypotheses. Table I provides an overview of the research
constructs, the associated measurement items, and the estimates of the measurement
model. Confirmatory factor analysis was performed to examine the robustness of all the
items. To assess the convergent validity of all the constructs, standardised coefficients for
each latent variable were evaluated. The coefficients are indicators of the extent to which
the latent variables are measured by the observed variables. As shown in Table I, all the
standardised coefficients were higher than 0.5 and reached the level of statistical
significance (tW1.96) recommended by Martnez and Pina (2010), thus confirming the
convergent validity. Composite reliability (CR) and average variance extracted (AVE) were
calculated for the reliability test. CR indicates whether the items in a measure are a reliable
measurement of the overall construct, whereas AVE indicates how much of the total
variance of the measure items is explained by their respective construct. According to Peng
et al. (2014), CR values should be higher than 0.7, and AVE values should be higher than
0.5. When all the constructs exceed these minimum thresholds, the measurement items are
considered to have a high degree of reliability. AVE can also be used to evaluate
discriminant validity. According to Garcia and Kandemir (2006), discriminant validity is
achieved when the squared correlation of a given construct measure with all the other
construct measures in the model must be less than the AVE of the measure of each
construct. The results obtained in the present study showed that the scales reached the
aforementioned recommended levels (see Tables I and II), indicating that the measurement
items exhibited high discriminant validity.
BFJ
2970
118,12
Table II.
scales of the
Summary of the
research constructs
CR AVE
Research constructs Measurement items t-values Mean SD values values
Content sensory attribute The RTD coffee beverage has a pleasant flavour 0.82 19.33 5.08 1.13 0.89 0.63
beliefs The sugariness of the RTD coffee beverage is not excessive 0.74 16.73 4.59 1.42
The taste of the RTD coffee beverages is consistent 0.87 21.33 5.06 1.21
RTD coffee beverages have a pleasant aroma 0.78 17.96 5.30 1.07
The colour of the RTD coffee beverage appears the same as freshly made coffee 0.75 17.09 5.17 1.08
Packaging and branding The colour of the RTD coffee beverage packaging is appealing 0.81 18.98 5.32 1.19 0.89 0.50
attribute beliefs The packaging of the RTD coffee beverage is creatively designed 0.80 18.58 5.12 1.27
The serving size of the RTD coffee beverage is sufficient 0.57 12.04 5.09 1.25
The RTD coffee beverage is easy to carry 0.63 13.51 5.44 1.21
The packaging material of the RTD coffee beverage is textured 0.78 18.18 4.87 1.29
The graphics on the packaging of the RTD coffee beverage are interesting 0.78 18.06 4.86 1.25
The brand name of the RTD coffee beverage is memorable 0.60 12.60 5.16 1.15
The brand of the RTD coffee beverage is well known 0.61 12.84 5.46 1.08
Content functional The ingredients of the RTD coffee beverage are appropriate 0.67 14.37 4.27 1.27 0.88 0.60
attribute beliefs The RTD coffee beverage has thirst-quenching properties 0.77 17.46 3.51 1.35
The RTD coffee beverage has oil reduction properties 0.81 18.76 3.36 1.39
The calorie content of the RTD coffee beverage is suitable 0.81 18.80 3.66 1.34
The RTD coffee beverage has nutritious properties 0.78 17.77 3.35 1.39
Perceived utilitarian value All things considered equal, the RTD coffee beverage is very good value 0.84 20.46 4.51 1.20 0.92 0.81
The RTD coffee beverage is worth the money I pay for it 0.95 25.50 4.55 1.30
I benefit from drinking the RTD coffee beverage 0.90 22.78 4.39 1.33
Perceived hedonic value Drinking the RTD coffee beverage is fun 0.87 21.68 4.46 1.32 0.95 0.82
Drinking the RTD coffee beverage is a joy to me 0.94 25.01 4.45 1.30
Drinking the RTD coffee beverage is enjoyable 0.94 25.01 4.49 1.30
Drinking the RTD coffee beverage is very entertaining 0.88 22.05 4.22 1.26
Repurchase intention The likelihood that I would repurchase the RTD coffee beverage is very high 0.96 25.97 4.87 1.34 0.97 0.91
The likelihood that I will consider repurchasing the RTD coffee beverage is
very high 0.97 26.37 4.87 1.33
My willingness to repurchase the RTD coffee beverage is very high 0.94 24.98 4.87 1.33
branding, and content functional attributes) being used as independent variables, other Effect of
product characteristics considered to affect customer-perceived utilitarian and hedonic product
value, such as manufacturer brand, product brand, and flavour, were included in the
model as control variables. Before the path coefficients of the research model
attribute
were analysed, various statistical measures were employed to test the goodness-of-fit of
the model to the data. All the overall model indices (12/df 1,279.50/426 3.0; root
mean square error of approximation 0.071; normed fit index 0.95; nonnormed fit 2971
index 0.96; comparative fit index 0.97; incremental fit index 0.97; goodness-of-fit
index 0.83; adjusted goodness-of-fit index 0.80) indicated that the proposed model
achieved a good fit.
Regarding the assessment of all hypotheses, Table III shows that all hypotheses
were supported. For H1, H2, H5, H6, and H7, p o 0.001; for H4, p o 0.01; for H3,
p o 0.05. The results indicated that the three product attribute beliefs (i.e. content
sensory, packaging and branding, and content functional attributes) influenced
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Additional analysis of the dominant effect of RTD coffee beverage attribute beliefs on
perceived value
To examine the influences of the three product attribute beliefs on customer
perceptions of utilitarian and hedonic value, a stepwise multiple regression analysis
was conducted. In the stepwise procedure, the three product attribute beliefs included
in the model. The stepwise procedure was used to examine the significance of product
attribute beliefs and produce a series of increasingly explanatory models with variables
entered on the basis of their ability to improve the model (Duren et al., 2006). The order
in which the variables were entered was determined according to the partial correlation
coefficients, which measure the importance of variables not yet in the model (Williams,
2005). Thus, the stepwise procedure enables the assessment of the differential effects of
of the RTD coffee beverage are appropriate was the most dominant factor in forming
utilitarian value perceptions, explaining 20 per cent of the variance in perceived
utilitarian value.
Then, this study examined which product attribute beliefs of RTD coffee beverages
had a dominant influence on perceived hedonic value. The stepwise procedures resulted
in three further models. The first model incorporated content sensory attribute beliefs,
accounting for approximately 24 per cent of the variance in perceived hedonic value. The
second model, regarding content functional attribute beliefs, explained 29 per cent of the
variance. The third model incorporated packaging and branding attribute beliefs,
explaining 31 per cent of the variance. These results indicated that content sensory
attribute beliefs influenced perceived hedonic value ( 0.26, po0.001) to a greater
degree than did content functional attributes ( 0.23, po0.001) and packaging and
branding attributes ( 0.22, po0.001). The content sensory attribute belief the RTD
coffee beverage has a pleasant flavour was the most dominant factor in forming hedonic
value perceptions among all 18 product attributes, explaining 21.9 per cent of the
variance in perceived utilitarian value.
Discussion
This paper presents insights into RTD coffee beverages and provides evidence that
product attribute beliefs affect consumer-perceived value. This paper further evidences
the relationships among the product attribute beliefs of RTD coffee beverages
(i.e. content sensory, packaging and branding, and content functional attributes),
consumer-perceived utilitarian and hedonic value, and consumer repurchase intentions.
The findings show that content sensory, packaging and branding, and content
functional attribute beliefs affect consumer utilitarian and hedonic value perceptions,
which in turn determine consumer repurchase intentions. In addition, whereas content
functional attribute beliefs have a dominant effect on consumer-perceived utilitarian
value, content sensory attribute beliefs are more crucial in the formation of consumer-
perceived hedonic value.
addition, food choice is generally influenced by social interactions and the physical
environment (Altintzoglou et al., 2016). Therefore, individual characteristics and
conditional factors can be included in the proposed hypotheses as moderators.
Fourth, because this study adopted content sensory, packaging and branding, and
content functional attributes to examine product attributes, future studies might benefit
from exploring a more diverse range of product attributes. For instance, previous studies
(e.g. Mueller et al., 2010), proposed two types of product attribute: visual and verbal
packaging attributes. Because research on the downstream effects of different types of
product attributes is lacking, a more thorough investigation of the various types of product
attributes is needed. Further research should apply a multidimensional product attribute
model to obtain insight into how these types of product attributes influence consumer
value perceptions. Fifth, although the coffee shop market in Asia has exhibited rapid
growth, our survey focussed only on the product attributes of RTD coffee beverages.
Future research could therefore explore the product attributes of specialty coffee beverages
in high-quality coffee shops. Because of the increase in purchases of coffee beverages from
specific marketing channels, competition to retain coffee beverage consumers has
intensified; thus, it is imperative for marketers to develop a more robust understanding of
the antecedents of value creation and their influence on coffee beverage consumer
behaviour. Elucidating the influence of these factors on value perceptions and repurchase
intentions will enable coffee beverages companies to effectively address this concern.
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Corresponding author
Edward S.-T. Wang can be contacted at: shihtse.wang@msa.hinet.net
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