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American Journal of  Economics and 
Business Innovation (AJEBI)

The Relationship of  Pricing Strategies in Customer Satisfaction at Cabanglasan Coffee Shop
Chariz Mae O. Madrid1*, Wrowee C. Lumbayan1, Jehan T. Malon1, Jepaul M. Montero1, Allan V. Beliganio1

Volume 4 Issue 3, Year 2025
ISSN: 2831-5588 (Online), 2832-4862 (Print)

DOI: https://doi.org/10.54536/ajebi.v4i3.6212
https://journals.e-palli.com/home/index.php/ajebi

Article Information ABSTRACT

Received: September 26, 2025

Accepted: October 29, 2025

Published: December 17, 2025

The purpose of  this study was to assess the relationship of  pricing strategies in coffee shops 
with customer satisfaction in Cabanglasan. Specifically, it explored how the two independent 
variables of  seasonal pricing and price discounts influence customer perceptions and 
purchasing behaviors guided by the Theory of  Customer Satisfaction and the Behavioral 
Pricing Theory. A survey was administered to 292 customers of  various coffee shops in 
the study locale, and the census method was applied to determine the relation between the 
dependent and independent variables and the latter’s relationship with individual pricing 
strategies. The study design was descriptive-correlational since the key elements, such as 
the mean, standard deviation, and Pearson product-moment correlation, were employed 
to interpret the data. It was established that seasonal pricing and price discounts positively 
related to customer satisfaction, although the former is slightly more effective. The 
determining factor is that customers are likely to react if  immediate financial incentives are 
offered rather than value-based ones. Therefore, there is a robust relationship between the 
dependent and independent variables, thus emphasizing the importance of  well-structured 
pricing models for enhancing customer satisfaction. The interpretation of  these relationships 
will help coffee shop entrepreneurs score more customers and enhance customer retention 
through pricing and, consequently, increasing profitability.

Keywords
Coffee Shops, Customer Atisfaction, 
Price Discount, Pricing Strategies, 
Seasonal Pricing

1  Department of  Business Management, Bukidnon State University, Cabanglasan Campus, Philippines
* Corresponding author’s e-mail: 2203100059@sc.buksu.edu.ph

INTRODUCTION
One of  the most important business success indicators is 
customer satisfaction; this is especially true for the food 
and beverage industry. Currently, pricing in the market is a 
purely psychological factor and not just an economic one. 
Customer perception of  the price greatly influences how 
a customer will rate a product, work, or service rather than 
the quality of  the offerings. Kotler and Armstrong define 
pricing in their book Marketing Management as “the 
only source of  income for the company” that has to be 
optimum. Therefore, because pricing directly influences 
consumer buying behavior and business profitability, it 
is one of  the four components of  the marketing mix. 
However, in small and developing communities such 
as Cabanglasan, Bukidnon, the business climate and 
consumer purchasing power are fundamentally different 
from large urban centers. Hence, many customers are 
sensitive to price changes and sales promotions; business 
owners, including coffee shop managers, must develop 
pricing plans to appeal to customers while maintaining 
profitability. Coffee houses are increasingly popular 
places to relax, work, or catch up with friends. The 
increasing competition among local coffee house owners 
should also necessitate the creative use of  marketing, as 
well as major pricing strategies. Likewise, pricing is a lot 
more than just a sum and holds perceived value. Because 
pricing is value, it should create the desired effect.
According to Lee, common attitudes to pricing are 
seasonal pricing and price discounts. Seasonal pricing 
is one of  the possibilities for adjustment at the time of  

the year, which can be related to the time of  the year, 
special days, or other events that affect the demand. 
When the prices are higher, customers are likely to feel 
that the product is special or has only to be chosen for a 
limited period. On the contrary, price discounts are the 
best method to provide immediate monetary benefits 
and stimulate repeat purchases. Several authors underline 
that consumer satisfaction depends on the perspective of  
this tactic. Handling properly and explaining the prices’ 
fairness with the quality of  the goods, the customers 
are more loyal to recommend the shop to others and 
deprive switch shops. If  the goods’ prices are higher 
and the quality is inferior to the expectations, consumer 
satisfaction decreases. Seasonal pricing implies that prices 
fluctuate during the year’s changes or important events. 
For example, unpopular brands of  coffee shops often 
lower the prices of  the drinks on the rainy days. There 
is solid evidence that consumers feel attracted by the 
promotions and discounts due to the altered perspective 
on getting a better product . Price discounts are multiple 
practices that the shop implements in the prices. For 
example, some coffee shops’ specialists set the price to 
39 pesos instead of  40 pesos for the drink. This trick 
changes consumers’ perspective on feeling like they 
pay less while, in reality, the prices are almost the same. 
Similarly, most loyalty programs implement discounts or 
the possibility to check a cup after ten drinks for free. 
This alters the perspective of  consumers who feel lucky 
for being rewarded for the actions and encouraged to buy 
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Most of  the existing studies of  pricing strategies and 
customer satisfaction have focused on urban commercial 
coffee shops. Yet, rural coffee shops such as those in 
cabalangasan have different customer behaviours and 
market conditions. Particularly in small towns such as 
cabalangasan, purchasing decisions may be determined 
by local income levels, community ties, and cultural 
preferences. On that account, there has been less research 
covering how seasonal pricing and discount strategies 
influence customer satisfaction. As a result, because it 
provides knowledge on how local customers respond to 
these strategies, the present research can help small coffee 
shop owners develop effective pricing strategies that will 
lead to satisfied customers and sustainable businesses.

LITERATURE REVIEW
Theory of  Customer Satisfaction
The study is established on the framework of  Richard 
Oliver which views satisfaction as a differentiation 
between expectation and ensuing performance. In the 
context of  a coffee shop industry, the expectation rests 
on a fair charge by price, taste, and excellent quality. The 
effect is that when the shop or stall realizes the customers’ 
expectation on the low price, less than 15% pricing, and 
continues to offer them at the same price due to unit cost 
strategies they will repeat purchases or recommend to 
their friends. As Puranik and Bansal noted, fair pricing 
significantly influences customers’ loyalty and satisfaction. 
The theory supports the idea that pricing is highly critical 
in determining customers’ satisfaction after purchase. 
The theory adds that satisfaction is a cognitive and 
emotional concept. It denotes the feeling after purchase 
and the subsequent thought of  the value associated with 
the product or service. It explains that customers find 
satisfaction in the product and emotionally it positively. It 
creates an emotional attachment to the cup and continuity 
in purchasing from the shop or stall. Therefore, the theory 
of  customer satisfaction helps to understand how fair 
and transparent pricing play a leading role in furthering 
business in Cabanglasan.

Behavioural Pricing Theory 
Kent Monroe’s Behavioral Pricing Theory states the 
idea that consumers’ response to the price is not 
determined only by the quantum they pay. Instead, it 
correlates to the fairness of  the price and the sensitivity 
they associate with it. The price management statement 
is valid because it reveals that the customer views any 
price reduction before, during the seasonal discount as 
well as any increase. Control of  the customer experience 
of  fairness and value is ensured by the price or price 
reduction and the increase during the season, as well as 
if  the organic product is linked to the time opportunity 
or line. On the contrary, the corporate is unreasonable; 
if  the menu is rational during the developing period and 
the outbreak period, it produces unfairness, reducing 
dispute. As a result, the Behavioral Pricing Theory has 
a psychological voicing in explaining why effective 

price management implies fair value and the purchaser 
does not optimally view trust and the fair market. In 
the case of  cabanglasan coffee shops, SWOT analysis 
affects customer experience. According to the view, the 
monopoly promotes well-being when customers believe 
that the offerings are a decent offer. Such a theory is vital 
to explain what it means for cabanglasan coffee shops 
as strategies have an impact on customer happiness. 
Pricing strategies have long been the most crucial factor 
of  consumer happiness and acquisition in the economy 
section and agriculture, making cabanglasan coffee shops 
possible. Pricing determines the advantageousness of  the 
outcome, believing that the manufacturer determines the 
performance. Potential productivity by offering excuses 
depending on a time alternative, continually attempting 
consumer taste. Dependably signal COD for physiological 
efficiency.

Pricing Strategies
As one of  the most influential determinants of  customer 
satisfaction and loyalty, pricing has a direct impact on 
consumers’ attitude toward a product or service. Indeed, 
as defined by Kotler and Keller, pricing influences both 
customer-based value and the company’s profitability: 
it is a major and one of  the most effective methods 
of  marketing that directs the message of  a product’s 
worth to consumers. In other words, while customers 
are motivated by the price tag as an objective measure 
of  the cost to purchase, they also evaluate its fairness, 
transparency, and consistency with the quality provided. 
When customers feel that the price is fair and correlates 
to the expected level of  quality, they are more likely to 
stay with a product and a seller. In their study of  the 
effect of  strategic pricing on customer satisfaction among 
Vietnamese coffee shops, Nguyen and Pham report that 
pricing transparency and fairness led to frequent repeat 
visits. In this study, “transparency creates trust and 
transparency leads to emotions”. Similarly, found in a study 
of  customer satisfaction in small cafés that price fairness 
was one of  the most important predictors of  emotional 
loyalty: customers who are emotionally rewarded by fair 
pricing policies are much more loyal and more engaged 
long-term. As for the impact of  promotional pricing, 
Suryani et al. (2022) showed that promotional pricing 
based on limited time offers and seasonal discounts 
increased satisfaction among Indonesian cafes’ visitors 
by creating excitement and time pressure on making a 
purchase. The latter is in line with the Behavioral Pricing 
Theory which claims that satisfaction depends not only 
on the price consumers pay but also on how fair they 
feel it is.
Regarding the Philippine setting, Villanueva found that 
value-based and affordable doubled with fair pricing 
were key to small coffee consumers satisfaction shops in 
Davao City. Their goods and services were preferable to 
their pricing, and the pricing levels met the value of  the 
coffee consumers. Cruz and Domingo on the other hand 
revealed that holiday’s discounts and partnerships like 



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pricing-double exhibits goals; customer-based fair pricing-
drive. conducted a local study that also showed pricing 
was a double fair to determine high satisfaction. Mabeza 
emphasized that pricing strategies should be customer-
perceptional-double centered. It has been found that 
short-term satisfaction for sales and long-term loyalty 
are driven by seasonal-pricing and promotional work. 
As pricing-promotion double revealed that pricing-based 
promotion pricing can determine customer satisfaction, 
Kotler and Armstrong exposed a promotion drive, saying 
the goal is to create a double fair price perception. “A 
fair double price it may seem double. lowered cost.” 
Mabeza, being more local, combined fair price and higher 
seasonal-friendly partnership prices for four-business-
exploration goals satisfaction studies.
In a study by Nguyen and Pham, strategic pricing was 
also found to have a high impact on customer satisfaction 
in coffee chains. Customers indicated that they liked 
visiting cafés that had clear and understandable pricing 
policies and disliked visiting shops with unclear and 
inconsistent pricing schemes. This explains the current 
study where the focus is on the effect of  pricing decisions 
on customer satisfaction and loyalty to the coffee shops 
in Cabanglasan. Another similar study to the current 
research study is the study conducted by Suryani et al. 
(2022) on the impact of  promotional pricing and product 
quality on satisfaction and repurchase intention among 
café customers in Indonesia. In this study, it was found 
that customers responded positively to discounts and 
promotions as it showed good gestures from a vendor. 
Customers reported high repurchasing intentions due 
to the discounted pricing, which is also similar to the 
current research study that is focusing on discount-
based pricing and its relationship with satisfaction among 
local customers. There is also local evidence from the 
Philippines which confirms the relationship between 
pricing and pricing. Villanueva conducted a study on small 
coffee enterprises in Davao City and found that pricing 
based on perception and affordability was a determinant 
of  repurchasing and patronizing the shop. Consumers 
prefer to buy in shops where they feel they are saving, 
as this study found out that pricing is a crucial factor in 
even the rural areas of  the countries. This determinant is 
similar to the current research location is in Cabanglasan 
where prices are influenced by pricing power because of  
the customers. 

Seasonal Pricing
Wu, Chen, and Chang suggested that seasonal pricing 
indeed contributes to customer satisfaction only when 
the latter considers price changes to be fair and driven 
by certain special events or product enhancements. 
Correspondingly, Almeida, Costa, and Ramos state that 
seasonal promotions generate excitement and encourage 
purchase intention only when they are related to the 
customer and are appropriately timed. In the Philippines, 
seasonal pricing is adapted to town fiestas, holidays, and 
other community celebrations. Small rural businesses in 

places like Cabanglasan use similar variations in pricing 
to encourage more customers. These modifications aim 
to make people feel like they are actively participating in 
celebrating the season. At the same time, too frequent or 
abrupt changes may lead to price confusion and frustrate 
people. Quintana noted that excessive price modifications 
and continuous price increase without adequate 
justification and reasoning may lead a customer to feel 
that they were ripped off. Therefore, one should also be 
cautious about adapting seasonal pricing and make sure 
that people feel more celebrated than a means to ask for 
more money.
Price discount is a powerful marketing strategy with direct 
implications for customer satisfaction and loyalty. In 
addition to introducing an element of  reward, discounts 
motivate customers for repeated purchases. Hsu found 
that time-limited discounts are particularly efficient as 
they create a sense of  urgency and push a person for 
an immediate purchase to avoid losing an opportunity. 
Known as the scarcity effect, it represents a strong 
strategy to stimulate the customer’s defensive mechanism 
and make a decision faster. Guleria wrote that discounts 
not only increase a sales volume but also achieve an 
emotional impact by making people feel that they have 
received more for the same amount of  money. Discounts 
are appealing to customers as they give them a feeling of  
appreciation and support.

Price Discounts
Price discount is a powerful marketing strategy with direct 
implications for customer satisfaction and loyalty. In 
addition to introducing an element of  reward, discounts 
motivate customers for repeated purchases. Hsu found 
that time-limited discounts are particularly efficient as 
they create a sense of  urgency and push a person for 
an immediate purchase to avoid losing an opportunity. 
Known as the scarcity effect, it represents a strong 
strategy to stimulate the customer’s defensive mechanism 
and make a decision faster. Guleria wrote that discounts 
not only increase a sales volume but also achieve an 
emotional impact by making people feel that they have 
received more for the same amount of  money. Discounts 
are appealing to customers as they give them a feeling of  
appreciation and support.
Sinha and Bansal argued that discounts are most effective 
only when they are amalgamated with consistent 
communication and service. Customers will doubt it if  
a business offers discounts regularly; they will question 
the fairness of  the regular, non-discounted pricing. 
Therefore, the success of  discounts is contingent on 
how effectively it is administered and communicated to 
customers. In a rural area coffee shop, it is common to 
encounter discounted prices to promote new products, 
clear excess stock, or reward the most loyal customers. 
For example, they can offer a “Buy One, Take One” 
during weekends on specific occasions. This creates a 
source of  short-term sales and also a means to long-term 
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Customer Satisfaction
The term customer satisfaction encompasses a customer’s 
psychological judgment that occurs after using a product 
or service. More than four decades ago, Oliver defined 
customer satisfaction as the emotional influence that 
arises after assessing the real experience with the expected 
one. If  the assessment is met or exceeded, then the 
customer is satisfied, but if  it is below the expectation, 
then the customer is dissatisfied. For businesses in the 
service and hospitality industry, customer satisfaction 
determines repeat patronage and referrals. Puranik and 
Bansal (2021) supports that pricing is a very accurate 
predictor of  satisfaction. How the customer assesses 
the cost associated with quality directly affects the rate 
of  returning and referrals. If  the assessment aligns or 
exceeded their value, the customer will be more inclined 
to come back and share with at least two uses.
However, several other factors such as service quality, 
environment, and employee behavior also affect 
customer satisfaction, although the impact is less tangible. 
According to Choudhury and Khatun (2021) “pricing with 
quality, fair pricing, and ethical pricing decisions play a 
role in building pleasant relationships and forming repeat 
customers, especially in a small community, where people 
depend upon word-of-mouth”. Meanwhile, according to 
Rahman and Iqbal, in small cafés, customer satisfaction 
level depends not only on the price level but also on 
how customers see fairness and an emotional connection 
when they receive the value with their money. Thus, the 
theoretical framework of  this paper is supported by 
Theory of  Customer Satisfaction and Behavioral Pricing 
Theory, demonstrating the role of  customer expectations 
and perceptions of  value in satisfaction and loyalty. Pricing 
Strategies’ Relationship with Customer Satisfaction. 
Seasonal pricing is the pricing strategy that aims to 
benefit from the periodical demand levels. According 
to Puranik and Bansal (2019) who explored the effect 
of  seasonal promotions such as limited-time holiday 
specials or weather-based discounted offers, seasonal 
pricing strategies can improve customer satisfaction by 
increasing impulse-buy chances for the seasonal special 
and by marking the special as limited or only available 
in this specific time. Sunitha and Gnanadhas (2019) also 
found the role of  convenience for customer satisfaction. 
They found that while price indeed is a decisive factor, 
customer satisfaction is influenced by the availability and 
speed of  service.

The Relationship of  Pricing Strategies and Customer 
Satisfaction
Seasonal pricing is the pricing strategy that aims to 
benefit from the periodical demand levels. According 
to Puranik and Bansal (2019), who explored the effect 
of  seasonal promotions such as limited-time holiday 
specials or weather-based discounted offers, seasonal 
pricing strategies can improve customer satisfaction by 
increasing impulse-buy chances for the seasonal special 
and by marking the special as limited or only available 

in this specific time. Sunitha and Gnanadhas (2019) also 
found the role of  convenience for customer satisfaction. 
They found that while price indeed is a decisive factor, 
customer satisfaction is influenced by the availability and 
speed of  service.
Another widely practiced strategy is seasonal pricing, 
which means adjusting the price according to its demand 
level during the year’s periods. Most coffee shops adjust 
prices during holidays, special events, or cold years when 
customers consume more hot drinks. Wu et al. (2021) 
reported that seasonal pricing produces a sense of  
urgency and exclusivity, which encourages consumers 
to buy products instead of  putting off  shopping. The 
sense of  FOMO in contemporary culture is strong 
enough in the coffee industry. Customers, attracted by 
the opportunity to taste a unique seasonal flavor, tend 
to choose various items. For example, during the winter 
holidays, the coffee shop raises the price of  seasonal 
drinks, which is supported by an augmented demand for 
hot beverages. As a result, customers feel the purchased 
product benefits from higher beta and purchase not only 
seasonal drinks but also a wider range of  products thus, 
increasing overall sales. The relationship between pricing 
and consumer satisfaction depends not only on its level 
but also on its correspondence with demographic factors. 
For example, Kumar and Gupta (2021) focused on tailored 
pricing, which was linked to consumer demographics and 
shown to increase customer satisfaction. Tailored pricing 
is alternated between discounts and bonuses offered in 
reopening programs. Loyalty programs make consumers 
feel special when they are encouraged to receive a discount 
or bonus after a certain number of  visits. Consequently, 
as Guleria reported, consumers who were rewarded with 
special discounts in an email report a higher level of  
loyalty after visiting again.
As a result, the study conducted by Cruz and Domingo 
(2021) resulted in a conclusion that micro coffee 
businesses in Bukidnon that practice flexible pricing in 
terms of  occasional discounts and holiday rates report 
an increase in customer engagement and retention due 
to flexible rates. Therefore, adjusting pricing models to 
consumers’ perceptions boosts the perceived satisfaction 
and sales. Thus, it is highly relevant to this study on 
examining the impact of  seasonal rates and discounts on 
consumer satisfaction in Cabanglasan.

MATERIALS AND METHODS
A quantitative descriptive-correlational research design 
was employed in the present study to investigate the 
relationship between pricing models and consumers’ 
perceived satisfaction within the coffee shops of  
Cabanglasan, Bukidnon. Such design was justified in 
order to determine how pricing models are implemented 
by the coffee shop owners to identify and understand 
and then explore their correlations with the consumers’ 
perceived levels of  satisfaction. As established by 
Creswell, descriptive-correlational design is utilized to 
describe a condition or problem and determine the 



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relationship between two or more changeable variables. 
In the current research, those variables would be found 
in the pricing models and consumers’ satisfaction level. A 
tool of  measurement in correlational research is used to 
describe relationships and makes and make a prediction. 
The total number of  respondents in the present study was 

292 consumers who visit coffee shops in Cabanglasan. 
The sampling method used in the current study is the 
total enumeration technique based on the manageable 
number of  informants. This research was conducted in 
the several coffee shops in Cabanglasan in Bukidnon that 
is a gathering place for locals and workers.

Table 1: Assessment of  the Respondent’s Pricing Strategies in Terms of  Seasonal Pricing
Pricing Strategies Mean Sd Description
1. I often purchase more products when a 

seasonal price is offered.
3.40 0.76 Very Satisfied with seasonal pricing

2. I trust the quality of  products offered 
during seasonal sales.

3.40 0.66 Very Satisfied with seasonal pricing

3. Seasonal pricing makes me feel more 
satisfied with my purchases.

3.42 0.69 Very Satisfied with seasonal pricing

4. Seasonal pricing encourages me to buy 
more.

3.47 0.65 Very Satisfied with seasonal pricing

5. Seasonal pricing provides better value for 
my money.

3.47 0.63 Very Satisfied with seasonal pricing

Mean 3.43 0.68 Very Satisfied with seasonal pricing

Table 2: Assessment of  the Respondents’ Pricing Strategies in Terms of  Price Discounts
Price Discounts Mean Sd Description
1. I often visit the coffee shop when the 

discounts are available.
3.42 0.71 Very Satisfied with Price Discounts

2. The prices in the coffee shop influence 
me to buy more.

3.49 0.59 Very Satisfied with Price Discounts

3. I feel valued when they offer discounts. 3.42 0.69 Very Satisfied with Price Discounts
4. Discounts make me choose one coffee 

shop over another.
3.55 0.58 Very Satisfied with Price Discounts

5. I recommend coffee shops that offer 
discounts.

3.50 0.59 Very Satisfied with Price Discounts

Mean 3.48 0.63 Very Satisfied with seasonal pricing

RESULTS AND DISCUSSION
Table 1 above indicates that respondents considered 
seasonal pricing positively, as shown by the total mean 
of  3.43 and standard deviation of  0.68, which is close to 
the mean, indicating that most of  the respondents held 
similar opinions. This further shows a positive correlation 
between seasonal pricing and customer satisfaction, 
meaning the assessment was delighted. The respondents’ 
best indicators were “Seasonal pricing encourages me to 
buy more” and “Seasonal pricing gives me value for my 
money,” with means of  3.47. This indicates that customers 
respond highly to adjustments to prices on a seasonal 
basis and have massive traffic in terms of  discounts 
during holidays and rainy seasons, which attracts them, as 
explained by Almeida et al. (2022). This market activity can 
bring about more purchases. Additionally, cofeeshops can 
use seasonal impressions to connect to their customers 

more on different occasions in their target market. This 
connects well with the teachings of  Almeida et al. (2022) 
who state that pricing according to the season and the 
reaction of  customers to promotions create a business 
opportunity for cofeeshops. The “Seasonal pricing makes 
me feel more satisfied with my purchases” indicator of  
M=3.42 and SD=0.69 further exemplifies the analysis 
of  the above indicator, with seasonal discounts high 
value to shopping. This creates a drift of  coming along 
with movement toward buying suggests that seasonal 
discounts provide more satisfaction.cafes in Cabanglasan 
should use movie events in welcoming Customers so that 
they may come back for shopping again. Concerning 
the indicator, “I believe that products sold in seasons 
are of  quality” brings out a mean of  3.40 indicates that 
customers feel the offering quality products at a lower 
price. The residents may then benefit on the prices.

As can be seen from Table 2, all respondents were very 
satisfied with the price discount, having an overall 3.48 
mean and a 0.63 standard deviation, which is close to the 

mean, meaning that most people share the same view 
on price discount. The highest mean is that the discount 
makes me choose one coffee shop than the other, having 



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a 3.55 average. This indicates that the price discount 
greatly impacts customer preference and behaviour. 
Providing competitive price discounts allows a particular 
coffee shop to become more attractive and places one 
higher on customers’ priority list. This coincides with 
the study by Sinha & Bansal, who found discounts to 
be effective, push products bought impulsively, and urge 
more customers to shop at the store by pushing shopping 
volume. That is, the discount makes it attractive for the 
customer to choose one’s coffee shop than the other. 

The third-highest is that I will recommend a coffee 
shop that offers a discount, having a 3.50 mean and 0.59 
standard deviation. It is evident that if  I feel satisfied 
with the transaction with one particular coffee shop, I 
will recommend it to my friends who have been into 
coffee shops. Thus for the manager of  a coffee shop, 
knowing the behaviour of  the consumers toward price 
discount is essential. Although the price discount is 
effective in attracting new consumers, it is effective in 
retaining too.

Table 3: Assessment of  the Respondents on Customer Satisfaction
Customer Satisfaction Mean Sd Description
1. I am satisfied with the pricing of  the coffee 

shop.
3.26 0.74 Very Satisfied with Customer Satisfaction

2. I often feel pleased with my purchases at the 
coffee shop due to the favorable pricing

3.44 1.25 Very Satisfied with Customer Satisfaction

3. Discounts contribute positively to my 
experience.

3.22 0.71 Satisfied with Customer Satisfaction

4. The pricing strategies of  the coffee shop 
meet my expectations.

3.30 0.73 Very Satisfied with Customer Satisfaction

5. I enjoy buying at the coffee shop when 
discounts are available.

3.33 0.68 Very Satisfied with Customer Satisfaction

6. I find that price affects my selection of  
products at the coffee shop

3.46 0.63 Very Satisfied with Customer Satisfaction

7. I have a wide variety of  options due to 
competitive pricing.

3.32 0.70 Very Satisfied with Customer Satisfaction

8. I consider the overall value, including price 
and quality, when selecting products.

3.42 0.60 Very Satisfied with Customer Satisfaction

Mean 3.48 0.63 Very Satisfied with Customer Satisfaction

shown in Table 3, customer satisfaction obtained an 
average of  3.48 and a standard deviation of  0.63. This 
implies that, with few disparities in the consumers’ point 
of  view, many feelings are comparable in terms of  how 
pricing contributes to their level of  satisfaction. As such, 
there was an extremely high proportion of  satisfaction 
among the respondents. The most rated item was “Price 
affects my choice of  the products in coffee shops” with 
an average of  3.46 and a standard deviation of  0.63. This 
item indicates that purchasing decisions are influenced 
by how the pricing is done. In this case, it means that 
consumers are likely to purchase the products when they 
feel that the value of  the prices is rational and on the 
lower ranges. This correlates with the prioritization of  the 
customer satisfaction theory that stipulated customers’ 
satisfaction distortion. The second item was “I am often 
happy with the products I buy in coffee shops because of  
the pricing” with a mean of  3.44 and a standard deviation 
of  0.63. These two indicated that the pricing makes 
consumers happy to purchase them, especially when they 
are satisfied with their value. This is an implication of  

an incorporated satisfaction strategy in which the method 
makes consumers happy. The third item mean was 
“The overall product value is something I use to decide 
whether to buy a product including the price” at 3.42 with 
no standard deviation provided. Notably, “Discounts on 
products enhance my taste” had the second-lowest average 
of  3.22. The best-situated tem mean was “I often feel 
pleased buying at coffee shops due to favourable pricing” 
had a large standard deviation of  1.25. Most notably, the 
lowest item mean was “I enjoy buying at coffee shops 
where discounts are available” since it averaged 3.33 on a 
5-point moderate and outstanding scale. The fourth item 
place mean was “A broad selection of  options from which 
I can compare prices” at 3.32. From the results, I can 
conclude that effective pricing strategies, such as value-
added pricing play a critical role in customer satisfaction 
in coffee shops. Therefore, coffee shop managers in 
Cabanglasan need to focus on implementing value-driven 
pricing strategy. This can be achieved through discounts 
and other value-added strategies to create customer 
satisfaction and repeat purchases.

Table 4: Correlation Coefficient of  the Pricing Strategies and Customer Satisfaction
Correlation coefficient P-Value Degree Remarks
0.738 0.064 High Significant



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Am. J. Econ. Bus. Innov. 4(3) 205-212, 2025

Table 4 illustrates the correlation analysis of  the 
relationship between pricing strategies and customer 
satisfaction. Correlation analysis of  the relationship 
between pricing strategies and customer satisfaction is 
presented in Table 4. As soon the table indicates, the 
correlations between the pricing strategies and customer 
satisfaction are strong and positive. In fact, correlation 
coefficient of  0.738 in correlation analysis means 
that pricing strategies and customer satisfaction have 
high degree of  association. This way, when customer 
satisfaction is high, pricing strategies also do the same. 
In addition, the P-value of  this correlation, there is a 
significant difference between P=0.064 > 0.05. In such 
a way, the extremely low P-value leads to rejection of  the 
null hypothesis, therefore, there is enough evidence to say 
that there is a correlation and it is significant meaning 
there in no random chance. According to Smith and Lee 
: “A low p-value provides strong evidence against H0 that 
two variables are truly not connected”. Thus, it may be 
said that pricing strategies do play a role when it comes 
to impact on customer satisfaction and businesses should 
carefully plan and research their pricing. However, it does 
not necessarily mean a direct cause and effect relationship 
as Johnson explains that there are many variables that may 
also factor in as a cause of  satisfaction. Another factor 
would be a certain macroeconomic environment that 
plays a role in how people spend and use their money. 
Therefore, a pricing strategy should always leave room 
for flexibility and customers’ needs and expectations.

CONCLUSION
This study aimed to investigate the effects of  pricing 
strategies to customer satisfaction. The results showed 
that both seasonal pricing and price discounts significantly 
affect customer satisfaction. The respondents claimed 
a “very satisfied” level in all indicators used. Among 
the two, price discounts had the larger impacts on 
customer satisfaction. It indicates that customers are 
positively responded to direct financial incentives over 
seasonal incentives. Moreover, correlation analysis also 
found a strong positive relationship between the two, r 
= 0.738. Therefore, the current study showed that the 
use of  pricing mechanism not only align with Theory 
of  Customer Satisfaction by Oliver but also in line with 
Monroe’s Behavioral Pricing Theory, where people 
will feel satisfied when the price is seen as fair and as a 
reward. In short, the result of  the current study proved 
to contribute well to previous studies. The findings have 
implications to the local Cabanglasan local coffee shop 
owners. The owners can promote their shop by creating 
and maintaining long-term pricing discount program, 
while in the shorter term they can do the similar variation 
programs lifespan over the community already. Future 
researches might consider additional variables, such as 
service quality, shop ambience, or product differentiation, 
to incorporate a more comprehensive explanation of  
determinants of  customer satisfaction in local coffee 
shops.

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