An Empirical Study on Pricing Strategy and Brand Loyalty: Assessing the Viability of a ‘Starbucks Pass’ Among University Students

Jing Foo Yee; Shivaprasad S; Kavyashree B; Likitha D; Sanjay H N; Azad Muzaffar Abdul Rahim; Buvanesswari A/P Gunasekar; Celeste Jie Yu Chin; Tat Cheng Chan; Daisy Mui Hung Kee

doi:10.32535/ijthap.v9i3.5121

An Empirical Study on Pricing Strategy and Brand Loyalty: Assessing the Viability of a ‘Starbucks Pass’ Among University Students

Jing Foo Yee, Shivaprasad S, Kavyashree B, Likitha D, Sanjay H N, Azad Muzaffar Abdul Rahim, Buvanesswari A/P Gunasekar, Celeste Jie Yu Chin, Tat Cheng Chan, Daisy Mui Hung Kee

Abstract

This study investigates coffee consumption and subscription model acceptance among university students in Malaysia and India. While traditional loyalty programs are widely studied, empirical research on food and beverage (F&B) subscriptions for this demographic remains limited. To address this gap, this research evaluates the "Starbucks Pass" to enhance brand engagement. Integrating the Theory of Planned Behavior (TPB) with price sensitivity concepts, the study examines how perceived value, brand loyalty, financial constraints, and convenience influence subscription willingness. A quantitative survey sampled 176 students across both nations. Findings reveal that convenience and perceived value significantly enhance brand loyalty and positive intentions to subscribe. Interestingly, financial constraints did not deter subscription willingness, suggesting that lifestyle benefits and digital convenience outweigh traditional budget limitations. By positioning subscriptions as an innovative digital retail strategy, this study contributes to SDG 9 (Industry, Innovation and Infrastructure) and provides strategic insights for F&B chains to retain youth demographics in Asian markets.

Keywords

Brand Loyalty; Perceived Value; Price Sensitivity; Subscription Business Model; Theory of Planned Behavior; University Students.

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DOI: https://doi.org/10.32535/ijthap.v9i3.5121