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This study aims to explore factors that affect gendered consumption (male and female), willingness to pay (economic attributes) and the socio-cultural context of Gen-Z consumers towards specialty coffee as compared to other types in Taiwan.

Samoggia and Riedel’s (2018) theoretical framework is adopted to examine the concepts of interest. A mixed method approach comprising interviews and experimental taste tests was used to collect data from Gen-Z specialty coffee consumers in a purposive sampling manner.

The findings suggested the effect of price elasticity of demand where specialty coffee was perceived as an expensive commodity by young consumers, and hence, not a regularly purchased item. Nevertheless, specialty coffee was linked to health benefits, and a signal for conspicuous consumption – where café experiences facilitated self-promotion on sites like Instagram and Facebook. Finally, the findings alluded to a potential gender effect, with more female young consumers likely to consume specialty coffee as compared to their male counterparts.

This study is located within the context of Taiwan, which has been a tea-dominated consumption landscape for numerous decades. The use of an experimental design also presents a unique angle to elucidate sensory elements surrounding specialty coffee as a research design for Gen-Z research projects. The study points to the relevance of social context in the consumers’ behavioural patterns, which has been largely implicit within consumer behaviour scholarship.

This study aimed to describe the cognitive associations existing among specialty coffee consumers through the means-end chain theory and personal values.

The research follows a descriptive qualitative study that used in-depth interviews and laddering, to collect data among 40 interviews with regular consumers of specialty coffees in Brazil. The interviews were transcribed, and from the content analysis, the attributes, consequences and values that emerged in the discourse of consumers of specialty coffees were found. The categories were later classified – according to the level of abstraction – and inserted into the LadderUx® software to generate the implication matrix and the hierarchical map of values. The interpretation of results occurred in a descriptive way.

Based on a hierarchical value map, the following personal values were identified: universalism, self-directed action, accomplishment, tradition and personal security. These values can be considered guides for consumption behavior. They are also related to consumption behavior that values technical attributes, such as roast level, packaging, aroma and flavor, and the relationships between these values and personal improvement, social relationships and recognition are relevant factors involved in decision-making.

This study presents the cognitive structure of Brazilian specialty coffee consumers. The coherent use of this information enhances the development of marketing actions involving communication actions, relationships with internal and external customers, new farm management strategies, direct trade with consumers and sustainable improvements in the production chain. These are the factors that can motivate the purchase of food, thus attracting new consumers to this emerging market.

The main aim of this research was to explore specialty coffee experience dimensions and what drives revisit intentions through experiencescapes. The theoretical framework on experience co-creation in food and wine consumption by Carvalho et al. (2021) was employed to explore the dimensions of specialty coffee shop experiences and specialty coffee consumer revisit intentions.

Using the interpretivist epistemology, this research explored these factors from the perspectives of customers, coffee shop baristas, and managers and owners to better understand consumer behaviour in the context of urban coffee shops. In-depth interviews were employed to collect data to obtain first-hand, emic perspectives.

The notion of specialty coffee and its experiencescape were examined in the context of a region of tea-dominated landscapes. This research highlighted the significance of baristas as agents of coffee connoisseurship, being able to introduce the beans and the art of coffee making to customers in active ways. The findings amplified that olfactory encounters triggering a myriad of senses are crucial to the specialty coffee experiencescape.

This is among the first studies to explore the driving factors for customer visits and revisit intentions to urban coffee shops. The findings point to greater sophistication and engagement in-person and online for urban coffee shops. More importantly, the olfactory encounters differed for solo and group customer.

Building on Guimarães et al. (2019) study and using the modeling of structural equations, the objective of this paper was to elaborate constructs whose variables would enable the characterization and distinction of individuals among these different groups of consumers and to provide insights into their transition between them.

The constructs were validated by the average variance extracted adaptive (AVEADP) index. The transition between consumer groups is explained and encouraged by advances in their conceptual and perceptual knowledge. Thus, regular consumers should be addressed with messages aimed primarily for the social aspect of consumption; enthusiasts, by reinforcing simple to moderate aspects commonly used as product purchase criteria and experts, attracted by the emphasis on complex criteria related to specialty coffee's conceptual and perceptual knowledge, highlighting their influence on the beverage's sensory profile.

Those results enabled a better understanding of these consumers and can guide the marketing strategies of different actors in this market.

Important attempts to understand and characterize Brazilian specialty coffee consumers were conducted by Guimarães et al. (2019) and Ramírez-Correa et al. (2020). However, further studies are needed to differentiate different specialty coffee consumer groups and enhance the market applicability of those studies results. In addition, despite its importance, there is a paucity of public domain studies about the national consumption of specialty coffees, being the results of this work important for the wide dissemination of such information.

The present study aims to examine consumers’ happiness experiences for speciality coffee consumption in Thailand by considering the role of consumers’ active participation, sharing of experience and consumer experience co-creation.

A purposive survey was conducted in speciality coffee shops located in the largest commercial city and industrial development centre in the Northeastern Region of Thailand, Khon Kaen City, which yielded 271 usable and valid responses. The proposed model was evaluated by using a structural equation analysis with a partial least squares technique.

The results confirmed that consumers’ active participation and sharing of experience affected their experience co-creation, which in turn contributed to the consumers’ happiness experience at the speciality coffee shops.

This study contributes to the consumer experience co-creation and social media literature by proposing a conceptual model for the speciality coffee consumption experience. Furthermore, the study findings contribute to the existing literature by investigating new linkages, such as the role of consumer experience co-creation in a speciality coffee context as a mediating variable of consumer active participation and the sharing of experience with consumers’ happiness experience.

There is a growing interest in understanding the strategic behaviour of family firms producing international commodities such as coffee, particularly in contexts where decisions about what products to sell, where to commercialise them and how to promote them appear to be highly based on both business and family aspects. The purpose of this paper is to explore product differentiation strategies in family firms in the specialty coffee industry across Latin American countries. Whilst the socioeconomic relevance of coffee production in Central America is unequivocal, the approach and rationale of families that engage in specialty coffee production remain underexplored.

This study examines product differentiation in specialty coffee family farms across countries in Central America: Guatemala, Honduras and Nicaragua. The study relies on in-depth interviews, case studies and an interpretative approach to unpick the dynamics of product differentiation by families in business dedicated to producing specialty coffee.

The findings show that product differentiation in specialty coffee family farms is influenced by both business and family aspects and driven by entrepreneurial stewards. Coffee-farming families can engage in product differentiation through a shared vision, a combination of traditional and specialised knowledge, and through the continuous development of an exchange network. The findings reveal a connection between families in business balancing family and business interests, and the strategic intention to build up their assets entrepreneurially over time.

This study contributes to the literature on stewardship and strategic behaviour in family firms when families in business engage in differentiating their products in a highly competitive industry. More specifically, this study focuses on companies across countries where coffee is of crucial socioeconomic importance, and where the said companies are owned and managed by families. The study expands understanding of product differentiation in family-enterprise-first businesses and suggests that the family elements in differentiation can be explained through an entrepreneurial stewardship perspective.

This study aimed to understand coopetition in the context of Brazilian specialty coffee grower Small and medium enterprises (SMEs), based on the need to differentiate the beans in and outside the farm level, taking into account the stakeholders’ influence.

In this study twenty semistructured interviews were carried out with coffee growers and managers of cooperatives, associations and supporting institutions involving two Brazilian coffee geographical indications. Data were analyzed using a mixed grid composed of qualitative, semantic and categorical factors.

Strategic moves undertaken by coffee growers and stakeholders have shaped the pathway of coopetition among coffee growers, as determinants to frame it as a deliberate or emergent pattern (intentional or unplanned, respectively). Our findings provide evidence that coopetition development among firms is deliberate when influenced by firms’ or stakeholders’ cooperative moves and emergent when influenced by firms’ or stakeholders’ competitive moves.

Although the firm/stakeholder relationship is often approached as a joint wealth creation effort, stakes are not always fairly distributed, so one of the parties may be negatively affected, with consequences for the development of coopetition. Underpinned by a stakeholder-oriented resource-based theoretical lens, this investigation of the development patterns of coopetition linked to the strategic actions undertaken by firms and stakeholders has resonance on competitive advantages.

The paper aims to understand the role of sensory quality scoring used at the competition auctions on pricing outcomes and how the auction process could be improved to increase sustainability in the specialty coffee market.

The authors build a conceptual model explaining the potential role of sensory quality scoring in generating inequitable outcomes in specialty coffee auctions. The authors' research is exploratory. The authors base the propositions on the findings of the extant literature and our analysis of data from 24 Best of Panama (BOP) Auctions that took place between 2017 and 2021.

A striking feature in recent BOP Auctions is a winner-takes-all (WTA) outcome. The authors also document the presence of significant price inversion. The authors attribute these outcomes to the interactions of information-poor producers, information-rich intermediaries and conspicuous consumers in competition auctions, where the product quality measurement is highly unreliable.

Data need to be gathered more broadly to enable the operationalization of the current propositions into testable hypotheses.

These strategies intend to provide guidelines for producers, consumers and other value chain participants on creating equitable solutions to a thriving industry where a WTA phenomenon occurs.

The current study is the first to argue that existing quality scoring practices, as well as conspicuous consumption, contribute to the inequities. Finally, the study proposes novel interventions to standardize the quality grading protocols and communicate them transparently to both producers and consumers.

The purpose of this paper was to assess the effects of quality coffee production on climate change adaptation using household surveys and interview data gathered from coffee farmers in Yirgacheffe, southern Ethiopia.

A sample of 352 households, stratified into conventional coffee farmers 232 (66%) and specialty coffee producers 120(34%), was used. The propensity score model for participating in quality coffee production was estimated using 14 covariates, and the impact of quality coffee production on adaptation to climate change adaptation was examined. The results are augmented with qualitative data collected through focus group discussions and key informant interviews held with randomly selected smallholder farmers. A telecoupling theoretical perspective was used to understand the link between coffee farmers’ adaptation practices and the demand for quality coffee, as coffee is a global commodity.

The PSM analysis reveals that quality coffee production positively influences climate change adaptation. This implies that conventional coffee producers would have performed better in adaptation to climate change if they had participated in quality coffee production. The results of group discussions also confirm the positive effects of quality coffee production on adaptation to climate change, which also suggests a positive spillover effects for sustainable coffee farm management.

This study suggests enhancing quality coffee production is essential if a more sustainable and climate change resilient coffee livelihood is envisioned.

Though many studies are available on adaptation to climate change in general, this study is one of the few studies focusing on the effects of quality coffee production on climate change adaptation by smallholders in one of the least developed countries, Ethiopia. This study provides a better understanding of the importance of adaptation strategies specific to coffee production, which in turn help develop a more resilient coffee sector, as coffee production is one of the most sensitive activity to climate change.

Identify the advantages and disadvantages of being first-to-market with a new product in a new environment. Explain the differences between business-to-business (B2B) and B2C markets, how they are interconnected in the speciality consumer good category and the challenges of developing a balanced strategy for both. Assess the competitive positions of different market players within both B2B and B2C. Analyse the role of brand in a niche market and how brand perception influences consumer behaviour. Identify and assess the different strategies for growth in an evolving niche market.

Origin Coffee is an artisan coffee roaster in South Africa grappling with rising competition, evolving consumer tastes and brand management concerns. As an early entrant, Origin largely created the niche market for speciality coffee across the country as both a retail coffee shop and a wholesale supplier to independent shops and businesses. This case follows founder Joel Singer 15 years later, in August 2020, as he contemplates how to scale the business, which has cultivated a brand synonymous with quality and excellence. Repeated efforts to expand the Origin footprint have met with disappointment and the business is still operating exclusively from its original roastery-café in Cape Town. Yet, the customer perception is that Origin is an industry giant – an established player that has outgrown its plucky upstart status. Origin also faces an increasingly crowded competitive landscape of local artisan roasters and larger chains. The case showcases the power of entrepreneurial innovation to cultivate a new niche market, as well as the risks of playing in a market that is very narrow and immature. Students are left to determine what Origin’s place in the future of South African coffee can and should be.

This case is appropriate for students enrolled in postgraduate programmes such as Master of Business Administration and Executive Education programmes. Although the case learnings are transferrable, this case will be particularly useful to students with interests in entrepreneurship, B2B and B2C market strategies and niche market strategy.

Teaching Notes are available for educators only.

CSS 11: Strategy.