Cost of Coffee

    Published: 06-16-2009
    Views: 8,614
    One neurologists says that Starbucks is missing out on higher profits and EEG readings show that consumers are willing to pay higher prices for their morning joe.

    Emerald Robinson: At what point do you say that white mocha Americano triple shot isnt worth what youre paying? One German neurologist says its a little more than Starbucks obviously knows. He found that study participants were willing to pay between $2.

    85 and $3.

    25 for a small cup of Starbucks coffee that usually really costs $2.

    45.

    Using an EEG to monitor peoples brain waves as they were looking at coffee and pictures of coffee with different prices, the researcher observed that prices too cheap or too high triggered the region of the brain that makes sense of connections. And these neuronal mechanisms topped out at $3.

    25 for a small coffee. He says that Starbucks is messing up by not understanding this mechanism.