Utilizing Family Business Chatime Data to Study the Global Differences in Milk Tea Price Elasticity

Abstract

This study examines the global variations in milk tea price elasticity, with a particular focus on Chatime's performance across diverse international markets. By systematically analyzing cultural, economic, and market structural factors, the research elucidates how these elements shape consumer responsiveness to price changes. In markets characterized by high price elasticity, such as the United States and Malaysia, consumers exhibit heightened sensitivity to price fluctuations, prompting brands to adopt strategies such as bundling, membership programs, and promotional offers to stabilize demand. Conversely, in markets with low price elasticity, including Taiwan and Saudi Arabia, consumer responsiveness is comparatively muted, requiring companies to maintain and enhance market share through brand value cultivation, premium product offerings, and tailored marketing initiatives. Cultural influences emerge as a critical determinant of elasticity, with milk tea functioning as a cultural symbol in certain regions while serving primarily as a social or lifestyle commodity in others. Economic factors, including income distribution, purchasing power, and the intensity of market competition, further contribute to these variations, affecting both consumer behavior and corporate pricing decisions. Chatime's adaptive pricing strategies, which are informed by local elasticity patterns, demonstrate the brand's capacity to navigate complex market dynamics and optimize performance across heterogeneous global environments. The findings provide practical insights for multinational companies seeking to develop market-sensitive pricing strategies, enhance brand positioning, and effectively engage consumers in diverse cultural and economic contexts.