Coffee is a part of everyday life in the Philippines. Coffee shop trends in the Philippines now in 2022, many developed a sense of taste for coffee and its various mixes, as well as the various brewing techniques that can be used for it, over the long years the pandemic has forcefully given us. Consequently, the income elasticity of the coffee grows over and over. With economic growth comes an increase in demand for purchased food and accompanying marketing services. The Philippines, like the rest of the world, is seeing an increase in the popularity of coffee as a beverage of choice. While soluble or instant coffee is still the preferred method of consuming coffee beans, Starbucks is the country's largest chain and seller of specialty coffee drinks. Price and quality, distinctive value, bottom-line benefit, equity, cost, supply, time pressure, comparability, perceived alternatives, switching cost, and brand perception are some of the factors that influence a consumer's final decision to buy a product or service. Knowing the market and your customers inside and out is critical for the business income elasticity improvement throughout the years.

Based on the statement above, it was mentioned how there has been a significant increase in the popularity of coffee as a beverage of choice in the Philippines, both instant coffee and specialty coffee drinks such as Starbucks. Considering these coffee products, between the two, which has a larger price elasticity and why? Is there a difference between the price elasticity of the two? Explain.

Based on the statement above on how the price sensitivity of consumers is able to affect firm decisions and using the example of coffee products in the Philippines, how will companies be able to keep track of the price sensitivity of their consumers to understand its effect? What factors will be considered by these companies to ensure that they are able to adapt to changes relating to this?