Tax Perception Shapes Coffee Shop Choices in Surabaya More Than Income or Education

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FORMOSA NEWS - Surabaya - A recent study by Wida Praditasari and Mohammad Wasil from Universitas Negeri Surabaya (Unesa), conducted between December 2025 and January 2026, reveals that consumer perception of taxes plays a decisive role in choosing coffee shops in Surabaya. Published in the Formosa Journal of Multidisciplinary Research in 2026, the study highlights that how customers interpret and accept taxes matters more than their income or education level. These findings are significant as they reshape how businesses and policymakers understand consumer behavior in urban lifestyle sectors.

Coffee Shops as Urban Lifestyle Spaces

Coffee shops in Indonesia, particularly in Surabaya, have evolved beyond simple beverage outlets. They function as social hubs, informal workspaces, and lifestyle destinations. This shift reflects broader urban consumption patterns, where people value experience, comfort, and social interaction alongside products.

In this context, pricing is no longer just about affordability. Consumers evaluate the entire transaction experience, including how clearly taxes are presented and whether they feel fair. This makes tax perception an integral part of the overall value customers receive.

Simple Method, Real Insights

The study uses a quantitative explanatory approach, analyzing data from 335 coffee shop consumers in Surabaya. Respondents were selected based on recent visits to coffee shops and surveyed through online questionnaires.

Key characteristics of respondents include:

  • Majority aged 15–25 years (86.3%)
  • Predominantly higher education background (76.1%)
  • Most earning ≤ Rp3,000,000 per month (70.7%)
  • High tendency to still choose coffee shops despite tax charges (88.06%)

The data was analyzed using binary logistic regression, allowing researchers to identify which factors significantly influence consumer preferences.

Key Findings

The study identifies three main conclusions:

1. Education does not significantly influence choices
Consumers with different educational backgrounds show similar preferences when choosing coffee shops. The shared urban lifestyle and similar consumption habits reduce the impact of education level.

2. Income is not a deciding factor
Despite traditional economic theory linking income to purchasing decisions, coffee consumption in Surabaya has become routine. This reduces sensitivity to income differences, especially when prices remain within a reasonable range.

3. Tax perception has a strong positive effect
Consumer perception of taxes significantly influences decision-making. Those with a positive perception of tax are over seven times more likely to choose coffee shops that include tax in their pricing.

This finding shows that psychological and experiential factors outweigh purely economic considerations.

Why Tax Perception Matters

Consumers do not simply react to the existence of a tax. Instead, they evaluate:

  • Whether the tax is clearly displayed
  • Whether it feels fair
  • Whether it matches the quality of service

When taxes are transparent and perceived as reasonable, consumers accept them as part of a legitimate transaction. However, unclear or hidden taxes can create dissatisfaction and discourage purchases.

This positions tax perception as a bridge between public policy and consumer behavior.

Implications for Business and Policy

The findings carry practical implications for both businesses and government institutions.

For coffee shop businesses:

  • Clearly display prices and tax components
  • Ensure transparency in billing
  • Maintain service quality that justifies total cost

For local governments:

  • Improve public tax literacy
  • Communicate the purpose and benefits of taxes more effectively
  • Build trust in tax systems through transparency

These steps can increase consumer acceptance without reducing demand.

Author Insight

According to Wida Praditasari from Universitas Negeri Surabaya, consumer decisions are closely tied to how they perceive fairness in transactions. She explains that tax perception acts as a “psychological bridge between fiscal policy and consumer behavior,” emphasizing that acceptance depends on clarity and perceived value.

This reinforces the idea that economic behavior in modern urban settings is influenced by perception as much as by financial capacity.

Author Profiles

Wida Praditasari
Affiliation: Universitas Negeri Surabaya
Field: Consumer behavior and economics

Mohammad Wasil
Affiliation: Universitas Negeri Surabaya
Field: Public economics and fiscal policy

Source

Consumer Preferences at Coffee Shops in Surabaya: Education, Income, and Perceptions of Taxes
Formosa Journal of Multidisciplinary Research (FJMR), 2026

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