https://blogs.ubc.ca/dorisjy/2013/11/14/price-discrimination-in-china/(Link to the classmate’s blog)

I disagree agree with the author’s opinion. In India, most people prefer tea but Starbucks sets much lower price in India than in China. When a kind of good is needed, its price will be set high.

China is now developing at a considerable speed. Most companies consider China as a large market, and it exactly is. People can earn more money than before, and the large population is a factor that cannot be neglected. Chinese, especially young people are willing to accept different cultures. Some young people like to have Starbucks coffee only because they think it is a way to show off. As long as there is large demand for Starbucks coffee, the price would not be cut.

Ultimately, the high price results from the diffident. We think that import commodities and foreign brands are more credible and are of higher quality. Some Chinese firms produce goods of poor quality, which results in the distrust. One drop of poison infects the whole tun of wine. Chinese enterprise must regains trust with honesty.

http://www.forbes.com/sites/greatspeculations/2012/09/07/starbucks-is-finally-coming-to-india-cautiously/

http://blogs.reuters.com/india/2013/04/04/starbucks-in-india-if-coffee-cools-please-reheat/