Target ROI

Response $2$ of $5$: Value pricingValue pricing

Response $3$ of $5$: Competitor$-$based pricingCompetitor$-$based pricing

Response $4$ of $5$: Price skimmingPrice skimming

Response $5$ of $5$: Penetration pricingPenetration pricing

Mel consistently hears complaints from those in their audience that coffee prices at shops in their area are too high

Aren't many competing coffee shops in the area of Mel's first shop $-2$ others in the area

Since this is their first shop, Mel wants to set prices lower to attract consumers.

Also wants to set them a bit lower because Mel offers new coffee products not currently offered at the other two coffee shops in the area and they are concerned people will be unlikely to try new products if they are too expensive.