Businesses need to comprehend the different factors impacting consumer behavior in the context of competition if they want keep themselves viable and competitive. Within the coffee industry of Malaysia, this study aims to determine how different customer demographics such as age, geographical area, and income influence SMEs’ perceptions of brands and their price sensitivity. The study employs a 231-respondent sample to examine at how these demographic factors impact consumers’ decisions when it pertains with how they perceive brands and how much they are likely to spend for brands. To adjust for multiple comparisons, the research employs the Holm-Bonferroni correction at a moderate significance threshold of α = 0.10. These findings highlight significant differences in consumer behavior which can be related to demographic factors, which are important for small and medium-sized businesses. In particular, significant differences between the early working age and prime working age groups were identified (p = 0.029), underlining the impact of age on price sensitivity and brand perception—two factors that are critical for SMEs aiming to reach this age group. The need for focused pricing strategies and brand positioning is further highlighted by the significant differences in customer behavior between urban and sub-urban areas (p = 0.007) and between sub-urban and rural regions (p = 0.046). In addition, the findings presented that consumer price sensitivity was contributed by income levels, with significant variations between middle- and high-median income levels (p = 0.042). Holm-Bonferroni correction validate the findings where the outcome is an in-depth understanding on how demographic variables impact the customer prioritize. Therefore, SMEs must design their pricing and brand strategies based on demographic traits in order to strengthen their competitiveness.