> If you like keurig enough to drink it, why wouldn't you pay a dollar a cup?

That was the question.

If I don't have to pay the extra 60c... why would I do that? I have no incentive to pay $1 cup for something which I can get for, say, 40c/cup.

I might pay $1/cup, sometimes, but if I can get it for 40c... why pay more?