Principles of Business School

Based Assessment
(SBA)

Year of SBA: 2021

Topic: To investigate what influences the cost of production at Sakura Express and how it

impacts consumer behaviour and popularity.

 Table of Contents

TITLE PAGE NUMBER

Aim of Study 2

Objectives 2

Background Overview 3

Methodology 5

Presentation and Analysis of Data 5-7

Findings 8

Recommendation 9

Conclusion 10

Appendix 11-12

References 13

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 Research Topic
- To investigate what influences the cost of production at Sakura Express and how it

impacts consumer behaviour and popularity.

Objectives

● To determine if the location of Sakura Express impacts consumer behaviour and the

popularity of the business.

● To determine how consumers would react to a change in pricing.

● To determine if the prices at Sakura Express are affordable for its consumers.

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 Background Overview
This school-based assessment aims to investigate what influences the cost of production at

Sakura Express and how it impacts consumers behaviour and popularity. Sakura Express is a

Cantonese restaurant business located in Ocho Rios Jamaica and has been around since

November 2011. However, some consumers believe that the food at Sakura Express is

overpriced. By doing this investigation, we will be able to determine if the best method of

pricing was used to bring profit to the business while being affordable to the consumers. This

topic is important to be studied as Sakura Express has decreased in its sales and ratings

throughout the years. It is believed that if Sakura Express made changes in its price to fit the

standard of food being served, they will see an increase in sales and the consumers will be

more satisfied.

An article published on the website ‘Unleashed Software’ on October 13, 2017, titled

“How Your Pricing Strategy Affects Customer Satisfaction” states the effects your prices

may have on consumers. Sakura Express will be able to assess their production costs to

finalize a suitable fitting price range for their goods to increase their sales and increase in

popularity. This research is important as it will enlighten readers of the importance of pricing

as it relates to the cost of production and how it can increase consumer satisfaction and bring

about popularity to a business. Also, it will state some of the ways production may influence

price and how society can adapt to an easier and effective method of pricing as they will now

be able to choose the most cost-effective way to produce goods.

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 Methodology
For the researchers to gather information on this topic, a survey was done in the form of

an eight(8) item digital questionnaire. Thirty(30) of these questionnaires were circulated via

social media targeting the consumers of Sakura Express of which twenty-five(25) was

completed. The questionnaire consisted of six close-ended questions. Questionnaires were

chosen as they would facilitate quick response times and provided ease in the analysis of the

data. To get an unbiased answer, the survey was available to anyone who purchased from the

establishment. Additionally, eight(8) interview questions were also used in an interview with

the manager of Sakura Express to receive more information on the topic and research was

carried out by reading online articles relating to the topic and textbooks to assist in the

understanding of the importance of consumer behaviour. Secondary data was therefore used

to gather public opinion from some customers which will help in understanding how the

pricing would impact consumers.

Of the thirty(30) questionnaires sent out, twenty-five(25) was completed, this was an

adequate amount of information but challenges were faced as it took a long time to gather all

these responses. Following the Covid-19 protocols and for the safety of the researchers, the

questionnaire was chosen to be done electronically and sent out via Whatsapp and other

social media platforms. This took away a lot of time as the researchers sent out surveys

continuously with the hope of gaining responses from the consumers of Sakura Express.

Nevertheless, data was gathered and the researchers were able to analyse and represent the

data in the form of pie charts, bar graphs and tally charts.

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 Presentation and Analysis of Data
PIE CHART SHOWING THE RESPONSES ON WHETHER THE PRICES AT
SAKURA EXPRESS ARE AFFORDABLE OR NOT

Figure #1. Pie chart showing the affordability of prices at sakura express

Based on the results of the questionnaire, sixty(60)% of the respondents think that sakura

express is not expensive but at the same time not affordable, thirty-four(34)% believe they

are affordable and six(6)% believe they are expensive.

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 BAR CHART SHOWING WHETHER OR NOT INDIVIDUALS WILL STILL
SUPPORT THE ESTABLISHMENT IF THERE WAS AN INCREASE IN
PRODUCTION COSTS

Figure #2. Bar chart showing the support in the establishment if there was an increase

in production costs

The data collected from the questionnaire showed that fifty-nine(59)% of the respondents will

still support the business even if they increased the production costs, thirty-four(34)% of the

respondents would not still support the business and seven(7)% of the respondents maybe

would still support the business.

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 PIE CHART SHOWING WHETHER OR NOT INDIVIDUALS BELIEVE THE
CURRENT LOCATION HELPS TO INCREASE SALES AND POPULARITY OF
THE BUSINESS

Figure #3. Pie chart showing the agreeance of whether the cost of production influences

consumer behaviour.

The results from the questionnaire showed that twenty-seven(27)% of the respondents do not

believe that the location of Sakura Express influences consumer behaviour and popularity

while seventy-three (73)% believes it does.

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 Findings
Figure one(1) shows what the respondents think about the affordability of the establishment.

Of the total sixty(60)% believed the business to not be expensive but also not affordable.

Thirty-four (34)% thought that the establishment was very affordable and a mere six per cent

believed it to be expensive. Figure two(2) goes on to show how many of the respondents

would still support the establishment if there was an increase in the prices of the products

they offer with thirty-four(34)% refusing to support the establishment. Fifty-nine(59)% chose

to support the business despite the increase and seven per cent chose the option maybe,

meaning they were unsure of what action they would take.

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 Recommendation
After analysis, it is believed that the establishment could do the following to boost popularity

and sales:

● Source raw materials at a lower price locally so they can lower their prices and

receive more customers buying more products while still maintaining their current

customer amount, ultimately leading to an increase in the profits and popularity of the

establishment.

● Seek to upgrade the quality of their food as some consumers are not pleased with the

current level of the food. This will allow for more satisfied customers thus the

business will see an increase in sales and popularity

● Allocate more money to marketing and advertisement to build trust and persuade

possible future consumers past the consideration stage, and straight into a purchasing

mode.

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 Conclusion
Based on the data and results obtained throughout this research, it was revealed that Sakura

Express’ cost of production is in the affordable price range but if they were to reduce this cost

of production they will receive more customers and thus generate more income. The

behaviour of Sakuras’ consumers is affected by this cost so any alteration to it will cause

changes in profit and popularity of the business. The Ocho Rios location of Sakura Express

brings many customers as it is strategically located in the plaza of Eight Rivers, where it is

high in traffic, thus receiving customers coming in on lunch breaks throughout the day or at

the end of the working day from students and workers going back home. The business will

see an increase in sales and popularity if they lower prices by buying locally grown raw

materials, upgrade their food quality and increase their marketing and advertising budget.

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 Appendix
QUESTIONNAIRE

Copy of eight(8) item digital questionnaire answered by twenty-five(25) people who

purchased from the establishment.

Influences on production costs at Sakura Express and its impact on consumer

behaviour and popularity.

1. Have you ever purchased food at Sakura Express?

- Yes

- No

2. Is the service and quality of food at Sakura Express of acceptable standards?

- Yes

- No

- I don’t Know

3. How often do you purchase food at Sakura Express?

- Once per month

- 2-4 times per month

- 5 or more times per month

4. Would you say that the prices at Sakura Express are affordable?

- Yes, very affordable

- It is not expensive but not affordable

- No, they are expensive

5. If the prices at Sakura Express were to be increased due to an increase in

production costs, would you still support the business?

- Yes

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 - No

- Maybe

6. Have you seen any advertisements or any type of marketing strategy done by

the business?

- Yes

- No

7. Would you recommend the establishment to a friend?

- No

- Yes

8. Do you believe the current location of the business helps to boost the

popularity and sales of the establishment?

- Yes

- No

- I don't know

INTERVIEW

Copy of Interview Questions asked to the manager of Sakura Express:

1. If the raw materials were lower, would you also decrease the price of the final goods?

2. Are you satisfied with the current price of your products?

3. Is the restaurant making enough profit to maintain the current pricing?

4. How much is the estimated cost to acquire the raw materials?

5. What is the cost of sourcing goods?

6. Where is the location that you source your goods from?

7. Do you think your prices are the main factor influencing consumer behaviour and the

popularity and sales of the business?

8. If a competitor should increase or decrease their prices would you do the same?

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 Reflections
ARTICLES

- “How Your Pricing Strategy Affects Customer Satisfaction” published on the

website ‘Unleashed Software’ on October 13, 2017.

https://www.unleashedsoftware.com/blog/pricing-strategy-affects-customer-

satisfaction

- “The Effects of Business on Consumer Behavior” published on the website

“Chron” on April 26, 2019, by Zach Lazzari

https://smallbusiness.chron.com/effects-business-consumer-behavior-73788.html

BOOK

- Carlong Principles of Business for CSEC With SBA, Study Guide & Exercises by

Karlene Robinson and Sybile Hamil.

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