Research Proposal

On
Frequent Price Changes: Shifting Consumer’s Preference of
Carbonated Beverage

Course Title: Research Methodology

Course Code: 4105

Submitted To:
Kanon Kumar Sen
Lecturer
Department of Accounting & Information Systems
Jahangirnagar University

Submitted By:
Team Antidote
Department of Accounting & Information Systems
Jahangirnagar University

Date of Submission: 05 Aug 2023

 Members of Team Antidote

No. Name ID
1 Farjana Rahman 1763
2 Mehrubin Parash Moumita 1764
3 Fatema-Tuz-Zohra 1766
4 Priyonti Roy 1767
5 Shakhawat Hossain 1770
6 Md. Murad Hasan 1777
7 Kajal Mondal 1778
8 MD Shaheed Uz Zaman 2380
 Table of Contents
Problem Statement .......................................................................................................................... 2
Research Question .......................................................................................................................... 2
Research Objective ......................................................................................................................... 2
Literature Review............................................................................................................................ 2
Data Collection ............................................................................................................................... 3
Tool of data collection ................................................................................................................ 3
Methodology ................................................................................................................................... 4
Research Style ............................................................................................................................. 4
Research Method ........................................................................................................................ 4
Proposed Budget ............................................................................................................................. 4
Time frame of the study .................................................................................................................. 4
References ....................................................................................................................................... 5
Appendices ...................................................................................................................................... 6
Questionnaire .............................................................................................................................. 6
Variables ..................................................................................................................................... 8

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Problem Statement

In the market in Bangladesh, the prices of beverages, especially soft drinks, have been fluctuating
more frequently. This price change may have been a significant reason behind the mass shift of
consumer preference from global brands to local brands for more budget-friendly purchases.
Through conducting this study, an attempt will be made to highlight how the price, concerning
other social and economic factors, affects the beverage industry and the buying behavior of
customers.

Research Question
RQ1: Does the price of a beverage affect a consumer’s preference?
RQ1: What is the impact of consumer preference on the beverage industry?

Research Objective

The research aims to find out whether the price of a beverage has an impact on consumer
preference or consumption patterns and how could it affect the business of the companies involved
in the beverage industry. This could reveal whether the pricing of beverages is an indicator of
opportunities for local companies to conquer the shifting consumers.

Literature Review
Bangladesh is a country where carbonated beverages or soft drinks are closely tied to the food
culture. A statistical report of Coca-Cola revealed that Bangladesh is one of its highest sales
regions with revenue over 700 billion dollars due to having a dense population. Niloy, A. C. (2020)
mentioned in his research that the consumption pattern shows that the consumption of carbonated
drinks is much higher than milk, protein, and food forms, especially among students and young
adults within the range of 6-25 years. The most sold global beverages here are mainly Coca-Cola
followed by Mountain Dew, Pepsi, Sprite, 7up, Mirinda, etc. As per Islam and Fatema (2014), the
local brands found are Mojo, RC Cola, Daily Cola, Lemu, RC Lemon, etc. but their popularity was
overshadowed by the global brands due to their superior product taste and packaging. The majority
market share holder in Bangladesh is PepsiCo and Coca-Cola in second.

But recently, the prices of carbonated beverages have increased at least three times in the last few
months, which is an irregular case of inflation. The TBS report (2022) stated that a 200 ml bottle
of Coca-Cola was priced at BDT 25 from 20 while Mountain Dew was priced at BDT 25 from
only BDT 15. Not after too long, the same bottle of Coca-Cola is priced at BDT 30 in 2023. The
investigation revealed that the rising cost of PET bottles, transportation, and potential tax
implications led the companies to mark up their sales price. At the same, the supply of local brands

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has happened to increase and more people have been observed drinking local carbonated
beverages. Because regular drinkers of soft drinks find the current prices inconvenient in contrast
to their spending budget, and the local brands seem much more affordable with similar flavor
profiles. More local companies are attempting to enter the market with new carbonated beverage
ideas.

The purpose of this study is to prove the relationship between product price and consumer
preference in a homogenic market and how it influences the competition of global and local brands
in the beverage industry. The findings from the data collection and analysis section will be used to
provide recommendations for local companies who can gain benefit of the current market trends
and changes. It is expected according to Pandey and Kumar (2017) that when companies realize
that the price hikes are causing the consumption pattern to change, the brand awareness strategies
could be useful to hold on to their sales. This is a more vibrant opportunity for local companies to
generate higher sales as customers have somewhat leaned towards the local brands as inexpensive
substitutes.

Data Collection

The sampling method used in this research is random sampling. The purpose of this study is to
explore the cause-and-effect relationship between beverage price and consumer preferences in
Bangladesh. The primary source of data will be a questionnaire answered by students, job holders,
and teenagers. Secondary sources will be online articles from reliable websites, sales reports of
beverage companies, and previously published research papers.

In this report, product cost, consumer behavior, and consumer income are independent variables.
The dependent variable is product price and consumer preferences. Relationships between
variables are expected to be affected by some moderating variables. These include age, loyalty,
freight cost, raw materials quality, supply chain, and packaging.

Tool of data collection

A questionnaire will be used as the tool of survey to collect the primary data from our unit of
analysis i.e., consumers. The questions are mostly close-ended with specific options, while a few
open-ended questions are included to collect discrete and continuous data (Vogt, 2010). The
following list of questions to be used for sampling data has been developed to identify the
relationship between beverage drinks price and consumer preferences in Bangladesh. The
questionnaire may later be modified or updated based on research needs and rectifications.

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Methodology

Research Style

The study utilizes a causal research approach, employing experimental and quasi-experimental
designs to analyze the impact of consumer preferences and choices. By understanding the factors
influencing consumer behavior in response to price changes.

Research Method
The research will use a quantitative method to continue the study. It means it will mostly use
numerical data and a regression equation will be used to analyze the received data. This study will
employ partial least squares path modeling to assess the relationship between beverage price and
consumer preferences. The conclusion will be drawn based on the results that prove independence,
homogeneity of variance, and normality of the variable involved (Aylmer, 2017).

Proposed Budget
This research aims to develop a customized scale and conduct an online survey to collect data for
quantitative analysis. A budget allocation of BDT 1000 is allocated for interview costs, BDT 600
for transportation costs, and BDT 200 for the online survey. The quantitative data collected will
be analyzed to assess the relationship between beverage prices and consumer preferences.

Time frame of the study

During the study, several stages will be completed within a specific timeframe. A literature review,
which forms the basis for the research, will be conducted over 5 days. Within 10 days, the research
design will be completed. The data collection will be designed and distributed over 15 days.
Following data collection, the data will be analyzed using appropriate statistical methods within
15 days. Finally, a research report will be prepared, including the compilation of findings and
recommendations, with a timeline of 5 days.

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References
Aylmer, R. (2017). Statistical methods for research workers. Kalpaz, New Delhi, India.
Niloy, A. C. (2020). An Unhealthy Buying Pattern of the Peoples of Bangladesh: A Case of
Tobacco & Beverage. Asian Business Review, 10(3), 167–170.
Pandey, M., & Kumar, S. (2017). The impact of psychological pricing strategy on consumers’
buying behaviour: a qualitative study. International Journal of Business and Systems
Research, 11(1/2), 101.
TBS report. (2022, October 4). Bottled mineral water, beverages become costlier. The Business
Standard.
Vogt, W. P. (2010). Data collection. Vol. 3: Data collection experiments and observational
research. Sage.

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Appendices

Questionnaire
Demographic Information:
1. Age: ____
2. Gender: Male / Female / Other
3. Occupation: ____________
4. Monthly Income Range (in BDT)
● No individual income sources
● 5000-10000
● 10001-25000
● 25000-50000
● 50000-100000
● 100000+

Consumption pattern
5. How often did you consume carbonated beverages, before the recent price change of the
products?
- Daily
- Weekly (Specify frequency: ___ times per week)
- Monthly (Specify frequency: ___ times per month)
- Rarely
- Never

6. How often do you consume carbonated beverages, after the recent price change of the products?
- Daily
- Weekly (Specify frequency: ___ times per week)
- Monthly (Specify frequency: ___ times per month)
- Rarely
- Never

7. Which carbonated beverage do you prefer most?

● Coca-Cola
● Mountain Dew
● Pepsi
● Sprite
● 7up
● Mirinda
● Mojo
● RC Cola

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 ● Daily Cola
● Lemu
● RC Lemon, etc.
● Others

8. Over the past few months, have you noticed a price increase in your preferred carbonated
beverage?
- Yes
- No
- Unsure

9. If yes, has the recent price increase somehow affected your purchase behavior?
- I buy the same amount.
- I buy less frequently.
- I have switched to a cheaper alternative.
- I have stopped buying it completely.

Price Sensitivity:
10. On a scale of 1 to 5, how much does price influence your decision to buy a beverage (1 being
"Not at all" and 5 being "Very much")?

11. If the taste and quality were comparable, how much more are you willing to pay for a global
brand compared to a local brand?
- BDT 0 (no difference)
- BDT 5
- BDT 10
- BDT 15
- More than BDT 15

Perception of Local Brands:

12. Do you believe the fact that local carbonated beverage brands offer ‘value for money’
compared to global brands?
- Strongly Agree
- Agree
- Neutral
- Disagree
- Strongly Disagree

13. Recently, have you tried any local beverage brands? If yes, which ones?
(Providing a list or an open-ended answer)

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14. If a local beverage brand offers a similar taste and quality at a cheaper price, would you
consider permanently switching that brand?
- Definitely
- Maybe
- Unlikely
- Never

Other Factors Influencing Purchase:

15. What other factors influence your choice of carbonated beverage, expect the price (Multiple
options can be selected)
- Brand reputation
- Taste
- Packaging
- Nutritional content
- Marketing and advertisements
- Recommendations from friends/family

16. On a scale of 1 to 5, how concerned are you exactly about the health implications of frequently
consuming carbonated beverages?

Open-ended Questions:
17. What recommendations do you have for global beverage brands to expand the customer base
in Bangladesh amid the rising prices of global brands?
18. Can you please name a recent advertisement or promotions from local beverage brands that
caught your attention? (Short paragraph answer)

Variables

product
Cost
Consumer
Income
behaviour

Consumer
preference

Figure 1: The independent variables affecting consumer preference (DV)

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