THE EFFECT OF PRICE VARIATIONS ON CONSUMPTION LEVELS

Edwin Mahiri

Marketing Manager | Business Bay Square Mall (BBS)

发布日期: 2021年5月6日

A CASE STUDY OF KAKIRA SUGAR WORKS

BY MAHIRI EDWIN KING

A Research Report Submitted to the Department of Humanities Business & Management in Partial Fulfillment of the Requirements for the Award of a Bachelor of Commerce Degree of Busoga University 2011.

DECLARATION

I Mahiri Edwin King declares that this project has resulted from data collection both primary and secondary resources acknowledged. It is original work and has never been presented to any institution of higher learning for any academic award.

DEDICATION

This research work is dedicated to my parents Dr. /Ms. Ishmael and Karen Mahiri, brothers; Denis, Jack, and Richard, sisters; Rachael and Faith and Agnes for their loving support through this time.

ACKNOWLEDGMENT

I would like to extend my sincere gratitude to God for giving me the strength and the opportunity to conduct this research work

I am deeply indebted to my supervisor for his invaluable advice and supervision during the course of writing this research, despite his heavy schedule of work.

Special thanks go to my dear parents who went through a lot of endurance during this period for their generous contribution to my success and for making me what I am today.

Lastly, sincere thanks go to my respondents for their cooperation and patience during the data collection period. God bless you all

LIST OF ABBREVIATIONS AND ACRONYMS

KLA Kampala

KSW Kakira Sugar Works

ABSTRACT

Establishing a high consumption level for any company’s product is critical to generate steady revenue of income.

In business practice, it is common to make management decisions made on the set of some fixed numbers that are meant to respect the extent of opportunities open to the firm.

One critical cost of establishing a high consumption level is to vary the prices of various commodities, its effects on consumption level taking Kakira sugar as our case study

The study therefore aimed at investigating the effects of price variations on consumption levels of Kakira Sugar and find out other factors affecting consumption levels besides price variations.

The study examined the effects of price variations on consumption levels using a sample size of 50 respondents. The results showed that Kakira sugar was consumed a lot due to its affordability and steady price variations. Also, other factors were suggested and listed down. Consumption levels of Kakira sugar can be increased by decreasing its price.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The importance of pricing is to show that consumers and organizations will buy many things if the price is favorable. Manufacturers can produce the finest product in the world but if it’s priced too high, less quantity will be consumed (Nickets William 1987,)

Price is also a critical ingredient in consumer evaluations of products because pricing decisions should be completely integrated with product decisions since the price is part of the product offer. (Sloman J) also states that most consumers react in this way, then we have no difficulty in accepting the general shape of the demand curve. That is, people are prepared to buy more goods at a lower price than at a higher price, creating a downward sloping demand curve. This follows the assumption that most people will buy more of a product if they think the price is favorable.

According to (Mayor 1990), pricing is the only marketing variable that guarantees revenue, all others involve the expenditure of funds, he further said that the effects of price changes are more immediate and directly communicated to the prospected consumption. (Mayor) therefore stated that the effects of price variations will directly affect the consumption levels.

The study, therefore, seeks to find out the effects of price variations on consumption levels taking Kakira Sugar Works as our case study.

1.2 STATEMENT OF THE PROBLEM

According to (Rogers 1998) in his book of marketing indicated that price is the money exchange for ownership or the use of goods. He further said, for most products and services money is exchanged, although the amount isn’t always the same and from a consumer standpoint, price is often used to indicate value when it’s priced with the perceived quality of produce, more will be consumed.

The sales volume of sugar is continuing to decline in comparison with the forecasted sales in Kampala district despite K.S.W.'s improvement in the quality of its product. Therefore the study is intended to assess whether its price is affecting the consumption levels of Kakira Sugar in Kampala district.

1.3 PURPOSE OF THE STUDY

The study aimed at establishing the effects of price variations on consumption levels taking Kakira Sugar Works as our case study.

1.4 OBJECTIVES OF THE STUDY

The study aimed at achieving the following objectives:-

To find out whether there is a relationship between price and consumption levels.
To find out whether price can increase or decrease a company’s sale volume
To find out the factors affecting price variations and their effect on consumption levels

1.5 RESEARCH QUESTION

The study aimed at providing solutions to the following questions:-

What is the relationship between price and consumption levels?
Can price changes change a company’s sales?
How do price variations affect consumption levels?

1.6 HYPOTHESIS

The hypothesis of Kakira Sugar Works is that price has no significant effect on its consumption in Kampala district because it’s a necessity

1.7 SCOPE OF THE STUDY

1.7.1 Geographical scope

The research was carried out in Kakira district at Kakira Sugar Works

1.7.2 Time scope

The research covered the operations of the company for a period from 2008-2011.

1.7.3 Study scope

The study mainly concentrated more on the effects of price variations on consumption levels between 2010 and 2011.

1.8 SIGNIFICANCE OF THE STUDY

The study is expected to benefit the following groups of people. The management of Kakira Sugar Works especially those involved in setting up sugar prices and to help the sugar sector establish the relationship between price and consumption patterns.

The research will be useful to managers in developing organized thinking and have a better perception of the effects of price variations on consumption levels.

Potential investors in similar businesses will also benefit by getting a better appreciation of the effects of price variations on consumption levels. The researcher will also benefit from exposure to different research methods and instruments. The experience that will be obtained will help him to improve on his research skills such as getting a better appreciation of interviewing.

The students of Busoga University will also benefit in such a way that they will be in a position to use this information as a guide when doing their research in related areas. The researcher will also benefit since this research work will lead to an award of a degree in Business Management of Busoga University.

1.9 CONCEPTUAL FRAMEWORK

CHAPTER TWO

LITERATURE REVIEW

This chapter provides an analysis of the salient issues on the existing literature on the effects of price variations, definitions of the concepts in theory, and the effects on consumption levels that have been explored and studied by other scholars both theoretically and empirically.

2.1 REVIEW OF RELATED LITERATURE

According to (Nickets William, 1987), pricing is so important in marketing that it has been singled out as one of the four (4) Ps along with product, promotion, and place. Price is also a critical ingredient in consumer evaluations of products. In this section, we shall look at price as both an ingredient and as a strategic marketing tool.

He further said that the importance of pricing is to show consumers and organizations will buy many things if the price is right. One can design the finest product in the world but if the price is too high, less quantity will be consumed. Pricing decisions therefore should be completely integrated with product decisions because the price is part of the product offer.

(Nickets William 1987,) states that any business transaction in our modern economy can be thought of as money. The money brings the price for something, that thing can be a physical product in various stages of the competition with or without supporting activities with or without quality guarantees. He further said that the importance of pricing is to show that consumers and organizations will buy many things if the price is favorable. Manufacturers can produce the finest product in the world but if it’s priced too high, less quantity will be consumed. Pricing decisions should therefore be completely integrated with product decisions because the price is part of the product offer.

2.2 DEFINITIONS OF THE CONCEPTS IN THEORY

2.2.1 Price

(Balunywa 1998) defines price as what we pay for all the products and services we use, and he defines it in several ways and names such as wages, salary, rent, fees, interest rates, and commission, among other terminologies.

Oxford dictionary tenth edition defines price as the amount of money expected, required, or given in payment for something.

According to (Perfreaunt William, 1990) he stated that price is what is charged for something. Therefore (value =perceived quality/price) this relationship shows that for a given price perceived its quality increases, hence value increases. (Iroed Rayorod 1998) defined price as the amount paid for specific quality and quantity of goods and services. He further said, for most products and services money is exchanged although the amount isn’t always the same and the consumer’s point of view of price is often used to indicate the value of a product when it’s priced with the perceived quality.

2.2.2 Price variations

According to (Balunywa) price variations are defined as the rise or fall in prices of a product or service depending on the current market situation.

2.2.3 Effect

According to the oxford dictionary tenth edition, an effect is a change that is a result or consequence of an action or other cause. It can further be explained as the extent to which something succeeds or is operative.

2.2.4 Consumption concept

According to (Brown and Clow 1989) he explained that consumption is the act of using a product or service in any form desired and that somebody who undertakes the process of consumption is called a consumer( whether individual or organization ).

(Brown and Clow 1989) put it that, during the consumption process it is our rights as customers, that we have the responsibility of using our rights effectively and you must do your share in protecting those rights. You must have a responsibility to keep informed of all of your concerns.

2.2.5 Consumption level

According to (Tayebwa 1992), defines consumption level is the act of using goods and services to satisfy human wants and needs. He stressed that consumption is higher when the income levels are high and when the income levels are low, the consumption levels also decline. He, therefore, said that income influences people’s consumption of products and further noted that consumption level is affected by substitutes, where two different commodities can be used to satisfy the same demand. Example: Pepsi and Coca-Cola. However, he noted that an increase in the price of substitutes improves the quantity demanded of other commodities and vice versa.

2.3 THEMES AND SUBTHEMES OF THE LITERATURE REVIEW

2.3.1 Factors affecting Pricing variations

Pricing concept

(Balunywa 1998) states that pricing as a decision in any business organization is made with various objectives in mind. The price has to take into consideration the customers’ ability to buy. It must relate to that of competitors and must be sufficient to enable the company to make profits and survive.

The author further states that the price structure of an organization should be directed toward the accomplishment of certain marketing objectives that lead to overall organizational objectives, that is survival, maximizing profits, obtaining a high percentage of the market share, achieve a certain rate of return, meet or prevent competition and growth of the company.

(Davar 1997) expressed that in marketing management, pricing is a very critical decision after meeting all the costs involved, the sales revenue generated must yield a surplus before there can be profits. He also said that the sales revenue figure is however materially affected by the prices charged. If the price is too high, the sales generated are likely to be low and therefore sound pricing policies must be adopted to ensure that the organization secures satisfactory profits.

Elasticity concept.

(Davar et al) explained that, elasticity concept is useful in considering the relationship between prices, quantities, and total revenues at different points on the curve. For example, if a price decrease is followed by an increase in the total revenue, demand is elastic. They explained that although the marketing manager may not have a demanding schedule for his product, he will have ideas about it through experience or judgment and must whilst determining whether a price decrease or product improvement would be more beneficial.

According to (Rubinfeld, 1998), price elasticity of demand is a dimensionless construct referring to the percentage change in purchase quality or demand with a 1% change in price. It is determined by a multitude of factors such as availability of substitutes, household income, consumer preferences, expected duration of price change, and the products share of a household income

Price Determination

(Baker 1991) stated that pricing service is generally believed to be more difficult than the pricing of manufactured goods. He noted for example that pricing for public transport such as buses or trains will to a larger extent be determined by public regulation to make the service more attractive and within reach to the majority of people.

(Kontsoflanmis 1979) argues that price is what the firm would wish to charge if it is to cover all its costs with normal utilization of its plant. He further stated that price determination involves two distinct stages. The first stage is where the firm defines the price that it would like to charge, say (P) to cover its total costs and some reasonable profit. Secondly, the firm compares its estimated price with the level of price at which entry would occur and sets the price at a level say (P1) which would effectively defer entry. Further, the author noted that in setting the desired price two methods can be used;

Cost-based pricing; is either a profit-oriented method, where price setting is done by professional associations or government-controlled.
Market-oriented pricing; this is where the company is either for competitive reasons or because the firm is consumer-oriented.

(Kontsoflanmis 1979) states that the orderly coordination and functioning of the industry is often attended by price leadership. The price leader is among the largest firms with the lowest costs. The price leader makes his price calculations according to the average cost nil, but will charge a price which depends on;

i) Potential competition.

ii) General economic conditions (booming and depressed business)

If there are barriers to entry, the price (P1) will be higher than the normal price (P) and the price leader will be making abnormal profits.

According to (Livesey, 1976) he points out that, if price awareness is high, then the firm will have to ensure that its prices are not in line with competitive products. He adds that in the case of low prices awareness there might be a need to increase awareness to be able to take advantage by undercutting rivals. He also points out that costs are an important determinant of basic price.

He notes that the relationship between cost and price might differ from market to market following the state of demand, the structure of the market, and the objectives of the firm. While (Maris 1997) states that cost is not his main concern, asserting that the price structure will emerge either after a period of war, and, or product change war/ or by collusion in the form of trade prices a parameter rather than a policy variable. In recent years, economists have developed the theory of contestable markets. This theory argues that what is crucial in determining price and output is not whether an industry is a monopoly or competitive but whether there’s a real threat of competition.

Demand concept.

According to (Nasar, 1987) the concept of demand states that as the price of a product falls, the quantity demanded will rise i.e. the lower the price, the larger the quantity likely to be sold.

According to (Lipsey and Chrystal), the demand concept shows the normal relationship between price and quantity demanded of a product, if all the other influences remain constant, we would expect the quantity demanded to rise as prices fall and to fall as prices rise. Therefore if prices are favorable (fall in prices) more will be consumed and if prices rise less will be consumed ceteris paribus.

Expansibility of demand concept

According to (Davar) the expansibility of the demand concept is concerned with the movement of the whole demand curve to the right or left as against the elasticity concept which referred to various points of the demand curve at a single point in time. A shift in the curve whether to the left or right shows that there is a change caused by some factors (internal or external) resulting in different sets of demand of various prices for a product.

2.4 THE EFFECTS ON CONSUMPTION LEVELS

Customers will accept a basic price for any commodity but will be prepared to pay more for added benefits. Therefore companies should try to provide the benefits at minimal cost to keep profits high or use the reduced benefits approach to attract buyers.

According to (Lowell Johnson) he explained that it’s important for marketers to analyze consumer behavior for several reasons. i.e. The way that customers behave towards a firm’s marketing strategy or strategies house a great impact on its success. A major component of the marketing component is that a firm should create a marketing mix that satisfies customers. By gaining a better understanding of the factors that influence consumer behavior, a marketer is in a better position to predict how customers will respond to a company’s marketing strategy.

According to (Philip Kotler) a customer will pay more for what they consider to be of good value but only if the price reflects the value ascribed that is any aspect that is considered Important to the buyer either in the form of quality, delivery, image, etc. if the manufacturer does not recognize the obvious asset, and do not raise their prices accordingly, this failure to recognize competitors advantage can lead to loss of market share.

According to (Frances Brassington and Stephen Pettit), it should not be forgotten that groups of potential customers with common attributes or interests are still made up of individual perceptions and handling of the decision-making process, such as personality, perception, learning, motivation, and the impact of attitudes. Therefore all human beings (consumers) react to the physiological influence to conclude to buy a certain product basing their judgment on personality and perception.

(Frances and Pettit) states that individuals are influenced to a greater extent, by the social and cultural climate in which they live. Therefore purchasing decisions will be affected by group members as these social-cultural influences may help individuals to;

Differentiate between essential and non-essential purchases.
Foresee the post-purchase implication of their decision.
Prioritize purchases where resources are limited.

All these according to (Frances and Pettit) imply that the individual's decision has much to do with ‘what will other people think’ and ‘how will I look if I buy this as with the intrinsic benefits of the product itself. These are things like social class, culture, subculture, influence groups, and family.

2.5 WEAKNESS OF THE LITERATURE REVIEW

Various weaknesses are notable in the literature reviewed. Most of the literature does not reveal whether price determinants affect the consumption levels of products, and so if so what measures are undertaken to stabilize prices.

In addition, the literature is not highly published especially on the effects on consumption levels therefore obtaining such relevant literature was difficult. This means that the researcher only used the available literature which may not be sufficient.

CHAPTER THREE

METHODOLOGY

3.0 INTRODUCTION

This chapter presents the methodology that was used by the researcher while in the field. It shows the areas and scope for the study, the target populations, data collection, instruments used, research design, and sample.

3.1 RESEARCH DESIGN

This is a case study based on the price of sugar. The actual price on price of sugar was obtained from respondents at wholesales, supermarkets, and shops in Kampala town. Therefore the research is quantitative in nature because it is looking at price and its relationship to consumption levels.

3.1.1 Approach to Inquiry

A face-to-face approach was used during the process of inquiring with self-administered questionnaires designed in an interview question format.

3.2 STUDY POPULATION

The sample population consists of supermarket attendants and wholesales around Ntinda, Wandegeya, Kansanga, Nankulabye, and Bugolobi. It also consists of several outlets within the above-mentioned trading centers whereby the respondents are customers and shopkeepers.

3.3 SAMPLE SIZE

This encompasses a representation of the respondent group consisting of customers and salespeople in supermarkets, wholesales, and shops in Kampala town.

3.4 SAMPLING TECHNIQUES

Convenient sampling was used at supermarkets and random sampling was used at various wholesales and shops in Kampala town. In addition, Interviews and use of questionnaires were also used to collect the information in the most convenient manner.

3.5 DATA SOURCE

Two sources were used and these included primary source and secondary source

The primary source involves the collection of data using self-administered questionnaires, and interviews in various supermarkets, wholesale, and shops in Ntinda, Wandegeya, Kansanga, Nankulabye, and Bugolobi in Kampala town.

Secondary sources involved collecting data from a detailed review of related published literature, journals, textbooks, newspapers, the internet, and reports on the topic under study.

3.6 DATA COLLECTION METHODS

These included interviews, self-administered questions, and observation of the respondents.

3.7 DATA COLLECTION TOOLS.

Self-administered questions designed in an interview question format were used because of their advantage like time-saving where it is a quicker means of collecting data compared to other methods and also its efficiency. The researcher also used pens, pencils, and paper.

3.8 DATA PROCESSING, PRESENTATION, AND ANALYSIS TECHNIQUES.

Before processing and analyzing the data, the researcher edited, coded, tabulated, and then analyzed it.

3.8.1 Editing.

The researcher made sure that all questionnaires from the field were properly and carefully scrutinized to check on the missing portions omissions, incompleteness, and inconsistencies. For this reason, the researcher needed to edit him/herself.

3.8.2 Coding

After editing the data, the researcher was to proceed to code it. Coding was done through the preparation of coding sheets after classifications. This was used to ensure that responses obtained are classified into meaningful forms.

3.8.3 Tabulation.

Data were analyzed using computer numerical, percentages, tables; and further analysis was carried out to relate the dependent and independent variables.

3.9 LIMITATIONS OF THE STUDY.

During the research exercise, the researcher encountered limitations as below;

Financial constraints to facilitate the collection of data from the respondents and other logistical requirements. The budget was inadequate, the researcher however made efforts to mobilize some resources and she was able to come up with this kind of work despite the limitation.
Time factor. The time available to undertake this research was not enough given the fact that the researcher had other five (5) course units to cover at the same time. It was a problem reaching most respondents but the researcher tried to overcome this problem by hiring some research assistants to assist in the collection of data.
The low response of respondents was another hindrance to the study. Some respondents were time conscious, suspicious, however, the use of questionnaires and interview methods was vital to obtain the necessary information.
Salespeople were reluctant to give sales figures for fear of exposing themselves and their profits to strangers making it difficult for the researcher to bring out the relationship between price and consumption levels based on proven figures.

CHAPTER FOUR

SUMMARY, CONCLUSION, RECOMMENDATIONS, AND AREAS OF FURTHER RESEARCH.

4.0 INTRODUCTION.

This chapter provides the summary, conclusion, recommendations, and areas of further research based on the findings revealed in the previous chapter.

4.1 SUMMARY OF FINDINGS.

The research study was guided by the following research objectives:

To find out whether there’s a relationship between price and consumption levels.
To find out whether price can increase/ decrease a company’s market share.

It was found out from the different respondents both customers and salespeople that there’s a strong commitment by the customers to Kakira sugar product. This was seen from table 6 where the number of years taken while consuming Kakira sugar brand was at 40% respectively for periods of six-year to ten years and above ten years. Also, different reasons were given as to why respondents preferred Kakira sugar in table 7 where the findings revealed that most respondents preferred it for its brand popularity

It was established that pricing has a great impact on consumption levels in terms of the number of kilograms consumed in a month, the number of visits made to supermarkets, wholesalers, and shops by customers in a week to buy sugar and sugar-related products like candy and sweets, many would consider a switch to other cheaper brands if prices were high, others who cannot take other brands would consider quitting if the prices of their favorite brand continue hiking and those who stick with the brand would reduce on their consumption rate.

It was also established that price changes would have an impact on the consumption pattern of different customers depending on the change. If it’s a decrease in price, it would lead to an increment in consumption because it is affordable and an increase in price would make customers resent the brands and accuse the salespeople of overcharging them, while some customers will be forced to switch to other brands and forced to take bags of sugar on credit hence tying up their working capital

Also through different interviews with customers, in particular, it was discovered that many would recommend their friends to start taking the Kakira sugar brands at current prices because of its sweet distinctive taste, flavor and rich golden color, affordability, and establishment in the Uganda market since 1930. This would affect the company’s performance i.e. its market share will increase as prospected. It was found out that prices affect the sale of brands the same way it affects consumption levels. It takes longer for salespeople to finish their stock because most customers have to switch to other competing/ cheaper brands.

4.2 RECOMMENDATIONS

In light of the above findings, the following recommendations would help the company to come up with a price that will keep the business running as well as maintain the customers and raise its market share which is a major objective of any business organization.

They must ensure that customers are informed and consulted where necessary about any changes and such changes have to be made before because it’s their right to be informed as stakeholders.

As we look at the advantage of selling at a higher price, business entities must ensure that such high prices are justified in terms of the usefulness, quality, and standards of the product being sold or else you stand a chance of losing out as customers may decide to give up on consuming your product or switch to another brand if they must consume the product.

Prices should be made in such a way that it provides for the promotional expenses involved in connection with advertising or personal selling as well as enticing to the channel of distribution to avoid reluctance.

4.3 CONCLUSION.

Based on the findings in Chapter four, it’s also quite true to say that price has a great impact on the consumption levels of products. Hence (Balunywa) states, the price structure of an organization should be directed towards the accomplishment of specific marketing objectives that lead to overall organizational objectives, broadly being survival and specifically to maximize profits, obtain high percentages of market share, achieve a certain rate of return, meet or prevent competition and growth of the company

APPENDIX I

REFERENCES

Lipsey R.G and Rstal (1995) an introduction to positive Economics, 8TH edition, Oxford University Press New York.
Pindyck RS, Rubinfeld D. Microeconomics, 4th edition. Englewood Cliffs, Nj: Prentice hall Inc; 1998
Lipsey R.G and Rstal (1985) An introduction to positive Economics, 6TH edition, Oxford University Press New York
Banyoya Lawrence (2003) Report on financing decentralization in Uganda, Fiscal decentralization and local revenue generation. [email protected]./doc
America industrial enterprise MIT PRESS Cambridge ma 1962.
Blunt, et al 1992 managing organizations in Africa, Walter de Gruyter New York.
Kigenyi Wansola (2007) A guide to Entrepreneurship skills development.
Lambert RC (1993) Barriers to marketing implementation in the professional services firms.
Lowell Johnson (1994) marketing management: integrated text reading and cases.
Lambert RC (1993) Barriers to marketing implementation in the professional services firms.
Philip Kotler (1998) marketing management, planning, controlling and implementation 8TH edition Prentice Hall, London.
William J Stanton and Charles- fundamentals of marketing.
Christopher et al (1994) Journal on retailing and customer service VOL.5 NO.2
Jane Ritchie and Jane Lewis. Qualitative research practice. A guide for social science students and researchers.
European Council EC (2003), Promoting entrepreneurship.
Morksevisky L (2005), Economic Policies and Investment in Africa” Harvard University Press.
Holmes F. and Husky Z. (2004). ”The Effect of Civil War on Growth of Investment IN Africa' DLU, South Africa.
Harvard K. and Ludsey P. (2005). “The Economies of Developing Countries” Journal of Economies, Pg 23-11.
Regan, V. (2003) “the implication of donation on economic development of a state, Dissertation, Harvard University.
Matovu, R. (2002) “Political Climate and Investment Growth in Africa” Makerere University.
UNDP report (2003), Constraints to the investment growth in Uganda.
Pricey, Romeo, Anu Pam (B) (2006) “Investment Opportunities in Africa”. PhD

APPENDIX II

QUESTIONNAIRE FOR CUSTOMERS.

Dear respondents,

This questionnaire is intended to facilitate the study on the factors affecting price variations and their effects on consumption levels. The information given will not be used for any other purposes apart from this study.

Please tick in the best option in the box provided or fill in the spaces provided where necessary.

1. What is your gender?

Male

Female

2. Indicate your age group.

18-20 years 21-30 years

31-40 years 41-50 years

Above 50 years

3. Please indicate your marital status

Married Single

Divorced Widowed

4. Indicate whether you are employed or unemployed

Employed

Unemployed

5. For how long have you been consuming Kakira sugar brands?

1-5 years.

6-10 years

Over 10 years

6. Why do you prefer Kakira sugar to other products?

Taste and flavor

Affordability

If any other specify………………………………………………………………………………

……………………………………………………………………………………………………

7. What is your opinion on prices?

Very high

High

Low

8. Are you comfortable with prices?

Yes

If no, please indicate the reason for your answer.

………………………………………………………………………………………………………………………………………………………………………………………………………………

9. Does your consumption level depend on the price changes?

Yes

Indicate the reason for your answer.

…………………………………………………………………………………………………………………………………………………………………………………………………………….

10. Indicate whether you could consider shifting to another brand or stop consuming sugar if the prices of Kakira sugar became too high.

Yes

Please indicate the reason for your answer above.

11. In your own opinion as a consumer, is there a relationship between prices and consumption levels?

Yes

If yes, how do the two relate?

12. What would be the ideal price for sugar and why?

Price…………………………………………………………….

why………………………………………………………………………………………………….

13. Would you recommend friends to start consuming kakira sugar at the current price?

Yes

Reason for your answer………………………………………………………………………….....

………………………………………………………………………………………………………

15. Would a change in price affect your consumption levels and pattern?

Yes

If yes, indicate how.

……………………………………………………………………………………………………………………………………………………………………………………………………………..

End of questionnaire.

Thank you for your contribution.

QUESTIONNAIRE FOR SALESPEOPLE.

Dear respondents,

This questionnaire is intended to facilitate the study on the factors affecting price variations and their effects on consumption levels. This information given will not be used for other purposes apart from this study.

Please tick in the best option in the box provided or fill in the spaces provided where necessary.

1. Please indicate your gender.

Male

Female

2. For how long have you been dealing in Kakira sugar brands?

1-5 years

6-10 years

Over 10 years

3. What is your opinion on the pricing of Kakira sugar brand?

Very high

High

Moderate

Low

4. In your opinion does pricing have an effect on your business?

Yes

If yes please give two reasons in which the pricing affects your business.

i)…………………………………………………………………………………………………

ii)………………………………………………………….....................................................

6. Does pricing affect your sales?

Yes

If yes please indicate two ways in which your sales are affected by pricing.

i) …………………………………………………………………………………………………

ii) ……………………………………………………………………………………………….

7.About how long does it take you to finish your stock or turn around your stock?

1-2 days

A week

A month

8. Indicate whether the answer above is attributed to the pricing.

Yes

9.Could a price change lead to an increase or a decrease in sales?

Yes

If yes, please explain how.

……………………………………………………………………………………………………..

10. Do price and consumption levels have any relationship?

Yes

If yes, how do they relate (give two ways).

11. Leaving other factors constant, what would be the ideal price for a kilogram of sugar that would enable you to give customers a fair deal?

End of questionnaire.

Thank you for your contribution.