Beverage Industry in Pakistan PDF

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THE RELATIONSHIP BETWEEN PERCEIVED COST & CONSUMER PURCHASE
INTENTIONS

Contents
ABSTRACT..............................................................................................................................1
Chapter-1:.................................................................................................................................2
INTRODUCTION....................................................................................................................2
1.1 Background..................................................................................................................2
1.2 Problem Identification.................................................................................................3
1.3 Problem Statement.......................................................................................................4
1.4 Research Questions.....................................................................................................4
1.5 Objectives/Purpose of the Study.................................................................................4
1.6 Significance of Study..................................................................................................4
1.7 Scope of Study.............................................................................................................5
Chapter-2:...................................................................................................................................7
LITERATURE REVIEW........................................................................................................7
2.1 Perceived Price............................................................................................................7
2.2 Perceived Value...........................................................................................................8
2.3 Consumer Purchase Intention......................................................................................8
2.4 The Research Model....................................................................................................9
2.5 Hypothesis Testing......................................................................................................9
Chapter-3:...............................................................................................................................11
RESEARCH METHODOLOGY.........................................................................................11
3.1 Research Design.......................................................................................................11
3.1.1 Qualitative Research..........................................................................................11
3.1.2 Quantitative Research........................................................................................11
3.2 Purpose of Research..................................................................................................12
3.3 Research Strategies....................................................................................................12
3.4 Population of the Study.............................................................................................13
3.5 Sampling Techniques................................................................................................13
3.5.1 Probability of Representative Sampling.............................................................13
3.5.2 Non-Probability or Judgmental Sampling..........................................................14
3.6 Sample Size...............................................................................................................14
3.6.1 Sample................................................................................................................14
3.7 Instrument and Research Tool...............................................................................15
3.8 Questionnaire Design..............................................................................................15

Chapter-4:...............................................................................................................................17
RESULTS AND INTERPRETATION................................................................................17
4.1 Reliability Analysis..................................................................................................17
4.2 Correlation...............................................................................................................17
4.3 Regression Analysis.................................................................................................18
4.3.1 Testing of Mediation..........................................................................................18
4.3.2 Analysis of H1....................................................................................................18
4.3.3 Analysis of H2....................................................................................................19
Chapter-5:...............................................................................................................................24
CONCLUSIONS AND RECOMMENDATIONS...............................................................24
5.1 Conclusions..............................................................................................................24
5.2 Limitations...............................................................................................................24
5.3 Recommendations....................................................................................................25
REFERENCES.....................................................................................................................26

ABSTRACT
This study has been done to determine the relationship between perceived price, consumer
purchase intention and the perceived value and to investigate the effect of these variables.
Our study is based on the beverage industry of Pakistan. Pakistan’s beverage industry is
operating with 170 units and it has the potential to double its size in next 3-4 years. Beverage
industry is one of the fast-growing sector in Pakistan. Beverage industry is facing different
changes including high price, unavailability of sugar, taxes and excise duties. This study is
focused around three variables, perceived price, perceive value and customer purchase
intention, where price is an independent variable, customer purchase intention is dependent
variable and perceived value is a mediating variable.
Quantitative research design is used for this study because most of the previous findings
regarding to our research were also done by quantitative method and it is also the best way to
get the opinion of the respondents. Questionnaire was used as research tool and 300
questionnaires were distributed to get the response from respondents. Simple linear
regression was employed to determine whether to accept or reject the hypotheses of the
research. This study is based on two hypothesis H1 states that there is a significant
relationship between the perceived relative price and the perceived value and H2 states that
there is a significant relationship between the overall perceived value and consumers overall
purchase intention. A lot of data was collected with the help of questionnaires from different
universities and markets of Rawalpindi.Entire data was analyzed with the help of SPSS. The
results indicate that the price has a significant effect on consumer purchase intention.
Keywords:
Perceived price, Perceived value, Customer purchase intentions
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Chapter-1:
INTRODUCTION
1.1 Background
We are living in the era of competition where competition is getting stronger and stronger
day by day. Due to heavy competition organizations try their best to get more loyal customers
and to sustain them, and it is one of the most difficult tasks ever. With the increased use of
internet and social media, today’s consumers are digitally connected with each other
therefore consumer carry enough knowledge about product and services and it becomes a
difficult task for organizations to get a customer. For a long time survival in the market place,
an organization have to compete well. Therefore, organizations try to understand consumers’
buying behavior and their purchasing patterns. How they evaluate different patterns and make
their buying decisions. This study is about to examine the relationship between price and
consumer buying behavior and how price affects consumer buying behavior. This study is
focused on Pakistan’s beverage industry.
Beverage industry is one of the fast-growing sector in Pakistan. Pakistan’s beverage industry
is operating with 170 units. It has the potential to double its size in next 4-5 years with
currently having the size of over 120 million cases per annum. Pakistan’s beverage industry
is dominated with energy and sport drinks, juices, coffee, milk based drinks, carbonated
drinks, tea and bottled water. However, tea is the most liked drink in Pakistan. It is also the
tradition drink of Pakistan. Beverage industry is facing different changes including high
price, unavailability of sugar, taxes and excise duties. In 2010 Pakistan soft drink industry’s
sales growth volume was 30.5%. (Raza, 2018).
The need of the study raised with the increase in globalization and booming in internet which
made it easy for the customers to compare prices of different products offered by different
organizations. (Eman Al-Hassan & Hussain Al-Salamin, 2016). Before engaging in a
purchase intention, nowadays, a customer conducts a lot of search about a product, its price
and features. A customer wants to have all the important knowledge about a product and
about its competitive product. Internet makes it easy for a customer to collect information
about the product. After collecting all the relevant information about competitive products
and services he engages himself in a buying behavior.
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This study is focused around two variables, price and consumer buying behavior. Where
price is an independent variable and consumer buying behavior is a dependent variable. This
study will investigate the relationship between price and consumer buying behavior and how
price affects a customer’s buying behavior.
For purchasing a product or service, customer usually have expectations related to price.
These price expectations act as a reference point for a consumer to compare prices and make
purchasing decision. Usually the term reference price is used which is defined as the amount
that customer expects to pay for a product or service. (YI HSU & HUONG PHAM, 2015)
Customers are the main focus for marketing process and the benchmark to measure the
success or failure of an organization. Therefore, most of the organizations study consumer
buying behavior for their organization to be successful. (Eman Al-Hassan & Hussain Al-
Salamin, 2016).
Price is one of the components of marketing mix and is an important factor in consumer’s
decision-making process. It directly affects the customer’s purchase intention. Most of the
brands position themselves on the basis of price. Change in price affects the change in
demand of a brand, therefore implementing the right pricing strategies is one of the most
crucial task for a brand. (Ava Huang, John Dawes, & Larry Lockshin, 2017).
1.2 Problem Identification
In Pakistan, many companies started making replicas of original products, they sold it in
different cities which was very harmful for human body. Literacy rate is also low in Pakistan
and Pakistanis are very addicted to cold drinks. This study conducted to see the gap between
usage of beverages in Pakistan, perceived quality and store image. With this research we are
trying to know how customer perceived the relationship between prices perceived and
customers Purchase Intention of beverages in Pakistan.
1.3 Problem Statement
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People are becoming aware day by day and the products like beverages are the low
involvement products. In Pakistan literacy rate is also very low and Pakistanis are very
addicted to soft drinks. With this we are trying to know how customers perceived the
relationships between perceived prices and customer Purchase Intention of beverages in
Pakistan.
1.4 Research Questions
1. What will be the effect of brand image when consumer purchase any beverage?
2. Is there any relationship between perceived price and consumers’ purchase intentions
while purchasing beverages?
3. How consumer consider the quality of beverages while buying in Pakistan?
1.5 Objectives/Purpose of the Study
In this research paper, an analysis has been carried out, the research or purpose is to find out
the relationship of perceived price and consumers Purchase Intention of Beverages in
Pakistan
The more specific objectives of the study are:
1. To examine the impact of brand image on consumer purchase intention.
2. To examine the relationship between overall perceived price and perceived value in
beverages sector.
3. To examine the relationship between consumer purchase intention and overall
perceived value..
1.6 Significance of Study
This study highlights the relationship between the perceived relative prices, perceived value
and subsequently consumer’s buying intentions. Price factor is common in the Pakistan
market as many people have limited purchasing power. Perceived value is evident when
consumers think the cost of purchasing a good to be worthwhile against its advantages (Ms.
D. Oosthuizen, 2014). To enhance the buying intentions of consumers, beverages companies
have to increase the perceived value for their consumers and perceived value has a positive
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relationship with perceived relative price. Hence the buying intentions are fairly dependent
on perceived relative price in a transition economy like Pakistan.
This study will help beverage firms to analyze and further enhance their position in the
market. Throughout Pakistan approximately 170 beverage industrial units are working
(Manan Aslam, 2017) .Beverages industrial production maintained a level of $2 billion
during last year's(Manan Aslam, 2017). This study will serve the industry to better
understand the effect of price on perceived value.
1.7 Scope of Study
We all know that day by day, medical science is progressing rapidly. As in the future
prospect may be the price isn’t valuable as when it’s come to Human Health. Where
Beverage companies are earning a high profit on their products, they are also losing the trust
from their consumer in the sense of quality. The future of the beverage may go down and
some alternative may take the lead. The industries should improve the quality of products
according to Health benefits and thus providing the best quality to the consumers. As quality
improves according to Health benefits, it would affect the price and the price would affect the
consumer behavior consequently. It may become a cause of big loss for the improving the
quality or maybe it becomes a cause of gaining high profit. The best strategies for the
Beverage Industries are to focus on Health issues and providing the good quality by
maintaining its price.
As we look further if go the Coca Cola and Pepsi very well-known name in Beverage
industry. They have very tiny competitors like "Muree brewery" and "Gourmet cola". They
are providing the same prices but they aren’t able to provide the same taste as PEPSI and
Coca Cola is providing. The Price of per 1.5liter coca cola and pepsi in Pakistan is 3.5rs
Making cost. The distributer gets 1.5 litter product in 50rs.And in market the product sold to
the consumer in approximately in Rs.90. Futures of the beverage can be saved by providing
the good quality at an attractive price. In Many school and collages most of the carbohydrate
drinks are ban because of Health issues. Now a day nestle is leading in beverages cause of
good quality tetra pack juices and maintaining its price or also providing a good quality of
mineral water bottles. Our Study is to understand that how much consumers focus upon
perceived relative price, perceived value affects the consumers Purchase Intention of
beverages.
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Chapter-2:
LITERATURE REVIEW
A literature review was held in order to gain information about the relationship between the
perceived price, perceived value and consumer’s Purchase Intention to develop the
conceptual model for this study and to understand how these variables can have an impact
(positive or negative) on the beverages industry in Rawalpindi region.
2.1 Perceived Price
It's anything but a simple assignment for some individuals to settle on choices about cost.
Cost isn't just a sum that clients will be paying for burning-through any item. Cost is the most
instigating factor for purchasing an item (shoppers' view) and for acquiring benefit from
selling the item (producers' view). It is the most impacting factor in purchasing dynamic as
buyers are consistently sane on the grounds that they have a restricted pay just as a restricted
financial plan.
The apparent cost is the benefit of making the buy, which is viewed as levelheaded and
reasonable. It is the most engaged and inciting factor that states when buyers settle on buying
choices yet non-zeroed in on the genuine cost of an item. Buyers regularly consider the
genuine cost of the items by what they think the items are worth and can decide the apparent
cost as a significant factor while they are making a basic buying decision (Monroe, 2012).
Any item is constantly passed judgment on dependent on its apparent cost regarding the
advantages that an individual can achieve by settling on a specific buy choice; what buyers
would think about paying for the item; and examination of the cost and the quality
compromise to decide whether the cost and nature of the item is a palatable answer for their
needs (Monroe, 2012). The apparent cost of the item in every case straightforwardly
influences shoppers' buying expectations, and if the cost of any item is seen as unreasonable
in the personalities of the customers, at that point surely apparent worth and buy aim of the
item suffers (Schiffman, L.L., Kanuk, and Hansen, 2012).
Customers are unquestionably influenced by the cost of the item they may plan to
purchase. The degree to which buyers are influenced by the cost of the items while settling on
buying choices can be ordered as value mindfulness (East and Vanhuele, 2013).
Ishaq, (2011)Investigated corporate picture, seen worth, and administration quality
relationship in client maintenance systems in telecom area subsequently disregarded costs.
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Consequently, the current investigation is a branch of the connected writing relating to value,
quality, and worth relationship.
2.2 Perceived Value
The investigation of an item's worth is reliant upon the advantages that are acquired from buy
or utilization of the specific items, and it is likewise fundamental that retailers make an
agreeable offer to draw in the proposed shoppers (Blythe, 2013).Perceived worth is so
remarkable to every buyer's insight as their specific benefits and burdens may affect buying a
product(Liu, Brock, Shi, Chu, and Tseng, 2013).Perceived worth would generally be lower in
situations where an item is considered being a low seen cost just as in situations where items
may have a high seen price.(Monroe, 2012).
Seen esteem is dictated by assessing the apparent advantages that an item conveys, and
whether there is sufficient dependable data accessible for the buyer to settle on a precise
buying choice. This is likewise alluded to as seen obtaining esteem. In occasions where it is
hard to pass judgment on an item's quality(Monroe, 2012).
The more the cost of the item the more worth it is relied upon to convey. Zeithaml (1988)
compares esteem with cost by saying "esteem is the cost" and another significant feature was
communicating esteem as a compromise between apparent item quality and cost. It obviously
shows the connection between value, quality, and worth. She additionally contended that a
few buyers see esteem when there is a low cost and others see esteem when there is a
harmony between quality and cost. Consequently, for various customers, the segments of
apparent worth may be differentially weighted.
Seen esteem has its foundations in value hypothesis, which alludes to client assessment of
what is reasonable, right, or merit for the apparent expense of the contribution i.e., value
(Quareshi, 2017). Along these lines, there exists a connection between cost and worth.
2.3 Consumer Purchase Intention
Buy Intention is really the arrangement, made to buy items and administrations. Buy
Intention is the odds that purchasers will purchase a specific item or administration. Buy
Intention is customers' inclinations for the readiness to buy an item or service.(Sohail
Younas, Fiza Rasheed, and Anas Zia, 2015).Vicki Morwitz once expressed that showcasing
administrators generally depend on buyer Purchase Intention. The main explanation is that
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customer Purchase Intention is utilized for the forecast of future deals and furthermore
discovers that what the administrator's activity means for the shopper's buying behavior
(Morwitz, 2014). In a similar report, Morwitz explained that purchaser Purchase Intentions
are additionally significant for assessment of customer's interest for new items and
administrations. These examinations are done to survey that enough clients will purchase the
new item. There is a critical connection between buy aim and the buyer purchasing measure.
Buy Intentions are vital for promoting administrators. In the present serious climate with the
expanded information on clients about items and administrations, the investigation of
Purchase Intention needs to turn out to be more significant and convoluted. Prior to settling
on a choice about items and administrations promoting administrator cautiously investigate
the customer
2.4 The Research Model
The conceptual framework of the study is as follows
(Beneke, Flynn, Grieg, & Mukaiva, 2013)
The following hypotheses were formulated based on the research objectives:
H1: There is a significant relationship between the perceived price and the
perceived value of beverages.
H2: There is a significant relationship between the perceived value and consumers
Purchase Intention of beverages.
2.5 Hypothesis Testing
H1: There is a significant relationship between the perceived relative price and the
Perceived value.
The perceived value is link with price of the product specially in the beverages sector because
people thought that, the high-quality product must posses’ higher prices.
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H2: There is a significant relationship between the overall perceived value and
consumers overall Purchase Intention.
The consumer intention towards product is linked with the perceived value because people
buy the product with high perceived value.
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Chapter-3:
RESEARCH METHODOLOGY
3.1 Research Design
“A research design is a blueprint for the collection, measurement, and analysis of data,
based on the research questions of the study”(Sekaran & Bougie, 2013). Mainly there are two
type of researches are done throughout the world, following are two type of researches and
they are as follows
3.1.1 Qualitative Research
“Qualitative research is a generic term for investigative methodologies described as
ethnographic, naturalistic, anthropological, field or participant observer. It emphasizes the
importance of looking at variables in the natural setting in which they are found.”(American
Public University System, 2018).
3.1.2 Quantitative Research
“Quantitative methods/research emphasize objective measurements and the statistical,
mathematical, or numerical analysis of data collected through polls, questionnaires, and
surveys, or by manipulating pre-existing statistical data using computational techniques.
Quantitative research focuses on gathering numerical data and generalizing it across groups
of people or to explain a particular phenomenon.”(USC University of Southern California,
2018)
From the following type of researches, we are using quantitative research because most of the
previous findings regarding to our research were also done by quantitative method also it is
the best way to get the opinion of the respondents and also it is the better structured way
through which one can easily develop facts and enumeration to help you.
3.2 Purpose of Research
Purpose helps us to find out that what type of research method we are going to use while
doing the study. There are mainly three research methods which are being used by most of
the researchers throughout the world.
 Exploratory studies
 Descriptive studies
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 Explanatory studies
For our research purposes we will use explanatory or otherwise known as causal research.
The reason behind using it is because it will help us to know about the cause-and-effect
relationship between our variables. After every variable being analyzed, we came to know
that how one variable effects the other variable during the study.
3.3 Research Strategies
Our research strategies are concerned in using research strategies which are used by
researchers for their work and it helps them to identify the most effective way to gain data or
which strategy they will be using to find out the way for data collection. The main research
strategies are as follows:
 Experiment
 Survey
 Case study
 Action research
 Grounded theory
 Ethnography
 Archival research
We will be using survey strategy to gather data from our respondents. Survey strategy is used
to answer the questions like how, where, what, who and how much. In order to find the
answers to these questions survey occurs to be the best option for researchers, because it
gives a better trustworthy statistical outcome, it is very important for investigators to survey
people or respondents in high numbers and to be sure that they are the potential
representatives of the market which is being targeted by you. In survey, we will use
questionnaire as a research tool to gather data from the respondents. Structured questionnaire
comes out to be more beneficial for researchers while gathering data. therefore, we are
providing a clearer image of our study design, we will conduct quantitative research using
explanatory study with the help of survey strategy to get data from our selected population
through structured questionnaire.
3.4 Population of the Study
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“The population refers to the entire group of people, events or things of interest that the
researcher wishes to investigate” (Sekaran & Bougie, 2013). For example: If we want to
know about the market share of a specific area, for our product, then the population through
which they will conduct research. For them, that specific area will be there population.
As far as our population is concerned, Rawalpindi district will be our population of for
research. We choose Rawalpindi as our population because Rawalpindi was more convenient
for us to gather data, also people of this district pay are more frequent users of beverages.
3.5 Sampling Techniques
There are two types of sampling techniques being used by researchers and are as follows
 Probability or representative sampling
 Non-probability or judgmental sampling
3.5.1 Probability of Representative Sampling
“Probability sampling (or representative sampling) is most commonly associated with
survey-based research strategies where you need to make inferences from your sample about
a population to answer your research question(s) or to meet your objectives” (Saunder,
Lewis, & Thornhill, 2007). Probability sampling process is divided into different four stages
 For selecting a sampling frame, researchers have to find the appropriate sampling
frame that meets the objective of the research.
 To decide the best suitable size of sample.
 Use best sampling technique and sample.
 Check that the sample is the best representative of the whole population.
This process helps in doing best probability sampling. For the selection of the best sampling
frame that better explains the sample size required, researchers need to choose the most
suitable sampling technique to gain representative sample. These are the five techniques
which are used to select a probability sample
 Simple Random Sampling.
 Systematic Sampling.
 Stratified Random Sampling.
 Cluster Sampling.
 Multi-stage Sampling.
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3.5.2 Non-Probability or Judgmental Sampling
“Non-probability sampling (or non-random sampling) provides a range of alternative
techniques to select samples based on your subjective judgment”(Saunder, Lewis, &
Thornhill, 2007). There is a possibility that different non-probability sampling techniques can
be used because they give appropriate choices to choose cases and to answer to your research
questions in a better way.
In our study we will use non-probability sampling technique. In this technique we will use
convenience sampling. The reason behind using such sampling technique that most of the
persons are users of beverages and they also understand effect of our variables on their
purchasing behavior. Therefore, it will be appropriate for us to discover outcomes on behalf
of sample population which is available.
3.6 Sample Size
3.6.1 Sample
“A sample is a subset of the population. It comprises some members selected from it. In other
words, some, but not all, elements of the population from the sample”(Sekaran & Bougie,
2013). For example, a sample of 300 students chosen by researchers from 900 population of
students then those 300 students are a sample for their research and they accomplish their
study with 300 sample sizes and conclude results to 900 students(Sekaran & Bougie, 2013).
As sample works as a subgroup that represents the whole population. By the analysis of
sample, the investigator can create statements that are implementable or applicable to the
population.(Sekaran & Bougie, 2013).
In our research, we will use the sample size of 300 respondents. We will use the
questionnaire and distribute 300 questionnaires to our respondents to get their feedbacks for
our research. Our sample size is suitable in analyzing the behavior of Rawalpindi consumers
about how much consumers focus upon perceived relative price; perceived value effects on
the consumers Purchase Intention of beverages. We can generalize the result of this sample
on the population of Rawalpindi district.
3.7 Instrument and Research Tool
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In our research, we will use questionnaire as research tool to get response from the
respondents. The questionnaires were provided to the selected sample of the whole
population in order to understand the purchasing intentions of customer based on the
following variables. Our study used total three (03) variables in which one(01) is an
independent variable, one (1) dependent variable and one (01) mediating variable. Names of
independent variable is relative pricing. The dependent variable is consumers Purchase
Intention and the mediating variable is perceived value. As the structure of questionnaire is
concerned, we adapted questions for questionnaire from past studies and their reference is
(Ms. D. Oosthuizen, 2014). Our questionnaire contains sixteen questions (16), six (06) for
each independent and mediating variable and four (04) for the dependent variable. We will
use SPSS software for analysis. Likert scale is used in questionnaire including values form
strongly disagree to strongly agree. Questions related to all three variables have been
included in the questionnaire; each variable contains 4-6 questions.
3.8 Questionnaire Design
In our study three variables are used each variable have 4-6 questions. Our questionnaire
consists of 20 questions. Out of these 20 questions 4 questions are related to demographics of
respondents, remaining 15 are related to three variables. Perceived relative price contains 6
questions. There are also 6 questions in perceived value’s section. Purchase intention part is
consisting of only 4 questions. However, here is the further detail of questionnaire.
Question No Description
Q1, Q2, Q3, Q4, Demographic Part
Q5, Q6, Q7, Q8, Q9, Q10 These questions are related to perceived price
Q11, Q12, Q13, Q14, Q15, Q16 This section contains perceived value
Q17, Q18, Q19, Q20 These belong to purchase intention
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Chapter-4:
RESULTS AND INTERPRETATION
4.1 Reliability Analysis
Total 300 questionnaires were entered in the SPSS to find the reliability. There are three
variables in our study perceive price, perceived value and customer purchase intention. To
find the reliability among these three variables, Cronbach’s Alpha was used.
Cronbach’s Alpha No of Items
.716 16
4.2 Correlation
Perceived
Price
Perceived
Value
Purchase
intention
Perceived
Relative Price
Pearson
Correlation
1 .377(**) .205(**)
Sigma 2 (tailed) .000 .000
N 300 300 300
Perceived Value Pearson
Correlation
.377(**) 1 .421(**)
Sigma 2 (tailed) .000 .000
N 300 300 300
Purchase
Intention
Pearson
Correlation
.205(**) .421(**) 1
Sig. (2-tailed) .000 .000
N 300 300 300
** Correlation is significant at the 0.01 level (2-tailed).
This correlation analysis shows that all of our three variables are positively correlated and
there is no any negative value between these three variables. The above analysis shows that
correlation value between perceived relative price and perceived value is .377. This result
indicates that these are moderate in strength. Correlation value between perceived relative
price and purchase intention is .205 and these are also moderate in strength. Analysis of
correlation value between perceived value and perceived price has already been described. A
correlation value of .421 exists between perceived value and purchase intention and this is
also a moderate strength. For purchase intention and perceived relative price correlation value
is .205 which is moderate as well. The correlation value between purchase intention and
perceived value is already discussed.
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4.3 Regression Analysis
4.3.1 Testing of Mediation
4.3.2 Analysis of H1
In analysis of H1, R square donates the variance portion in dependent variable which is
explained by independent variable. The R-square value of 0.179 indicates that approximately
17.90% of the variance in perceived value is predicted by perceived relative price.
Model Summery of H1
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 .424(a) .179 .174 .77237
a Predictors: (Constant), Perceived Value, Perceived relative price
“F-state is used to identify the model that best fits the population from which the data was
sampled”. If f-state is higher than 3 and sig value is less than 0.05 than the model fits best and
results are more accurate and easier to believe. If we examine the table it clearly show that f-
state is 32.460 and sig is 0.000. It means model perfectly fits because it is full filling the
desired requirements.
4.3.3 Analysis of H2
An analysis of H2, R square donates the variance portion independent variable which is
explained by the independent variable. The R-square value of 0.177 indicates that
approximately 17.70% of the variance in consumers’ overall Purchase Intention is predicted
by overall perceived value.
Model Summery of H2
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .421(a) .177 .174 .77224
a Predictors: (Constant), Perceived Value
“F-state is used to identify the model that best fits the population from which the data was
sampled”. If f-state is higher than 3 and sig value is less than 0.05 than the model fits best and
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results are more accurate and easier to believe. The below table shows that the f-state value
64.037 is higher than 3 and sig value .000 is less than the 0.05. It shows that model fits
perfectly because it is fulfilling all desired requirements.
ANOVA of H2
Model Sum of square Df Mean square F Sig
Regression 38.189 1 38.189 64.037 .000(a)
Residual 177.716 298 .596
Total 215.905 299
a Predictors: (Constant), Perceived Value, Perceived relative price
Coefficient of H2
Model Unstandardized
Coefficients
Standardized
Coefficients
T Sig
B Std. Error Beta
(Constant) 1.111 .262 4.237 .000
Perceived Value .618 .077 .421 8.002 .000
a Dependent Variable: Purchase Intention
The above table states that the dependent variable (purchase intention) has .000 value of level
of significance. The required value of level of significance is 0.005. It means level of
significance of dependent variable is less than the required significance level. The value of t
8.002 is higher than the required value of ±1.96. H2 is highly accepted which means
perceived value plays a crucial role in customers purchase intentions.
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54321
Observed Value
0.1
0.0
-0.1
-0.2
-0.3
Dev fromNormal
Detrended Normal Q-QPlot of PurchaseIntentions
The Q-Q plot above tends to be more of a symmetric bell-shaped and clearly shows
evidences of large outliers mostly formed in underlying distributions.
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Chapter-5:
CONCLUSIONS AND RECOMMENDATIONS
5.1 Conclusions
The principle reason for this examination was to research the effect of cost on purchaser buy
aim. This investigation has been done on Pakistan's drink industry which is becoming
quicker. The interest for refreshments is expanding and rivalry in the drink business is getting
more grounded step by step. With high rivalry, it is getting hard for retailers to decide and see
how shopper settle on buying choices about drinks and what urge them to purchase
refreshment items. For quite a while endurance in a particularly serious climate, retailers need
to discover the buying examples of clients how they gather data about items and settle on a
buying choice. To meet the assumptions for clients all the more successfully retailers need to
painstakingly look at their objective business sectors.
The aftereffects of this investigation explain that there is a striking connection between saw
cost and saw esteem which thus has a solid positive relationship with client buy aim. The
outcomes demonstrate that the mean at the apparent cost is developed over 3.27 while the
scope of saw cost is 3.00. For saw esteem, the mean is developed over 3.34 while the reach is
3.17. For client buy aim the outcomes show that the mean is developed over 3.18 and the
reach is 4.00. The respondents showed a positive reaction for each of the three factors. Most
respondents' reactions showed that there is a huge relationship among the three factors.
On the off chance that a retailer better fulfills client needs, the drink business gives different
freedoms to retailers, the purchasers are bound to go to similar retailer to buy items once
more.
5.2 Limitations
Limitations are very important for future researchers. Short time frame was a notable hurdle
in our research and inclusion to these, only 300 questionnaires were distributed. It is not
possible to conduct a survey in whole country due to time and resource constraints therefore
generalization may not be possible. An in-depth investigation was not possible due to time
constraints; thus, a limited number of customers attributes were investigated. Apart from that,
only one category of customers was under study and other categories were missing. We use
quantitative research method for designing the questionnaire and due to this we cannot get
Page | 20

quality of findings. We gave finite number of questions and also restrict respondents to
answer the question through limited options. So, because of this we cannot get the real
feelings of customer about relationship between perceived price and consumer purchase
intention of beverages in Pakistan.
5.3 Recommendations
1. Further work can be done on other variables including quality, quantity, customers
perceived quality, beverage knowledge and consumer demographics and their
influence on perceived value and purchase intentions of beverages.
2. This research is focused on Pakistan’s beverage industry; future research can be
focused around Indian or American beverage industry.
3. Our sample size was 300, for future research to get more accurate result sample size
can be increased.
Page | 21

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