Discount pricing in business and customer perception of the quality of soda brand: a case of coca cola kwanza products

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University of Dar es Salaam
The aims of this research was to investigate on how customers perceive the quality of discounted soda brands. The research was developed from readings in various sources of existing literature on pricing discount that has facilitated formation of the research problem and research hypotheses. The study conducted involved the case of Coca cola Kwanza Ltd. A sample of 71 customers and 59 agents were obtained out of targeted 80 customers and 60agents. Quantitative methods of analysis were used to categories respondents in order to get their characteristics. The study used Analysis of Variance (ANOVA) and Chi-Square. The research findings indicate that discount pricing given to wholesalers and retailers increase sales leading to market share growth. It was also found that discount pricing is a good business strategy which CCK should use to achieve its marketing objectives whether to increase sales volume, or increase market share and to acquire more revenue. The study showed that customers saw no difference in quality between discounted and non discounted soda brands. The results suggests that CCK has to offer occasional price discounts while looking as to why there is an increase in sales volume regardless of customer royalty and quality being constant during discount period. Therefore, CCK should continue to produce good quality soda brands if possible improve the quality of these brands. The research is a good asset for business practitioners who want to invest into beverage industry as they need to understand the consumers' perception and employ different marketing efforts to serve them accordingly.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HG4028.P35)
Business valuation, Capital investment, Capital assets pricing model
Pallangyo, N. (2006) Discount pricing in business and customer perception of the quality of soda brand: a case of coca cola kwanza products, Master dissertation, University of Dar es Salaam. Dar es Salaam.