BAP21 Financial Accounting Theory Group Research Project Assignment

BAP21 Financial Accounting Theory Group Research Project Assignment

BAP21 Financial Accounting Theory Group Research Project Assignment

Introduction

A close study is made on the number of students in the university, the number of local and international student, their choice of soft drink, level of loyalty etc. comparison between the choices of the foreign and international student and their choices.

BAP21 Financial Accounting Theory Group Research Project Assignment

Data Analysis

Section A

Basic Analysis

Among each 100 students 83 are local and 17 are international students. That is 83 per cent students are local and 17 per students are international.

The quantity and the price of the cold drinks have a negative correlation in this scenario. An increase in price decreases the amount of consumption. The correlation is -0.93194. This stat follows the regular pattern of the price and consumption equation.

Among the popularity of the drinks the coke holds the first position. The second position is held by the Pepsi products. Other soft drinks are in the third position. Energy drink of random choice holds the last position. So it can be said that in first position coke is the most popular drink among the students of SCU and the energy drink is the least favourite.

In general there is a certain level of loyalty among the students of the university regarding the choice of their drinks. This can be safely said because in case the other soft drink gets 25 per cent cheaper than the drink of their choice there is not going to be any change the purchase pattern of the students. Even if the other drinks become 40 per cent cheaper than the drinks of their choice there is not going to be any shift in preference among the student. Now in case the other soft drinks becomes a staggering 60 per cent cheaper than there is going to be a certain amount of change. That is a shift in purchase can be observed in 55 per cent of students. This data indicates that the market of SCU is not much price sensitive, with a small amount of change in the price doesn’t brings a huge amount of change in the purchasing pattern of the students.  

Section B

The behaviour of Local student vs. International Student

The demand price relationship both follows the established pattern of demand and price in both the cases of local and international student. The difference in among the local and international student is also not much. The local students correlation to price is -0.94987 and international student has 0.85464. The local students are a bit more sensitive to increase in price. But the difference in negligible the difference is merely negative 0.09523.

Among the local student the most preferred drink is Coke and the least preferred drink is the energy drink of choice. In case of the international student the result is slightly different. Among the international student there is a slight change. Among the international student there is a tie among the coke and the Pepsi in the highest position. In the lowest position just like in most cases energy drinks of choice remain steady. So there is a bit of difference in the favourite drink of the international students in comparison to the local students but the lower end of the choice remains the same.

Change in preference due to price among international student

In case of international student, with a reduction in price by 25 per cent only 2 out 17 students will change their preferred brand of soft drink that is approximately 11 per cent change. In case of a 40 per cent reduction in pricing the change in price will be approximately 23 per cent. In case of 60 per cent reduction in price the per cent of student who will change is 11 out of 17 that is 64 per cent of student who will change their brand.

Change in preference due to price among local student

In case of local students with a reduction of price of soft drink brand other than those of their choice the changes will be as follows. In case of 25 per cent reduction in price of other soft drink brand 12 per cent students will change their brand loyalty. In case of 40 per cent reduction in price 26 per cent will change their choice and in case of 60 per cent reduction 51 per cent will change their brand loyalty.

Now let’s compare the loyalty of the local students with the international students. In case of a 25 per cent reduction in price of the other brands 11 per cent foreign students will change their brand loyalty whereas 12 per cent of local students will do the same. In case of 40 per cent reduction 23 per cent foreign student and 26 per cent local students will change their brand preference. And in case of 60 per cent 64 per cent foreign students will change and 51 per cent Indian students will change their choice.

The brand loyalty of both international and local students doesn’t have much of a difference but the local students are in more loyal to their brand in comparison to the international students. 

Section C

Advance Scenario

Advance Scenario

Total number of students in ABC University in the BAC21 class total 232 students is there among them 192 are local students and 40 international students. If a random pick is made the chances of a local student is picked is 0.818966. And the chances of an international student being picked are 0.181034.

Pepsi or coke in comparison

The chances of a student of BAC21 choosing Pepsi or coke in comparison to other drink is 52 per cent.

Pepsi claims that the share of their soft drink is 25 per cent of the total demand. The claim at 95 per cent confident level is 28 per cent which is more than 25 per cent that is their claim.

Summary

To conclude we can say that there is more number of local students in comparison to international student. The other choices like least preferred drink, affect on consumption due to price is more or less similar between the local and the international student. Only few differences are there that is the brand loyalty of locals is bit more in comparison to the international student and the brand Pepsi has an equal status to that of coke in the eyes of the international student.