Price and packaging effect on taste and preference

• Main Authors: Gan, Sin Ve, Hoo, Pei Fang, Tan, Lee San
• Other Authors: Nattavudh (Nick) Powdthavee
• Format: Final Year Project
• Language: English
• Published: 2012
• Subjects: DRNTU::Social sciences::Economic theory::Microeconomics
• Online Access: http://hdl.handle.net/10356/48339
• Institution: Nanyang Technological University

With regard to examine the impact of price and packaging effect on taste and preferences, a study was conducted to examine their effects both individually and concurrently. Four sets of experiments had been conducted using descriptive research design methodology. Our experiment results described that soda with a more expensive pricing or/and better packaging is able to increase the taste expectations and hence utility of the subjects, even though both cups are actually the same coke. Results had also shown that higher utility doesn't necessary lead to higher preference towards the product. Preference, like utility is affected by price and packaging effect in a different way. For instance, although those with higher pricing or better packaging can bring higher utility, i.e. taste better, but when it comes to preferences, the cheaper one will be preferred. Furthermore, in comparison between price and packaging effect, pricing has a greater impact on the taste of soda. Such as, when the soda without pricing or with the same price but different packaging, most of them still can tell both sodas are indifferent. This may suggest that people are rational, where utility and preference is less affected by the packaging in relative to pricing.