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The impact of packet size on inventory turnover of fmcg products in Pakistan [wholesaler & retailer perspective]

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  • Alvi, Mohsin

Abstract

A question arise, is there any impact of different packet sizes on consumer buying pattern. The study is focus on retailers and wholesaler perspective in Pakistan context. There are 75 respondents were include in research and handed over them a questionnaire having questions regarding with selling pattern of four different packet sizes (i.e. sachet, quarter pack, half pack and full pack) that formulated data of 300 observations (75*4) and asked them about to buy stock on monthly basis. Data converted from monthly basis to yearly basis in order to compose it into inventory turnover. Simple linier regression (OLS-Model) has been used in analyzing data. It was assumed that there is negative impact of packet size on inventory turnover. Several test has been applied on data include (Test of Sufficiency, Test for Significance and Test for Specification). Result matched with hypothesis and negative impact has been shown that represent that with reducing packet size, inventory turnover increases. Beside this it also shows that mostly people in recent context prefer to buy more sachet or quarter pack as compare to half pack and full pack.

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File URL: http://mpra.ub.uni-muenchen.de/39065/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 39065.

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Date of creation: 03 Jun 2012
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Handle: RePEc:pra:mprapa:39065

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Keywords: Packet size; Inventory turnover; Simple liner regression;

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  1. Vishal Gaur & Marshall L. Fisher & Ananth Raman, 2005. "An Econometric Analysis of Inventory Turnover Performance in Retail Services," Management Science, INFORMS, vol. 51(2), pages 181-194, February.
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