Understand The Soft Drink Market Comprising Of The Students Studying

Question: Discuss about the Understand The Soft Drink Market Comprising Of The Students Studying At The USC. Answer: Introduction The objective of the given task is to understand the soft drink market comprising of the students studying at the USC. In order to facilitate the same , a survey was conducted so as to collect the data about the consumption demand of various beverages along with their respective beverage preferences and impact of price on the same. From the representative population data collected through the survey, a sample of 80 students was obtained from the original survey results through the use of random sampling. This was executed through the usage of random sampling. From the sample data obtained, various inferential and descriptive statistics techniques have been applied in order to provide answers to the various question. These have been highlighted in the following section while the relevant computations are shown in the attached excel sheer. Data Analysis Based on the sample data and the corresponding computations performed in excel, the following analysis may be carried out. Out of the given 80 students which form the sample, 72 are domestic students while the remaining 8 are international students. This implies that the proportion of domestic students in the sample is 90% while that of international students is 10% only. It is observed from the sample data that as the price of the beverage tends to increase, the corresponding consumption tends to shrink. This implies that there is an inverse relationship between the price and beverage quantity consumed by the students. The following scatter plot also highlights the same. This is in line with the law of demand and makes sense considering the fact that these are not necessary items and can be curtailed especially when the price rises. Also, the relation seems to be quite linear as is apparent from the above plot. Based on the sample data, it is apparent that the other category is the most popular considering that 33 out of 80 students have chosen the same as their most popular beverage. The least popular beverage amongst the students based on the given sample seems to be energy drinks considering that it has been voted as the least popular by 44 students out of the given 80 students. The summary of preferences obtained from sample is highlighted below. In order to check the loyalty of the students to their preferred beverage, it is imperative to analyse the proportion of students who tend to make a switch when discounts are offered to them in favour of the second preference. It is apparent from the sample data that when 25% discount is offered on the second preferred drink, then only 21.25% of the sample tends to a make a shift. However, when the discount is increased to 40%, then this value tends to increase to 55%. Therefore, it is apparent that the students tend to be not very loyal to the preferred beverage and if given reasonably high discount (40%) majority of them are willing to make a shift. Based on the given sample data, it would be fair to conclude that it seems that the domestic students are more sensitive to price in comparison with international students. The scatter plot for the beverage price quantity relationship for the international students is as highlighted below. It is apparent that the above scatter plot does show an inverse relationship but the correlation coefficient seems to be lower. The combined scatterplot tends to reflect on a more linear and uniform trend thus highlighting that the domestic students tend to have a more strong and linear relationship with regards to price and beverage quantity. The respective summary table of the preferences of the local students is outlined below. It is apparent from the above table that that the most popular beverage amongst the domestic students tends to be other with 31 out of 72 students subscribing to the same preference. With regards to the least popular drink, it is energy drinks for the domestic students with agreement of 39 students out of 72 domestic students. The summary table of the preferences of the international students is outlined below. Unlike domestic students, the most popular drink for international students is tea/coffee with 4 out of 8 students subscribing to the same preference. With regards to the least popular drink, the international students share the same view as the domestic students as the least preferred beverage. Using the given sample, the estimate has been made for the population. According to the same, there is a 95% probability that the proportion of students preferring soft drinks would lie between 7.18% and 22.82%. Summary Based on the above data analysis, various conclusions can be drawn. The university has a small proportion of international students with a high majority of students being domestic. Further, in terms of beverage consumption, an inverse relation tends to exist with price. Also, this relation tends to be less pronounced for international students as compared to domestic students. Additionally, with regards to preferences of beverage, on a combined basis, the others category is the most popular with energy drinks being the least popular. However, there are differences observed between the preference of domestic and international students as international students tend to have their most popular drink as tea/coffee. Moreover, the students in general tend to be not very loyal as at 40% discount, more than 50% students tend to make a switch from the most preferred beverage. Also, the popularity of soft drinks amongst the students seems to be low as is apparent from the population estimate d rawn from the given sample.