Consumption Behaviour

By Ramesh Akkineni
From an article in Business Standard

Didn’t the Rs 5 bottle drive volumes? If it gets people to drink more Pepsi, what’s the problem?

Consumption behaviour isn’t that dependent upon prices. It has to do with income, with ambience. You pay Rs 7-8 per bottle of Pepsi on the road but Rs 25 in a multiplex, you pay Rs 20 for a can of Diet Pepsi, Rs 12 for a non-returnable glass bottle of Diet Pepsi. So, once people get into a multiplex, they consume more (just 5 per cent of those going to the traditional cinemas bought cold drinks versus 70 per cent in multiplexes) and they pay more.

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