The Impact of Price Hikes on Consumer Behavior: Assessing thepurchasing habits of consumers in Trishal Upazila

Abstract

This paper focuses on the effect of price increases on the consumer behaviour with the center of study being the purchasing habits in the Trishal upazila in Bangladesh. Quantitative research design was used and data was gathered using structured questionnaire to 150 randomly selected respondents in four Union Parishads (Trishal, Balipara, Dhanikhola, and Mathbari). To examine the impact of increasing prices on consumer choices, consumption and household budgets, descriptive and inferential statistics analyses were done. The findings revealed that the majority of respondents (59%) cut down on the amount of necessary goods they bought, and others resorted to more affordable options or tried to find what other markets and the Internet offered. Rice, meat, cooking oil, and vegetables were being reported as having significant price increases which directly impacted household spending and the shopping
habits. Affordability, quality, and necessity were pointed out by the respondents as main determinants when making decisions in the case of inflationary pressures. Furthermore, they insisted on local governments to control prices, raise subsidies and promote production locally to minimize the reliance on imports. The research finds that increases have a important impact on the purchasing power of rural consumers and their market decisions, which can be helpful to policy makers and companies in designing effective measures to stabilize the economy.