Price changes and their effects on consumption volumes
The 200 ml. bottle of Sprite cost me Rs. 10. The 500 ml. bottle now has now moved from Rs. 20 to Rs. 25. In contrast, a few days ago, I bought a 2.25 litre Coke bottle at Rs. 50 (earlier 2 litre was at Rs. 50).
How do I, as a consumer, respond?
My 'immediate consumption' (read 200 ml.) makes a switch to fruit juices. My 'future consumption' remains with the bottle of Coke, but mind you, because its 2.25 litre at Rs. 50.
My bet is, the price change will see drops in 'immediate consumption' volumes of soft drinks, but 'future consumption' volumes may rise.