The Difference in Price Elasticity by Serving Size and Region at Instant Noodle Market in China

The purpose of this research is to identify the differences in price elasticity among pack-size within Fast Moving Consumer Goods(FMCG) in China. To achieve the purpose of this research, the sales volume and price data from scanner data in instant noodle category in Beijing, Shanghai, and Guangzhou were collected and analyzed. The results from empirical analysis with price response function showed that the differences in the price elasticity among the different pack-size are clearly existed at the same brand. Especially, mid-sized pack showed low price elasticity, which is suggesting that mid-size pack should avoid the price promotion. Furthermore, some different price elasticities are found for the same pack-size in different brands among the different regions, suggesting that marketers should consider pack-size variable to set a price at a given region at noodle category in China.