MATHEMATICS

CARIBBEAN SECONDARY EDUCATION CERTIFICATE

SCHOOL-BASED ASSESSMENT

Candidate Name: Mercia Stanford, Akia McPherson, Ezekiel Morris,

Shellon Duke, Yahshua Embrack

Project Title: An investigation to determine whether the location of a

store affect the prices that are charged.

Topic: Consumer Arithmetic

Centre Name: Pure Masters Academy

Year of Examination: 2023

Territory: Guyana

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Teacher: Mr. Small

TABLE OF CONTENTS

ACKNOWLEDGEMENT..................................................................................................- 3 -

PROJECT TITLE...............................................................................................................- 4 -

INTRODUCTION..............................................................................................................- 5 -

METHOD OF DATA COLLECTION...............................................................................- 6 -

PRESENTATION OF DATA..........................................................................................- 12 -

ANALYSIS OF DATA....................................................................................................- 19 -

DISCUSSION OF FINDINGS.........................................................................................- 20 -

CONCLUSION................................................................................................................- 24 -

REFERENCES.................................................................................................................- 25 -

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 ACKNOWLEDGEMENT

The researcher would like to give a high note of praise and thanks to God almighty who has

blessed her with the wisdom, knowledge and understanding needed to undertake this

School-Based Assessment (SBA).

There are a number of persons who contributed and assisted in the process of creating and

completing the SBA. The researcher would also like to thank the subject teachers for the

technical support and guidance rendered for the completion of this SBA.

Appreciation goes out to the respective parents and relatives, who have provided financial

support, encouragement, guidance and fellow colleagues for their hard work, dedication

and persistence, throughout the entire process of completing this SBA.

The Researcher is filled with gratitude towards the effort, time and energy contributed by

all who would’ve played a part in the execution and completion of this SBA.

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 PROJECT TITLE

An investigation to determine whether the location of a store affect the prices that are

charged.

- Analyzing the prices of products in five different areas to determine the factors that

causes these prices to fluctuate.

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 INTRODUCTION

Location is a prominent factor in relation to business industries and their day-to-day

activities e.g. distribution of goods, export etc. But does it affect the prices charged on the

products produced? This investigation aims to answer this question. There are diverse

factors which can influence the prices levied on products as it relates to the origin of a

particular product, whereby if a market is closer to the origin of a product, the price may be

lower than a more distanced market.

The purpose of this project is to determine if the location of a business acts as a factor of

the prices charged on products. Customers would prefer to purchase from stores that are

closer to them since it is of more convenience to them. Prices may be lower if the goods

and services take part in a congested area where consumers have a number of options,

whereas businesses located in areas where consumption of goods is not at its best, may

have to raise the prices charged on products, given the fewer options of stores and the

substantial amount of money spent on transportation.

This project aims to examine how stores set prices, find out which area is more affordable

for consumers.

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 METHOD OF DATA COLLECTION

An interview can be considered to be primary data. It is a conversation for gathering data

and information where questions are asked to converse with respondents to collect data

relevant to the research topic.

The researcher conducted online interviews in five different locations namely, Berbice-

Corentyne, Georgetown, Linden, Parika and Lethem, where they would’ve asked questions

to five (5) shop owners in each location, pertaining to the research project, therefore,

primary data was collected. The researcher would’ve achieved data on the prices of the

following items; rice (10kg), flour (1kg), sugar (1kg) and milk (1kg). Primary data can be

described as data gathered from first-hand experience and collected usually from the

source.

An Interview as a method of collecting data has a number of benefits:

 Information acquired is fresh and up to date.

 Questions asked can be focused directly on the needs of the researcher conducting the

research.

 Face-to-face interviews help with more accurate screening. The interviewee is unable to

provide false information during screening questions such as gender or age.

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 INTERVIEW TO DETERMINE WHETHER THE LOCATION OF A STORE

AFFECTS THE PRICES THAT ARE CHARGED.

Dear Shop Owner,

This is an interview being administered in five (5) selected locations namely,

Berbice-Corentyne, Georgetown, Linden, Parika and Lethem, to determine whether the

location of a store affects the prices that are charged. This interview is being carried out to

obtain relevant data and information for the completion of the researcher’s Mathematics

School-Based Assessment (SBA).

It is advised that you give honest responses since this Interview possesses

confidentiality characteristics, whereby you are not required to provide your name, age, or

any other personal information to the researchers. There are no right or wrong answers.

Both questions that this interview is comprised of, are to be answered by simply placing a

tick in the check boxes provided as follows, . Thank you in advance for your cooperation.

Yours faithfully,

_________________

Researcher

Pure Masters Academy Student

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 STUDENT’S INTERVIEW QUESTIONS

1. Which of the following would you consider to be factors that contribute to the prices

charged on products?

Cost of real estate/rent

Labour costs

Hours of operation

Pressure from other local competitors

Location

Transportation costs

2. There are various pricing strategies implemented by businesses to fix the price of

particular products or services offered. Indicate which of the following pricing

strategies you apply to the operation of your business.

Penetration pricing (the price of a product is initially set low to rapidly reach a wide
range of the market)

Competitive pricing (set prices of products according to competitor’s prices)

Prestige pricing (set prices at a high level to give the appearance of quality)

Neutral pricing (set prices below the market so as to attract customers)

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 Data Collection Sheet # 1: Table showing the different prices of products sold in various

stores in the varying locations selected

Items
Location Stores $ Rice 10kg $ Flour 1kg $ Sugar 1kg $ Milk 1kg Total
Berbice-Corentyne Store 1
Store 2
Store 3
Store 4
Store 5
Total
Georgetown Store 1
Store 2
Store 3
Store 4
Store 5
Total
Linden Store 1
Store 2
Store 3
Store 4
Store 5
Total
Parika Store 1
Store 2
Store 3
Store 4
Store 5
Total
Lethem Store 1
Store 2
Store 3
Store 4
Store 5
Total

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 Data Collection Sheet # 2: The table below shows descriptive statistics for the total cost of

items in each location under study.

Locations Total Cost ($) Mean Cost ($) SD ($) Minimum Cost ($) Maximum Cost ($)

Berbice- Corentyne

Georgetown

Linden

Parika

Lethem

Data Collection Sheet # 3: Table below shows the total prices of products in various

locations.

Items ($)
Location Total ($)
Rice 10 kg Flour 1 kg Sugar 1kg Milk 1kg

Corentyne

Georgetown

Linden

Parika

Lethem

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The following tables were used to collect the data acquired by the researcher from the

Interview conducted.

Data Collection Sheet # 4: Factors that contribute to prices charged on products

Factors Tally Frequency Percentage

Cost of real estate/rent

Labour Cost

Hours of operation

Pressure from local competitors

Location

Transportation Cost

Data Collection Sheet # 5: Pricing strategies applied to business operation

Pricing Strategies Tally Frequency Percentage

Penetration

Competitive

Prestige

Neutral

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 PRESENTATION OF DATA

The following information displayed in this section of the School-Based Assessment

(SBA), entails data that was retrieved from the interview conducted by the researcher to

determine whether the location of a business/store affects the prices charged on products.

Table 1: The table below shows the different prices of products sold in the various

locations under study.

Items
Locations Stores $ Rice 10kg $ Flour 1kg $ Sugar 1kg $ Milk 1kg Total ($)
Berbice- Store 1 1,980 235 200 1,080 3,495
Corentyne
Store 2 1,980 240 280 1,220 3,720
Store 3 1,960 280 220 940 3,400
Store 4 1,940 230 200 980 3,350
Store 5 1,980 240 240 1,000 3,460
Total
Georgetown Store 1 1,900 280 240 900 3,320
Store 2 1,860 260 240 920 3,280
Store 3 1,920 300 260 960 3,440
Store 4 1,980 280 280 900 3,440
Store 5 1,900 240 260 980 3,380
Total
Linden Store 1 1,900 280 300 890 3,370
Store 2 1,850 300 320 900 3,370
Store 3 1,880 260 280 920 3,340
Store 4 1.920 280 350 880 3,430
Store 5 1,900 240 280 860 3,280
Total
Parika Store 1 1,980 440 360 1,200 3,980
Store 2 2,000 400 400 980 3,780
Store 3 2,020 420 400 1,000 3,840
Store 4 2,000 460 420 980 3,860
Store 5 1,960 400 380 1,200 3,940
Total
Lethem Store 1 5,000 600 550 2,500 8,650
Store 2 4,980 640 560 1,500 7,680
Store 3 5,010 540 450 2.450 8,450
Store 4 4,860 515 500 2,280 8,155

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 Store 5 4,990 620 530 1,860 8,000
Total

Table 2: The table below shows descriptive statistics for the total cost of items in each

location under study.

Locations Total Cost ($) Mean Cost ($) SD ($) Minimum Cost ($) Maximum Cost ($)

Berbice- Corentyne 17,425.00 3,485.00 142.65 3,350.00 3,720.00

Georgetown 16,860.00 3,372.00 71.55 3,280.00 3,440.00

Linden 16,790.00 3,358.00 54.50 3,280.00 3,430.00

Parika 19,400.00 3,880.00 80.00 3,780.00 3,980.00

Lethem 40,935.00 8,187.00 379.66 7,680.00 8,650.00

Figure 1: The Line Chart below shows descriptive statistics for the total cost of items in

each location selected.

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 45,000.00

40,000.00

35,000.00

30,000.00

25,000.00

20,000.00

15,000.00

10,000.00

5,000.00

0.00
Berbice- Coren- Georgetown Linden Parika Lethem
tyne

Total Costs

Table 3: The table below shows the total prices of products in the various locations under

study.

Items ($)
Location Total ($)
Rice 10 kg Flour 1 kg Sugar 1kg Milk 1kg

Berbice
1980 250 230 1200 3660
Corentyne
Georgetown
1900 220 240 900 3260
Linden
1820 240 300 850 3210
Parika
2000 400 380 1200 3980
Lethem
4500 600 550 1500 6250

Figure 2: The Column Chart below shows the different prices of the listed products in the

selected locations.

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 5000

4500

4000

3500
Berbice
Price for Products ($)

3000
Gerogetown
2500 Linden
2000 Parika
1500 Lethem

1000

500

0
Rice 10kg Flour 1kg Sugar 1kg Milk 1kg
Quantity of Products

Figure 3: The Column Chart below illustrates the total prices for the selected products in

each location.

7,000
Total Cost for Products ($)

6,000

5,000

4,000

3,000

2,000

1,000

0
Berbice Coren- Georgetown Linden Parika Lethem
tyne

Locations

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Table 4: The table below shows the factors that contribute to prices charged on products.

Factors Tally Frequency Percentage (%)

Cost of real estate/rent | 1 6.2

Labour Cost || 2 12.5

Hours of operation || 2 12.5

Pressure from local competitors ||| 3 18.8

Location || 2 12.5

Transportation Cost |||| | 6 37.5

Total 16 16 100

Figure 4: The Bar Chart below shows the factors that contribute to prices charged on

products at the various locations.

Transportation Cost

Location
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Pressure from local competitors
Factors

Hours of operation
 Labour Cost

Cost of real estate/rent

0 1 2 3 4 5 6 7
Frequency

Table 5: The table below shows the pricing strategies applied to business operation at each

location under study.

Pricing Strategies Tally Frequency Percentage (%)

Penetration |||| 4 25

Competitive |||| |||| 10 63

Prestige | 1 6

Neutral | 1 6

Total 16 16 100

Figure 5: The Pie Chart below shows the pricing strategies applied to business operation at

each location under study.

6% 25%
6%

Penetration
17 Competitive
Prestige
Neutral
 63%

ANALYSIS OF DATA

Table 2- An analysis of the survey shows that the average (mean) costs of items were

recorded in the following areas : The mean cost of items in Berbice – Corentyne was

$3,485, while the mean cost of items in Georgetown was $3,372, furthermore, the items in

Linden had an average cost of $3,358 which was the lowest mean cost compared to the

other location, while in Parika, the items had an average cost of $3,880, and in Lethem the

highest mean cost of items was $8,187.

Figure 1-The research shows that the total costs of the various items selected in each

location investigated, were divergent, where, in Berbice-Corentyne, the total cost of items

was $3,720, while in Georgetown the total costs of the items was $3,440 which was

contiguous with the total cost in Linden, which was $ 3,370, Parika however, total costs’ of

items was $3,980 and the total costs for the items in Lethem was $8,650 thus indicating the

highest total cost out of the other locations.

Table 3- From the investigation carried out, the prices of different food items in the

different locations were identified, where in Berbice Corentyne the average price for 10kg
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of rice is sold for $1,968 while in Georgetown it is sold at an average price of $1,912. The

average price for 10kg of rice in Linden is $1,890, in Parika it is sold for the mean cost of

$1992 and an average of $4,968 Lethem. 1kg of flour is being sold at an average cost for

$424 in Parika, $272 in linden, $583 in Lethem, $245 in Berbice Corentyne and $272 in

Georgetown. 1kg of sugar on the other hand, is said to be sold at an average cost of $256 in

Georgetown, $228 in Berbice-Corentyne, $392 in Parika, $306 in Linden and $518 in

Lethem.1kg of milk is being sold for $2,118 on average in Lethem, $1,072 in Parika, $890

in linden, $932 in Georgetown and $1,044 in Berbice Corentyne.

From figure 2 it was seen that Lethem had the highest total cost of the product rice ranging

from $6000-$7000 in comparison to the other regions. Parika and Berbice had the second

highest price of the product rice at the cost of $2000 while in contrast Georgetown and

linden had the lowest cost of the product rice ranging from $1500 - $2000. The product

flour however, in Berbice, Georgetown, Linden and Parika total cost was less than $500,

while, in Lethem it was in the price range of $500-$1000 per 1kg. It was shown on the

diagram from the data collected that the product Sugar per kg total cost in Berbice,

Georgetown, Linden and Parika was also less than $500 in comparison to Lethem which

total cost for that product is the range of $500-$1000. Furthermore as it concerns with the

product milk per 1kg, the total cost in Berbice was between the price range of $1000-$1500

as well as in Parika, while, in Georgetown and linden the total cost was in the range of

$500-$1000, however in Lethem the total cost of milk amount to $1500.

Figure 3- The data shows the total cost of the selected products in each location studied was

non–identical where in Berbice Corentyne, the total cost of the products was in the range of

$3000-$4000, while in Parika the total cost of the products add up to $4000 .Nevertheless,

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the total cost of products in Georgetown was in the range of $3000-$4000 as well as in

Linden, meanwhile Lethem displayed the highest total cost of products which was in the

range of $6000 - $7000.

DISCUSSION OF FINDINGS

After conducting an investigation in various areas to determine whether the location of a

business affects the prices charged on products, the researchers have gathered information

and findings pertaining to the research project.

Cost of real estate/ rent has been considered the factor that least (6.2%) contributes to the

prices charged on products. This is due to the relief of the amount of money needed to

purchase and maintain a facility to provide goods and services. 12.5% of respondents have

stated that the cost of labour is a factor that determines the prices of products and this

maybe so, given that workers that are needed to supply the products, thus money is spent on

their wages/salaries and as a result prices would have to increase to afford payment to

workers. Another 12.5% of respondents indicated that the hours required for the operation

of the business/store, play a part in the cost of goods, given the number of hours spent by

workers, which also determines the value of labour. Pressure from local competitors is

another factor that 18.8% of shop owners consider as a factor to the prices charged on

products. This is where competitive pricing intervenes, where if the prices of similar

products sold by competitors is high, another business will sell the same product at a lower

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cost to attract a wider market. The location is another factor indicated by an additional

12.5% of shop owners that contributes to the prices charged on product. Since if the area at

which a store is located is far from production areas, the prices are set high as illustrated in

table 1. The cost of transportation has been considered by majority being 37.5% of shop

owners as the factor that contributes most to the prices charged on products, given the

money spent on fuel especially if it’s a far excursion to the destination. Also, transportation

costs make up larger share in the price of low-quality products, so that an increase in the

transportation cost will raise the price of low-quality goods proportionately than high-

quality goods.

Various pricing strategies are implemented by shop owners to the operations of their

businesses. Penetration pricing refers to a setting where initial price is lower than later as

this type is focused on cost reduction over time. It is understood that 25% of shop owners

would operate their business through the penetration pricing strategy because they are able

to attract customers, where a lower price helps a new product or service penetrate the

market. Majority of shop owners (63%) apply competitive pricing to the operation of their

businesses. This type of pricing strategy is when businesses contrive product prices based

on the prices offered by competitors, where if a competitor sells the same product at a high

price, another business will sell it at a lower price, thus gaining more customers. 6% of

shop owners use the prestige pricing strategy, which is where prices are set higher than

normal because lower prices will actually hurt sales. Shop owners apply this pricing

strategy to their business, so as to communicate quality and exclusivity to customers.

Another 6% of shop owners use the neutral pricing strategy, which is where the prices of

products are set by the general market, with the prices just at competitors’ prices, so that

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customers are relatively indifferent between the business’ product and competitor's product.

The researcher observed that the cheapest location to purchase your items from is in Linden

while it is quite more expensive when purchasing products in Lethem. Linden is the second

largest city in Guyana after Georgetown that consist of many small markets which different

pricing strategy. This is a result of transportation cost and labour cost.

Georgetown, however, is the capital city of Guyana where majority of the people lives and

where most businesses are located. The factors that affect the pricing strategy in this

location are labour cost, cost of real estate, hours of operations, location and also pressure

from the local competitors. In relation to Berbice Corentyne, the prices on products are

highly affected by the cost of transportation, the cost of real estate and location as well as in

Parika. Lethem is the most expensive city to purchase your products from in comparison to

the others being that it is located far away from the capital city and it has a minimum

amount of people living there. The factors that affects the pricing on products in this area

are as follows: cost of real estate, labour cost. Cost of transportation, location and also

hours of operation.

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 CONCLUSION

The researcher was able to achieve data and information pertinent to the purposes of the

project through interviews with shop owners, where it is a factor that determines the

location of the prices of products but is not a paramount cause. More so, based on the data

retrieved on the cost of various products in each location investigated, Lethem, which is

immensely distanced from the capital of Guyana, had the highest overall total of prices for

the products.

Majority of shop owners set prices using the competitive pricing strategy so as to gain more

customers than local competitors. It is of certainty, that the areas of research that are most

affordable for consumers to acquire goods from, are Georgetown and Linden, since the

prices of commonly used products are sold at the cheapest cost contrary to the other

locations.

The government has the capability of providing citizens in all geographical locations in the

country with the necessaries for survival, so to assist expensive locations in supplying

persons in the respective community with their needs, the researchers suggest that the

government grant subsidies to the suppliers in these locations to minimize the cost of

providing goods and services to persons in the communities.

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Bhim. J. (2018) Advantages and Disadvantages of Interview in Research.

New York: Sociology Group.

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research/

Kenton. W. (2021) Penetration Pricing. California: Investopedia. Retrieved from:

https://www.investopedia.com/terms/p/penetration-pricing

Dawson. T. (2021) Prestige Pricing Guide: Examples, Strategy and Definition. USA: Profit

Well. Retrieved from: https://www.priceintelligently.com/blog/bid/182414/how-to-

optimize-your-pricing-strategy-with-prestige-pricing

Stiving. M. (2012) What You Need to Know About Pricing. California: Investopedia.

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Khartit. K. (2020) Competitive Pricing. California: Investopedia.

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