Finding and Analysis

Based on the survey forms that have been concluded, there are five factors that are affecting the demand of Baskin Robbins in the ice cream industry which are price of goods, atmosphere, quality, location and services. As there are also three other external factors affecting the demand of Baskin Robbins that are promotion, consumers’ income and substitute goods.

Diagram 1: Percentage of factors of demand

First of all, the highest percentage among factors of the demand is the quality of goods that is up to 50%. The quality of the ice cream must ensure to be well guarded at all times because the quality of the ice cream will significantly affect the demand of the consumers. Customers always choose what to eat carefully as they wanted to eat safe and eat healthy. If the ice cream is made using healthy recipe and from different kinds of rich ingredient, this will lead the Baskin Robbins’s ice cream to a next higher range.

Despite of the highest percentage, the less influencing factors are the location and atmosphere that is 0%. Even though that store atmosphere determines the approach behaviors and emotions of the potential consumers and also choosing a right location is important as potential consumers are targeted so that they will always go to the nearest spot to consume ice cream but these two factors are being inelastic to consumers.

In addition, the average percentage that influences the demand is the price and service. Each of these factors cover up to 20% in the pie chart. The price of the ice cream is affecting the demand of the consumers. The price of the ice cream depends on the cost of production, which in turn will determine the quantity that will be purchase by the consumers. As the price rises higher, the lower demand from the consumers (Vengedasalam, 2012). Furthermore, the crew services must also not to be neglected. Consumers will feel more delightful when they are served in the best from crew service. The attitude and smile of the crew are crucial when they are asking question to the consumers or answering them.

Based on the statistics above, consumers are more sensitive to the quality of the ice cream as it covers about 50% of pie chart. As the less factors of demand for the ice cream are atmosphere and location that are 0%.

Diagram 2: Price elasticity during promotion period

The reason of “No” is because
* Fattening
* Not the main meal
* Too expensive



Nevertheless, promotion affects the demand of the consumers as well. During the promotion period of the Baskin Robbins that are every 31st of certain months and “Pink Wednesday”, ice cream is always selling at lower price compare to the actual day. As the price goes down lower, the demands will increases (Vengedasalam, 2012). 60% of consumers will purchase ice cream if there is a promotion going on. This factor is being very elastic to the consumers as the buyers are always sensitive to price changes. 

Diagram 3: Demand for purchasing as income increases

The reason of “No” is because
* Addiction
* Health issues
* Not economical

When the income of the consumer increases, consumers’ demand for more goods and services will increase. Baskin Robbins ice cream is known as normal goods. As the income increases, the income level will also affect the demand for Baskin Robbins ice cream to increase. Meanwhile, 70% of consumers will choose not to consume more ice creams even though their income increases. People in the higher income group will tend to have inelastic demand because they become less sensitive towards price changes.

Diagram 4: Demand on cheaper closer substitues

The reason of “ No” is because
* Loyalty

The demand for the ice cream is also affected by a change in the price of related goods and the related goods refer to substitute goods. Substitute goods are goods or services that can be used in replace of another product or service. When the price of Baskin Robbins’ ice cream increases, the quantity demand for it will eventually fall and consumers will look for another alternative. 90% of the consumers will purchase others brand ice cream if the price of Baskin Robbins’s ice cream increases. Therefore, the demand is more elastic because consumers are very responsive to the price changes.