A Quantitative Study on How Consumer Confidence is affected by High Prices in Pakistan
Keywords:
Prices, Consumer, Purchasing behaviour, Consumer Decisions, Choices, Inflation, Unemployment, Consumer Confidence.Abstract
The proposed study aims to analyse about the consumer confidence and it's response by high prices in Pakistan. For the purpose of this study used annually secondary time series data for the period of 2000 - 2023. An Econometric technique “Ordinary Least Square Method” used for the data analysis. Moreover, a simple regression model is used for the estimation where is descriptive statistics shows the general summary of data while unit root test indicates that the variables are stationary at first difference. Ramsey RESET conducted to check specification error; it is clear from the result of Ramsey test there is no specification error in the model. The results of model estimation reveal negative affect of high prices on consumer confidence in Pakistan.