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Sammer Hammad

DBA Graduate - 2017

Thesis title

The Price Elasticity of Bottled Drinking Water: Evidence from Saudi Arabia


Krista Jabs-Saral
The demand for bottled drinking water (BDW) was analyzed in the three cities of Dammam, Khobar, and Dhahran, in the Eastern Province in the Kingdom of Saudi Arabia (KSA), and the price elasticity of demand for BDW for selected categories of consumers was calculated. A questionnaire was used to collect data on water price and demand across a selected random sample that was subdivided into 16 groups based on the quantity consumed (demanded) and measured by 4 categories of boxes of BDWand 4 categories of the price paid per box of BDW instead of specic quantities demanded and actual prices. These categories were labeled as low, medium, high, and extreme. Findings of the analysis suggest that price elasticity for BDW conforms to the consumer theory and is aected by water necessity in these studied water-poor countries with a growing population. Overall, the price elasticity of demand for BDW is higher in the case of a price decrease than in the case of a price increase, and it is aected by buying behavior. This study could benet governments and industry leaders in planning for the future because these examples show that current water pricing and conservation policies are not sustainable. Keywords: bottled drinking water, elasticity, KSA, survey