An analysis of monthly fuel price adjustments on the sales of courier service operators in selected parts of Lusaka district for the period 2020-2022.
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Date
2023
Authors
Thope, Theophister
Journal Title
Journal ISSN
Volume Title
Publisher
The University of Zambia
Abstract
Fuel prices play a significant role in the operational costs of courier service operators. As fuel prices increase or decrease, it directly affects the sales and profits of courier services due to cost of running delivery services. When fuel prices rise, courier companies experiences an increase in sales but faced higher expenses for fueling their vehicles, which can lead to increased operational costs. Therefore, this study was analyzing monthly fuel price adjustments for the sales of courier service operators. The Study was guided by Theoretical Framework using the Law of Demand Theory. This study’s approach was quantitative in that it was able to generate numerical data, which was converted into statistical analysis. Questionnaires were
used to collect data from respondents, and a simple random sampling was used to determine participants. The Chi-Square T-test was used to analyze the collected data. The first objective was to compare the demand for courier services in relation to charge prices and fuel adjustments for the period 2020-2022 in Lusaka and the study discovered that 68 (52%) indicated that it had increased, 42 (32%) said that it remained the same and 20 (15%) indicated that it had decreased. The findings suggest a positive outlook for the courier service industry in 2022, with more than half of the participants noting an increase in demand. The second objective was to assess whether courier service operators in Lusaka District are making profitable sales to an adjustment of fuel prices and the study revealed that the majority 62 (48%) believed it was very positive, while a notable percentage 25(19%) considered it slightly positive. On the other hand, there were smaller proportions who viewed it negatively, with 22 (17%) stating it was slightly negative and 9% indicating it was very negative. The minority 9 (7%) felt that there was no impact on profits due to these adjustments. The last objective was to find out the influence of fuel prices on the rate of business transactions on the Courier Services in Lusaka and the study established that 51 (39%) strongly agree, 42 (32%) agreed, 4 (3%) were neutral, 18 (14%) disagreed and 15 (12%) strongly Disagree. It can be observed that
a majority of participants either strongly agreed or agreed that the monthly adjustments of fuel prices in 2022 had an influence on business transactions due to the increase in online purchases by customers who tried to lessen transportation costs as a result of high fuel prices. The study
recommendation that courier service operators implement dynamic pricing strategies that will allow for adjustments based on fluctuating fuel prices while remaining competitive in the market. It is also recommended that courier service operators should invest in fuel-efficient vehicles to reduce operational costs and minimize the impact of fuel price fluctuations on overall expenses. It is recommended also that Government adopt a strategy for price shocks by locking the fuel price or buying in bulk when it is cheaper at the international market to avoid suppliers buying at higher prices and also re-introduce a form subsidy on fuel to caution high fuel prices.
Description
Thesis of Master of Business Administration (MBA).