IMPACT OF SALES TAX ON BUYER’S BEHAVIOR: A STUDY OF BRANDED CLOTHES IN PAKISTAN

Abstract

This study intends to look into how Pakistani customers' shopping habits are affected by sales tax, with a focus on branded clothing purchases. This study aims to provide insight on the choices made by customers when presented with various tax burdens by investigating the relationship between sales tax and consumer behavior. A mixed-method approach will be used to accomplish the research goals, including both quantitative surveys and qualitative interviews. The study will focus on a wide sample of Pakistani consumers from a range of age groups, income brackets, and geographic regions. The results of this study should provide important light on how sales tax affects consumer behavior when it comes to branded clothes. These data can help legislators create tax laws that reflect customer preferences and support the retail industry's sustainable expansion. Additionally, the findings can be used by merchants and marketers to create focused pricing plans and marketing strategies that will increase consumer happiness and brand loyalty in a tax-sensitive market. In conclusion, by analyzing the effect of sales tax on consumer behavior in relation to branded clothing in Pakistan, this study aims to add to the body of knowledge. The study's conclusions will have significance for both theoretical and practical situations, helping key stakeholders make well-informed decisions and enabling a better knowledge of consumer decision-making processes.