Examining the predictors of unit price of a readymade garment in Bangladesh

ABSTRACT

Purpose- The prime objective of the present research study was to determine the antecedents of unit price for a readymade garment 'XYZ' and to investigate the influence of three variable- raw material, quality labor cost, quality cost on per unit price. Design/methodology/approach- In this study a simple random sample has been drawn constituting production manager as the sample unit. The present study used a sample of 50 RMG companies. Further, the influences of predictor variables on the per unit price has been assessed using multiple linear regression analysis. Findings-The findings in this paper supports the two variables;raw material and quality because result revealed that both are significant whereas, labor cost is insignificant. It implies that labour cost is not influencing the unit price. Research limitations/implications- The paper leads to a research question for future researchers-why labor cost is non-significant predictor of unit price? despite being very much important theoretically. Limitations of the paper include the data that is specific to Bangladesh RMG industry, therefore it cannot be generalised, further the economic meltdown due to COVID-19 pandemic might have influenced the results. Originality/value - The paper's prime contribution is based on the assessment of predictor variables and their influence on unit price of readymade garment XYZ. It is based on the estimates provided by the production manager. © 2020 Universidade do Minho. All rights reserved.