IMPACT OF MULTIPLE PRICING STRATEGIES ON CONSUMER PURCHASING BEHAVIOR
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
IMPACT OF MULTIPLE PRICING STRATEGIES ON CONSUMER PURCHASING BEHAVIOR
Chapter one
INTRODUCTION
1.1 Background of the Study
Numerous price schemes can be seen throughout modern civilization. Whenever we turn on the television, read a newspaper, or listen to radio commercials, we are immediately exposed to several pricing tactics. These include mailboxes, the Internet, and many others.
Advertisements provide us with up-to-date information about the latest items and are an effective way for manufacturers to sell their new products. The purpose of advertising is to make people notice their items.
Because they make things so appealing, we frequently end up purchasing items that we do not truly require, especially when these advertisements are accompanied by price methods such as discounts.
Price is unquestionably one of the most important market elements (Bauer, Klieger, & Koper, 2004). The literature demonstrates that there are different pricing framing strategies.
Price framing is described as how the advertised price is communicated to the consumer (Briesch, Krishna, Lehman, & Yuan, 2002). Framing the same information in different ways can have a significant impact on customer decision-making and purchasing behaviour.
Blair and Landon (1981) discovered that consumer estimates of the advertiser’s normal pricing are greater for commercials containing a reference price than for ads without one. Kalyanaram and Winer (1995) define reference price as an internal benchmark against which observed prices are compared.
This impact can lead to increased interest in the promoted offer by raising customer estimates of the advertiser’s product savings. In a study of the impact of marketing framing on pricing expectations and decision. DelVecchio, Krishnan, and Smith (2007) discovered that framing influences consumers’ views of the promoted price and the importance they place on it.
In their first study, they discovered that when the monetary value of a promotion is substantial, pricing expectations are significantly greater when the promotion is presented as a percentage off rather than cents off.
As a result, we employ a percentage off promotion in the current study. The second study investigated if framing has an effect on post-promotion choice. The findings revealed that when the monetary value of a promotion is high, a cent-off promotion leads to fewer post-promotion options.
Customers are the centre of every business. Every business’s ability to exist depends heavily on its potential clients. As a result, any business that cannot identify and retain its clients will fail.
Businesses are springing up from all throughout Finland, expanding the scale of numerous industries. enterprises in the same industry typically have a shared target group of potential customers, therefore as the number of enterprises in that industry grows, competition for customers and, consequently, market share gets fierce (Berry, 2001).
According to a recent survey, ties between businesses and their customers are becoming increasingly fragile. Customers do not appreciate their corporate partners; instead, they express concerns about the stress, confusion, and deceptive transactions in which they are imprisoned and victimised.
Ironically, marketers do so many things to build strong ties with clients, but the majority of what they do ends up ruining those relationships (Berry, 2001, p 134).
The twenty-first century represents significant changes in the marketing techniques used by organisations and institutions to assist them remain competitive and sustainable in the unstable market in which they find themselves. Today’s consumers live in a world where purchasing goods and services is massive and ongoing (Rindell, 2008).
Need help with a related project topic or New topic? Send Us Your Topic