Impact of Multiple Pricing Strategies on Consumer Purchasing Behavior in Sweet Nutrition Company in Lagos
CHAPTER ONE
OBJECTIVES OF THE STUDY
The general objective of this study is to investigate the impact of multiple pricing strategies on consumer purchasing behavior, a case study of sweet nutrition company. The specific objectives include the following:
- To ascertain the perception of consumers on if sweet nutrition company adopt multiple pricing strategies.
- To find out the perception of customers on multiple pricing strategies of the products of sweet nutrition company.
- To investigate if multiple pricing strategies influences the opinion of consumers on the credibility of sweet nutrition company.
- To examine if multiple pricing strategies affect interest of consumers on the products of sweet nutrition company.
- To determine if there is a relationship between multiple pricing strategies and consumer purchasing behavior of products of sweet nutrition company
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Fraud
According to Agwu and Carter (2014), ‗‘among the four Ps, price is the only income generator and it is the value attached to a product. Furthermore, price is the amount of money charged for a product or service. It is the sum of all the values that customers give up in order to gain the benefits of having or using a product (Kotler et al 2010). Baker (1996) noted that price is the mechanism which ensures that the two forces (demand and supply) are in equilibrium. According to Santon (1981) price is simply an offer or an experiment to task the pulse of the market. It is the monetary value for which the seller is willing to exchange for an item (Agbonifoh et al, 1998). Ezeudu (2004) argues that price is the exchange value of goods and services. Schewe (1987) defines price as what one gives up in exchange for a product or service. It is one of the most important elements of the marketing mix as it is the only one that generates revenue for the firm unlike the others that consume funds (Agwu and Carter 2014). Lovelock (1996) suggested that pricing is the only element of the marketing mix that produces revenues for the firm, while all the others are related to expenses. Diamantopoulos (1991) also argued that, ―price is the most flexible element of marketing strategy in that pricing decisions can be implemented relatively quickly in comparison with the other elements of marketing strategy‖. It is capable of determining a firm‘s market share and profitability. Kellogg et al., (1997 p.210) point out: ―If effective product development, promotion and distribution sow the seeds of business success, effective pricing is the harvest. Although effective pricing can never compensate for poor execution of the first three elements, ineffective pricing can surely prevent those efforts from resulting in financial success‘‘. Typically, pricing strategies that are investigated in the marketing literature consist of analyzing aggregated prices (Tellis 1986). For consumer goods, this is applicable unlike the several types of disaggregate pricing strategies that are utilized to promote products as favorably as possible (Eliashberg et al 1986). These consumer products usually have small prices that are paid up at once. Disaggregate pricing means paying in bits for instance reframing a ₦500 expense into ₦1.40 a day expense diminishes the enormity of the expense, and therefore, eases the decision process for the consumer. This however does not apply at all to consumer goods therefore appropriate pricing strategies which are aggregate must be adopted to ease the decision making process of consumers. Traditional pricing strategy by definition is incapable of harmonious associations, but it needs to become a more socially conscious, collaborative exercise. Bertini and Gourville (2012) stressed that businesses should look beyond the mechanics of just fixing prices they feel is suitable for product having estimated cost and profit still relevant but no longer sufficient and recognize that harmonization of the way they generate revenue can open up opportunities to create additional value. This study therefore has dual purposes which are to assess the effect of pricing strategies on the purchase of consumer goods and how the advent of online pricing interferes in the above.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain impact of multiple pricing strategies on consumer purchasing behavior in sweet nutrition company. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of impact of multiple pricing strategies on consumer purchasing behavior in sweet nutrition company
Summary
This study was on impact of multiple pricing strategies on consumer purchasing behavior in sweet nutrition company. Five objectives were raised which included: To ascertain the perception of consumers on if sweet nutrition company adopt multiple pricing strategies, to find out the perception of customers on multiple pricing strategies of the products of sweet nutrition company, to investigate if multiple pricing strategies influences the opinion of consumers on the credibility of sweet nutrition company, to examine if multiple pricing strategies affect interest of consumers on the products of sweet nutrition company and to determine if there is a relationship between multiple pricing strategies and consumer purchasing behavior of products of sweet nutrition company. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from sweet nutrition company in Lagos state. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
The study has contributed to knowledge in series of issues associated with pricing strategies and purchase decision process. Issues on price sensitivity as it affects both online and offline channels have been examined. Customers will pay more for a product if they believe it is commensurate with the value they place on the product which may be as a result of extra benefits derived or enjoyed from consumption of the product. Proper pricing strategies or a blend of strategies also increase demand. The rapid growth in technology has added more forms of pricing and has created a platform
Recommendation
Based on the paper’s conclusion, retailers and dealers are recommended to carefully study consumers buying behavior which is one of the most successful ways to know consumers’ interests when making a purchase decision and to set suitable prices to their items as pricing has a direct impact on a company’s revenue and consequently to its success. It is recommended that to segment consumer based on demographic characteristics and study carefully their needs and willingness to buy products or services. Moreover, here is an important factor that affect consumer buying behavior in positive way which is corporate social responsibility ( CSR ). If the company socially responsible and announce that the part of this payment of selected products will donate to non-profit organization or for event inside society, which will encourage consumer to select the products impulsively.
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