Impact of Pricing on Consumer Buying Behavior

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FINAL REPORT

Method in Business Research

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The Impact of Pricing on Consumer Behavior

By:

Waseem Sajjad           60756

Muhammad Anus     7696

Hamza Shoaib          7684

Submitted to:

                             Dr. Tariq Jalees

The Impact of Pricing on Consumer Behavior

ABSTRACT

The research on consumer behavior is a very provocative task. If a company wants to survive, it should be able to compete well with other company. This research is specially done to measure the impact of design pricing on consumers' psychology and on their buying behavior. There is a positive and direct relationship between pricing strategy and consumer purchasing behavior. Price can b affect the consumer psychology. The variables are odd even strategy, discount pricing strategy and bundle pricing strategy.

Keywords: Buying behavior, bundle pricing strategy, odd even pricing strategy, discount pricing strategy, Consumer Psychology.

CHAPTER ONE: INTRODUCTION

1.1 INTRODUCTION

There is a very lot of competition between the companies to attract and get a loyal customer and to survive very sustain in the competitive world. Introduction. However, it is difficult task for marketers, because too many companies and brands compete simultaneously to sustain customers and get bundle of profits. Analyzing consumer buying behavior has a very important part in understanding the factors that influence consumers' purchasing decisions or behavior. Customers are the foremost focus of the marketing process and the standard to measure the success or failure and goods and services. Therefore, all of the organization study consumer behavior to increase the possibility of their success, sustain loyal customer and get more profit.

In practice, faced with little information or the difficulty to process it at a rapid pace, consumers may use price as a quality indicator, which may increase or decrease their surpluses (Bornemann & Homburg, 2011). Experimental evidence shows that this perception of quality may be affected by price information. For instance, by only changing prices, higher-priced aspirin is considered, on average, as more effective in “curing” a headache by buyers than a regular priced aspirin (Duke University, 2008).

Consumers take many decisions in their everyday life and one of the basic and utmost decision is buying decision. They agree to buy some products because of several reasons: in need for these products, products are strongly put forward by others or the products will be given as a gift by someone. However, the different departments in the companies such as marketing and research and development study and analyze consumer behavior to design and introduce either new product or service or to develop an existing product or service. Companies study and analyze the timing of purchasing, the purchasing behaviors, purchasing quantities, and the type of products or services. From these efforts that have been done, the main purpose is to satisfy consumers’ needs and want and to make them loyal customer. This can be done by minimizing their costs and generate maximum revenue or maximize profit in effective way.