The Significance of Price in Consumer Purchase Decision
The Significance of Price in Consumer Purchase Decision
Abstract of The Significance of Price in Consumer Purchase Decision
The objective of this project include the examination of the importance of price in consumer purchase decision using Mr. Biggs Plaza as a case study. Other objective include how customers changes behaviour as a result of increase in price, information for this study was gotten from both primary and secondary source. This include questionnaire and personal interview held with customers and employees of the organization and data through desktop research. The research reveals that most young men and women from different communities especially the urban areas of Edo State patronize Mr. Biggs Plaza in the strategic creation where Mr. Biggs plaza are hasted. The findings show that sixty percent of the customers will reduce quality purchase whenever price increases. Meanwhile, pricing is an important business decision whereby it should not be overlooked. As a result of the problem discovered during research findings, the researcher recommended that there is need for the sales department of a pricing section in the sales department with the aim of setting price for product determine the most appropriate price, for products as they under to preparation to when they care finally with the customers.
Chapter One of The Significance of Price in Consumer Purchase Decision
INTRODUCTION
Background to the Study
The significant of price in consumer purchase decision play a vital role in marketing organization. Therefore any marketing mix price remain the only variable that generate revenue, the other three component of the products, distraction and promotion products cost. In an economic theory, will are made to understand price value and utilities are related concept. However, utilities is attributed of an item that make its capable of want (satisfaction) why review is quantitative measure worth of a product to attach other product is exchange price and better quality products or service remain wire, from the several from the firm good quality product should not be spoilt try to sell cheap. The consumer should give the price which he want and its should be noted that its not necessary cheapest price will give a consumer the maximum satisfaction.
The world price is use to be denote monetary worth of an item price value expressed items of naira and any other monetary middle of exchange may consider price to be the key activities of decision by consumer.
The significant of price in consumer purchase therefore, according to Agbonifoh (2007), consumer purchase is a method by which consumer is enable to ascertain what he/she is wisher to buy of a particular period of time. Purchase decision is the act by which increase individual is efficient select what is demanded from the seller, buying decision of consumer buying behaviour study the attitude about a consumer behave in particular market or study the attitude of consumer market. Marketing segmentation derived appoint from analysis and breaker of market into the deferent stages that can enable them select prospective buyer to or sell.
Therefore, consumer purchase decision involves that different production department assembling and delving the output of a mix of physical/facilities and mental or physical labour, sometime the customer roles relatives piscine more other they are actually involves in helling create the service product. These faction make it hard for service organization to control quality and to offer customer a consistence product from the customer perspective three distinctive characteristics of most service products are their ephemeral and experimental nature of consumer purchase in marketing may led. Role in model marketing through the purpose of crediting product awareness, employed and other customer behaviour. According to Kotler and Keller (1996), marketing is a social and managerial process by which individual and groups obtain what they need and want through creating and exchanging products and values with others. From this definition, it can be seen that marketing embraces the activities engaged into satisfy need and want. Customer satisfaction is the degree to which the product, services perceived performance matches the customer expectation. By this it is clear that product have to be designed, developed goods must be transported and stored at strategic geographical location, they may be purchased price must be portion for convenience purchase, price must be established at both wholesale and retail levels. Provision must be made for financing or credit and the risk of owing inventory must be borne until the sale is consummated and title transferred information therefore, from the perspective consumer purchase decision in marketing organization.
Statement of the Problem
Most companies do not handle price well. Common mistakes are that, pricing is too low oriented in that companies fails to take sufficient account of demand intensity and customer psychology. Price is too alter set independently of the rest of the marketing mix rather than as an intrinsic element of marketing for instance, fast food industry is as advisable for management to be conscious of how they fix price in order to encourage customer purchasing power or customer loyalty, some customer are always conscious of price difference.
Since most organization or company do not know the significant of price in customer purchase decision a study of this nature become important and hence the problem of this study put in the question is what is the significance of price in consumer purchase decision.
Purpose of the Study
The major objective of this study is to examine the way price is significant to consumer purchase decision, some of the objectives are;
1. To examine how consumer respond to purchase decision.
2. To know the price strategy the organization adopts.
3. To know the effect price play in purchasing
4. To know how difference in price affect the profit of the organization.
Research Question/Hypothesis
In order to carryout the impact of consumer purchase decision on the investigation of the significance price in researcher has some doubts of questions which are itemized below;
1. How does a consumer respond to increase in price?
2. What effect does price play in purchasing?
3. What pricing policy does the organization adopt?
4. How does the difference in price affect the profit of the organization?
5. Does price determine the quality of a consumer?
The following research hypotheses are hereby formulated to be tested;
Hypothesis One
HO: Consumer do not respond to increase in price.
HI: Consumer respond to increase in price.
Hypothesis Two
HO: Price have no effect in purchasing decision.
HI: Price have effect in purchasing pricing policy.
Hypothesis Three
HO: The organization does not adopt pricing policy.
HI: The organization adopt pricing policy.
Hypothesis Four
HO: Difference in price does not affect the profit of the organization.
HI: Difference in price affect the profit of the organization.
Hypothesis Five
HO: Price does not determine the quality and quantity of a consumer.
HI: Price determine the quality and quantity of a consumer.
Relevance of the Study
The importance of the study on consumer purchase decision cannot be overemphasized through there has been a lot of misconception of the above, but this research work is considered relevant in that, it criminate such misconception, this topic under study is to great relevance.
1. The consumer in the sense that it will enable the consumer know the worth or quality of a product in comparison with the price fixed. Secondly, price is also of relevance of the consumer become help in the determination by the quality of a product to be purchased by the consumer.
2. To the development of the firm when appropriate method of pricing being used based on the result of the research.
3. The quality of researcher for an award certificate in the programme.
4. To broaden the knowledge of the researcher about the subject matter.
5. To create an avenue for other scholars to enrich the knowledge.
6. It enable the consumer to know the price each goods can be obtain in the market.
Scope of the Study
The project work is aimed at examining the extent to which price is significant to consumer purchase decision. Realizing the financial and time constraints associated with this type of study. it is therefore limited to the management staff of Mr. Biggs Plaza enterprise Auchi.
The study will therefore explore the business activities and operation of the industry with a view to determine the extent to which they have applied prices as out of the marketing mix variable.
Limitations of the Study
Due to the shortness of time and limited period allocation for the writing of this project, the researcher couldn’t thoroughly carryout a more detailed and elaborate work. Besides, continued lecture, assignment and test did not make it an easier task.
Finance is another limiting factor which hindered the traveling to universities and polytechnics in search for effective work.
Absence of current published materials such as journals and publication related to the effect of the research.
With all these put together, there was no way the research could escape any of this project work. nevertheless, the best was still put in place using the available materials.
Operational Definition of Terms
1. Price: Is a value or sum of money at which as supplier of a product or service and buyer agree to carryout an exchange transaction.
2. Demand: This is the amount or quantity of goods and service which a product is willing to buy coupled with the ability to pay a given price, at a particular time.
3. Supply: This is the quality of a given commodity or service which a product offers for sale over a period of time of a particular market place.
4. Satisfaction: This is the amount of goods and service that a consumer is willing to buy at a given time.
5. Rational Consume: They are those that know what the effectiveness of the various goods and service in attaining those goals.