SIGNIFICANCE OF PRICE IN CONSUMER PURCHASE DECISION IN EDO STATE
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SIGNIFICANCE OF PRICE IN CONSUMER PURCHASE DECISION IN EDO STATE
Abstract
The goal of this project is to investigate the role of pricing on customer purchasing decisions, utilising Mr. Biggs Plaza as a case study. Other objectives include how customers’ conduct changes as a result of price increases. Information for this study was gathered from both primary and secondary sources.
This includes a questionnaire and personal interviews with the organization’s consumers and staff, as well as data obtained from desktop research. According to the research, the majority of young men and women from various communities, particularly in Edo State’s urban areas, patronise Mr. Biggs Plaza in the strategic creation where Mr. Biggs Plaza is located.
According to the research, 60% of buyers will cut their quality purchases when prices rise. Meanwhile, price is a critical business issue that should not be disregarded.
As a result of the problem discovered during the research findings, the researcher recommended that the sales department establish a pricing section with the goal of determining the most appropriate price for products as they are prepared to be sold to customers. Chapter one
INTRODUCTION
1.1 Background for the Study
The importance of price in consumer purchasing decisions is critical in marketing organisations. As a result, the price of any marketing mix remains the only variable that generates income,
while the other three components of the product, distraction, and promotion, cost. In economic theory, will is used to comprehend price value and utility, which are related concepts.
However, utilities are attributes of an item that make it capable of wanting (satisfaction), which is why review is a quantitative measure of the worth of a product to attach to other products is exchange price and better quality products or services remain wire, from the several from the firm good quality product should not be spoilt try to sell cheaply.
The consumer should pay the price he desires, and it should be remembered that the lowest price does not always result in the highest level of happiness.
The term “world price” refers to the monetary value of an item stated in naira, and any other monetary system of exchange may regard pricing to be one of the most important factors in customer decision-making.
The significance of pricing in consumer purchases. Agbonifoh (2007) defines consumer buying as a way by which a consumer can determine what he or she wants to buy at a given time.
Purchase choice is the act of increasing an individual’s efficiency in selecting what is demanded from the seller. Consumer buying behaviour is the study of an individual’s attitude towards a consumer’s conduct in a specific market. Marketing segmentation is the process of dividing a market into several stages in order to identify prospective buyers or sellers.
As a result, consumer purchasing decisions involve different production departments assembling and delving the output of a mix of physical/facilities and mental or physical labour, and sometimes the customer’s roles are relatives, and other times they are actually involved in helling create the service product. These factions make it difficult for service organisations to manage quality and provide consistent products to customers.
Three distinguishing qualities of most service products are their transitory and experimental nature, which may lead to consumer purchases in marketing. Role in model marketing aimed at crediting product awareness, employment, and other customer behaviour.
According to Kotler and Keller (1996), marketing is a social and management process in which individuals and groups achieve what they require and desire by generating and exchanging products and values with others. According to this definition, marketing includes efforts that satisfy need and want.
Customer satisfaction is the degree to which the product or service’s perceived performance meets the customer’s expectations. As a result, it is evident that products must be created, developed, and transported and kept in strategic geographical locations before they can be purchased.
Prices must be set at both the wholesale and retail levels. Provision must be provided for financing or credit, and the risk of owing inventory must be absorbed until the sale is accomplished and title transferred, from the standpoint of consumer buy choice in marketing organisation.
1.2 Statement of Problem
Most businesses do not handle pricing well. Pricing is too low-oriented, which means that businesses fail to account for demand intensity and customer psychology. Price is too often set independently of the rest of the marketing mix rather than as an intrinsic component of marketing.
For example, in the fast food industry, it is important for management to be mindful of how they set prices in order to encourage customer purchasing power or customer loyalty; some customers are always aware of price differences.
Because most organisations or companies do not understand the importance of price in customer purchase decisions, a study of this sort becomes necessary, and thus the problem of this study is to determine the significance of price in consumer purchase decisions.
1.3 Study Purpose
The primary goal of this research is to investigate how pricing influences customer purchasing decisions. Some of the aims include:
1. Investigate how consumers respond to buying decisions.
2. To understand the organization’s pricing strategy.
3. To understand the role price plays in purchasing.
4. Understand how price differences effect the organization’s earnings.
1.4 Research Question or Hypothesis
In order to carry out the impact of consumer purchasing decisions on the investigation of the significant price, the researcher has various doubts of questions, which are listed below:
1. How does a consumer respond to price increases?
2. How does price influence purchase decisions?
3. What pricing policy does the organisation implement?
4. How does the pricing difference effect the organization’s profits?
5. Is a consumer’s quality determined by price?
The following research hypotheses are proposed to be tested:
Hypothesis One.
HO: Consumers do not respond to price increases.
Hello: Consumers respond to price increases.
Hypothesis Two
HO: Price has no effect on purchase decisions.
Hello: Price has an effect on purchasing pricing strategy.
Hypothesis Three
HO: The organisation does not have a pricing policy.
Ho: The organisation has adopted a price policy.
Hypothesis Four
HO: Price differences do not effect the organization’s profit.
HI: Price differences effect the organization’s earnings.
Hypothesis Five
HO: Price does not determine a consumer’s quality or quantity.
Hi: Price determines a consumer’s quality and quantity.
1.5 Relevance of the Study
The impact of the study on consumer purchase decisions cannot be overstated, as there have been many misconceptions about the above, but this research effort is regarded relevant because it criminalises such misconceptions, and the topic under study is of enormous concern.
The customer in the sense that it allows the consumer to determine the value or quality of a product in relation to the fixed price. Second, price is important to the consumer since it helps determine the quality of a product to be purchased.
To the firm’s development when a suitable pricing approach is utilised based on research findings.
The quality of the researcher for an award certificate in the programme.
To expand the researcher’s knowledge of the topic issue.
To provide an opportunity for other scholars to enrich their expertise.
It allows the consumer to know what price each item may be obtained in the market.
1.6 Scope of Study
The project’s goal is to determine how much price influences customer purchasing decisions. Recognise the financial and time limits connected with this type of research. As a result, it is only available to the management team of Mr. Biggs Plaza in Auchi.
The study will therefore investigate the industry’s business activities and operations in order to establish the extent to which prices have been used as a marketing mix variable.
1.7 Limitations of the Study
Due to time constraints, the researcher was unable to complete a more detailed and elaborate work. Furthermore, the ongoing lectures, assignments, and tests made the task more difficult.
Another limiting element has been the cost of travelling to universities and polytechnics in pursuit of effective work.
Absence of recently published resources such as journals and publications on the impact of the research.
With all of these factors combined, there was no way the research could avoid any of the project work. Nonetheless, the best possible solution was implemented with the materials available.
1.8 Operational Definitions of Terms
1. Price: The value or sum of money at which a supplier of a product or service and a customer agree to conduct an exchange transaction.
2. Demand: This is the amount or quantity of products and services that a product is willing to buy, as well as the ability to pay a set price at a specific time.
3. Supply: This refers to the quality of a commodity or service that a product delivers for sale in a specific market throughout time.
4. Satisfaction: This refers to the quantity of goods and services that a consumer is willing to purchase at any particular time.
5. Rational Consume: They are individuals who understand the usefulness of various goods and services in achieving their aims.
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