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THE SIGNIFICANCE OF PRICE IN CONSUMER PURCHASE DECISION IN EDO STATE
(A CASE STUDY OF MR. BIGGS PLAZA, AUCHI)
Abstract
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.
TABLE OF CONTENTS
Title Page i
Certification ii
Dedication iii
Acknowledgements iv
Abstract v
Table of Contents vi
Chapter One: Introduction 1
1.1 Background to the Study 1
1.2 Statement of the Problem 4
1.3 Purpose of the Study 5
1.4 Research Question/Hypothesis 5
1.5 Relevance of the Study 7
1.6 Scope of the Study 8
1.7 Limitations of the Study 8
1.8 Operational Definition of Terms 9
Chapter Two: Literature Review 11
2.1 Introduction 11
2.2 The Importance of Price to Consumer and Products 23
2.3 Consumer Decision Making 25
2.4 Selection of a Pricing Policy 26
2.5 Consumer Perception of Price 29
2.6 Relationship between Price and Quality 31
2.7 Brief History of Mr. Biggs Plaza 31
2.8 The Role of Advertising in the Sales of Mr. Biggs
Product (Small Business Management) 32
2.9 Summary of the Chapter 34
Chapter Three: Research Methodology 35
3.1 Research Design 35
3.2 Population of the Study 35
3.3 Sample/Sampling Procedure 35
3.4 Sources of Data Collection 36
3.5 Validation of Instruments Used 37
3.6 Method of Data Analysis 37
3.7 Cut Off Point/ Decision Rule 38
Chapter Four: Data Presentation and Analysis 39
4.1 Presentation of Data 39
4.2 Data Analysis/Hypothesis Testing 88
4.3 Discussion of Findings 92
Chapter Five: Summary of Findings, Conclusion
and Recommendations 93
5.1 Summary of Findings 93
5.2 Conclusion 94
5.3 Recommendations 94
5.4 Suggestions for Future Research 95
References 96
Appendix I 97
Appendix II 98
CHAPTER ONE
INTRODUCTION
1.1 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.
1.2 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.
1.3 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
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