A Review of The Effect of Pricing Strategies on The Purchase of Consumer Goods

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A Review of The Effect of Pricing Strategies on The Purchase of Consumer Goods

Abstract

This study examined the effect of pricing strategies on the purchase of consumer goods. Also examined in this research is the effect of internet (online presence) on informed purchase decision. The research intended to answer questions on the extent to which competitor's price affects purchase of products, how customers perceive the value-based pricing concept of firms and the extent to which online pricing inform customer purchase decision. This paper being descriptive and historical relied heavily on secondary sources of information. The research utilized a descriptive and historical method and relied heavily and solely on secondary instruments as sources of data. Findings from the data obtained indicate that consumers have a perception of value reflected in prices of firms’ products. It also shows that competitors price affect the purchase of firm products and that online pricing informs and affects purchase decision. This study contributes to knowledge in series of issues associated with pricing strategies and purchase decision process. This research recommends that as much as firms should focus on communicating value to customers through prices, firms should also be on the watch for competitor’s prices and examine how much it affects purchase of their products.

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