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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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