Behavioral Measurement of Young Generation towards Brand Products in Saudi Arabia: Al- Hassa Case Study (original) (raw)

The Impact of Competitive Pricing on Customer Patronage in Saudi Arabia Al-Hassa Case Study.pdf

The Impact of Pricing on Consumer Buying Behavior in Saudi Arabia : Al-Hassa Case Study

The study of consumer behavior is very challenging task. If a company wants to survive, it should be able to compete well. The main purpose of this research is to measure the impact of pricing strategies on consumers' psychology and on their buying behavior accordingly. A questionnaire has been designed, distributed and filled up by participants from Al-Hassa region. 433 responses were received from participants with 43.3% response rate, where SPSS were used to analyzed the data collected. The findings show that there is a positive relationship between prices and consumer buying behavior. It also showed that there is no statistically significant difference between the responses of individuals " due to age, gender, marital status, qualification and monthly salary " about the research's questions related to the three pricing strategies (Odd pricing strategy, Bundle pricing strategy and Discount pricing strategy) except there is a statistically significant difference between the responses of individuals " due to gender " about the odd pricing strategy. Depending on the founding results, recommendations were set to retailers and dealers. 1. Introduction There is a high competition between companies to get loyal customers and to sustain them. However, this is not an easy task for marketers, because several companies and brands compete simultaneously to sustain customers and get abundant profits. Studying consumer buying behavior has a vital role in understanding the factors that influence consumers' buying decisions. Customers are the primary focus of the marketing process and the benchmark to measure the success or failure of goods and services. Therefore, most of the companies study consumer behavior to increase the possibility of their success. Consumers take many decisions in their daily life and one of these is the buying decision. They decide to buy some products because of several reasons: in need for these products, want to try them, products are strongly recommended by others or the products will be given as a gift. However, companies in different departments such as marketing and research and development study and analyze consumer behavior to set and introduce either new product/service or to develop an existing once. For instance, companies try to study and analyze the timing of purchasing, the buying mode, purchasing quantities, and the type of products or services. From all of these efforts that have been done, the main goal is to satisfy consumers and to make them loyal. This can be done by minimizing their costs and generate maximum revenue in smarter way. Because of globalization and booming in using electronic websites and social media, which enables consumers to do comparison between products and services with their prices at the same time, marketers need smart methods to attract consumers and to compete in this global worlds. Pricing is one of 4 P's of marketing mix which they are product, price, place and promotion. Pricing is the only clear factor that produces money and provides obvious signal of success or failure of products and services. Therefore, researchers in this study chose to closely highlight this factor. Many scholars and researchers had conducted studies on consumer buying behavior. However, the purpose of this study is to evaluate and measure the impact of pricing strategies on consumers' psychology and their buying behavior at Al-Hassa. It highlights some strategies that are used by retailers to make the prices attractive to the consumers, including odd even pricing, bundle pricing and discount pricing. It also guides marketing managers with research and development mangers to get better understanding of the pricing strategies that positively affect consumer buying behavior.

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Behavioral Measurement of Young Generation towards Brand Products in Saudi Arabia: Al- Hassa Case Study (original) (raw)

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