Impact of Pricing Strategy on Customer Buying Behavior

Question: Discuss about the Impact of Pricing Strategy on Customer Buying Behavior. Answer: Introduction The purpose of this study is to evaluate the impact of pricing strategy on consumers buying behavior. In this competitive era, every organization focuses on pricing strategy in order to influence consumers buying behavior (Lee 2016). There are different pricing strategies such as low pricing strategy, premium pricing strategy and price skimming that attract different group of consumers in retain industry. This study will evaluate the pricing strategy of Tesco and its impact on the consumers buying behavior and decision-making process. Problem Statement Nowadays, retail organizations are implementing low pricing strategy in order to attract consumers; however, it affects the brand value of the retail organizations negatively. Research Aim The aim of the research is to evaluate impact of piecing strategy on consumers buying behavior in Tesco. Research Objectives To evaluate the impact of pricing strategy on consumers buying behavior To assess the pricing strategy of Tesco To critically evaluate the pricing strategy of Tesco and its impact on the consumers buying behavior To provide suitable recommendation to Tesco for improving their pricing strategy Research Questions What is the impact of pricing strategy on consumers buying behavior? What are the pricing strategies implemented by Tesco? How pricing strategy of Tesco influences buying behavior of consumers? What pricing strategy should Tesco implement in order to influence buying behavior of their consumers? Literature Review The term pricing strategy refers to the marketing strategy in which an organization can set the optimum pricing for its products. An effective pricing strategy helps to influence the consumers decision-making process in an effective manner. In UK retail industry, the market competition is remarkably high (Lim, Kim and Cheong 2016). Therefore, most of the organizations have adopted competitive pricing strategy in order to improve their customer retention for new and existing customers. On the other hand, retail organizations have segregated their consumers based on buying behavior and decision-making process. The segregation is completely based on the behavioral approach of the targeted groups. For example, people belong from low socio-economic background will go for low price and people belong from high socio-economic background will go for high policing (Lee 2016). Therefore, it can be said that both the pricing strategies are appropriate for specific group of customer. Research Methodology Research Philosophy An appropriate philosophy of study will help the researcher to gather relevant information regarding the study (Silverman 2016). In this study, positivism approach will be selected. It will help to gather factual data regarding the pricing strategy of Tesco and its impact on consumers buying behavior. Research Purpose Descriptive research purpose will be selected for this study. In this process, it will be possible to understand the research variables in an effective manner (Marais and Pienaar-Marais 2016). An effective research purpose will further help to achieve the overall objectives of the research. Data Collection Method In this study, primary data collection method will be adopted. Through this process, qualitative and quantitative data collection techniques will be applied. In case of quantitative data collection process, the data will be gathered through survey process with the employees of Tesco. On the other hand, in qualitative method, interview session will be arranged with managers of Tesco. In order to conduct the literature review, data will be gathered from authentic sources such as journal, press release and books. Sample Selection In this study, 50 employees of Tesco will be selected for the quantitative method and managers of Tesco will be selected for qualitative research. Data analytical tools In order to analyze the gathered data, statistical analysis would be conducted in quantitative method. Focus group analysis process will be implemented in order to evaluate the qualitative data. Reference list Lee, H.J., 2016. Individual and Situational Determinants of US Consumers Buying Behavior of Organic Foods.Journal of International Food Agribusiness Marketing,28(2), pp.117-131 Lim, C.H., Kim, K. and Cheong, Y., 2016. Factors affecting sportswear buying behavior: A comparative analysis of luxury sportswear.Journal of Business Research Marais, H.C. and Pienaar-Marais, M., 2016, June. Analysis of Research Methodology in Business and Management Studies as Reflected in the ECRM 2015 Proceedings. InECRM2016-Proceedings of the 15th European Conference on Research Methodology for Business Management": ECRM2016(p. 167). Silverman, D. ed., 2016.Qualitative research. Sage