Assignment 3-UU-MKT-2000-Marketing

Price Impact on Consumer
Behaviour
Name: MARTIN STANLEY KAMANGA

Student ID number: R2212D15689157
Module Name: MARKETING
UU-MKT-2000-ZM
1
Introduction
In this dynamic era of Marketing revolution, there has been quiet a big impact of
price on consumer behaviour which entails that the price for any product or
service is the crucial part of any market or business be it shopping mall or stores.
Price is the amount of money that people can pay for a product or service.
However for any product or service that is overvalued and overpriced consumers
may leave it for another person to buy and opt for other stores which in turn
negatively affects the business or company and the consumer purchase
behaviour.
Different shopping malls, businesses and companies have their own way of
setting prices for their products. As one of my colleague embarked on a shopping
journey to different shopping malls and stores in Lilongwe Township. I had a
chance to focus on his buying behaviour of which I was astonished of the
findings thereon. He kept on looking for items in different stores whilst on the
other side checking the prices trying to see if he could afford purchase of the
available items. Due to this I found that shopping malls or stores have different
prices depending on their price strategies, knowing the behaviour of consumers
in relation to the purchase is very important as it affects their decision to buy a
product or service. “Consumer purchase decisions is the study of how individual
customers, groups, organization select, buy, use and dispose goods and services
to satisfy their needs and wants”. (Peter and Donnelly, 2003)
Further findings upon observing the buying behaviour of my colleague, where

that shopping malls or stores that have the right price achieve a balance between
making more sales, thereby improving their profits and revenue generation. Right
price also assist in creating a competitive environment through development of
effective price strategies and in turn keeping more market shares, and to
accomplish the same a company or business can introduce a strong brand
identity and attract many potential customers. It also has to be noted that the
price strategy can positively improve a product value which influence the
consumer behaviour as a consumer thinks that the product is good better than in
other stores or competitors.
Thirdly most businesses see the need to improve their price impact consumer
behaviour relations, and gain different ways in products after acquisition of full
rights of company or business through patents and license. According to
Raeburn, A., (2022) product development process involves taking a product from
its initial concept to final market launch, this process help to breakdown the task
and organize cross departmental collaboration. Product development process
contains different stages ranging stage one to eight from early stage of idea
generation and idea screening. The product has to still undergo through the
concept development and testing, market strategy development, business
analysis, product development test, marketing and pricing together with the last
stage of commercialization. All the above mentioned stages in the product
development process have to be appreciated and put to practice before the
product is set to be distributed in different markets.
2
Impact of Price on Consumer Behaviour
As the main focus herein consumer behaviour includes their altitudes and the
whole process they undergo when making decisions about purchasing a
particular product or service. Price always stand as vital element influencing the
consumer altitude and behaviour which vary in the circumstances due to
geographical and cultural background, psychological factors, personal needs and
wants. And according to Johan, F., (2023) some impacting factors on consumer
behaviour are perceived worth, price sensitivity, pricing quality, price comparison;
Price Worth
Consumers usually assess a product or service before purchase, examining if the

product worth is in proportion to the cost. Consumer assessment and evaluations
that assist them to reach a final decision to purchase is known as perceived
value. It is also considered that consumers are always willing and able to
purchase a product or service that has a strong value in proportion to the cost.
Sensitivity of the Price
This is more concerned with how consumers react to price fluctuation. Sensitivity
of a price can be viewed at a National level and or individual experience whereby
during devaluation and inflation, prices of goods and services increase making it
difficult for consumers to purchase and to conduct business, since some
consumers are highly sensitive to both low and high prices
Products Quality
Consumers also focus on the quality of the products including their prices. The
notion herein entails that high cost are more thought to be of higher quality
products whilst items that are cheap or low are considered to be of less quality.
Comparison of Prices
As one way to plan with our budget is to check prices before the initial
commencement of the purchase. Having witnessed my colleague who was on
shopping tour, I was able to appreciate why most of the consumers indulge in
prices comparison before buying any products or service. Consumers usually opt
for shops which are fair in pricing, if a consumer suspects a comparison product
at lower cost they are likely to purchase and switch brands.
Conclusion
Wherefore consumers might be affected by many factors either internal and

external such as situational, psychological, environmental and marketing factors,
personal factors, family and culture, and if the product is already in abundance in
the market, then pricing will definitely play an important role because the increase
in price will discourage customers from buying it. Similarly if the prices are
lowered under such market conditions, the consumers will increase the amount
they purchase. Significantly proper look out before pricing product need to be
taken seriously, this enables businesses, companies to establish long term
relationships with their consumers and earn recurring revenues.
3
REFERENCES
Graves, P., (2023) Incentive Innovation: Development of new products through

consumer behaviour. https://www.frontier-economies.com
Johan, F., Laorens, N., & Liongiato, J.K., (2023, 13 th July) Impact of Price on
Consumer Buying Behaviour. https://papers.ssm.com
Paul, P.J., James, H., & Donnelly, Jr., (2003) Marketing Management:
Knowledge and Skills (7th ed). https://www.amazon,com
Raeburn, A., (2022, 1st November) Product Development Process: The 6 Stages
(with examples). https://asana.com
Schiffman, L.G., & Kawlk, L.L., (2010) Consumers Behaviour (10 th ed). Prentice
Hall.

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Assignment 3-UU-MKT-2000-Marketing

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Price Impact on Consumer

Name: MARTIN STANLEY KAMANGA

Further findings upon observing the buying behaviour of my colleague, where

Consumers usually assess a product or service before purchase, examining if the

Sensitivity of the Price

Wherefore consumers might be affected by many factors either internal and

Graves, P., (2023) Incentive Innovation: Development of new products through

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