Assignment 3-UU-MKT-2000-Marketing
Assignment 3-UU-MKT-2000-Marketing
Behaviour
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)
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
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
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.