PRICING AND ITS EFFECTS ON CONSUMER BUYER BEHAVIOUR

Abstract

Price is not just a number on a tag. Price comes in many forms and performs many functions, rent, tuition, fares, fees, rates, tolls, retainers, wages and commissions all may in some way be the price for some goods or services. Throughout most of history prices were set by negotiation between buyers and sellers. Bargaining is still a spot in some areas. Pricing practices have changed significantly in recent years .Consumer behavior on the other hand is ‘the decision processes and acts of individuals involved in buying and using products or services’’. This relationship shows that for a given price as perceived benefit increase, value increases. The prices of product are always is a determinant factor in the behaviour of consumer purchase as well as the success or profitability of the firm. How much to charge for a product or service? This question is a typical starting point for discussions about pricing, however, a better question for a firm to ask is - How much do customers value the products, services, and other intangibles that the firm provides? The study sort to among others, To determine how prices affects profitability of the firm, and To study how important customer are sensitive to price. The research is an experimental research, which uses variables to identify cause and effects relationship between variables. This research sort to identify the cause and effect of price and consumer behaviour, in the fast moving consumer goods market. In conclusion, The quality of a product also serves an as important reason for consumers to purchase products. it is therefore among others recommended that, There must always be communication between , retailers and consumers to monitor, if there are changes in the product performance since it can affect consumer buying behaviour.