| Pub. Date | :Feb, 2019 |
|---|---|
| Product Name | : The IUP Journal of Marketing Management |
| Product Type | : Article |
| Product Code | : IJMM31902 |
| Author Name | : Swati Baishya and Munin Kakati |
| Availability | : YES |
| Subject/Domain | : Finance |
| Download Format | : PDF Format |
| No. of Pages | : 38 |
The purpose of the study is to understand the area of reference price based on previous literature and to assess the current state of knowledge relating to pre-purchase price quality perception and how price features contribute to selection of a particular model in a product line with special emphasis on the automobile sector. Acceptable price range or the reference price is the price that the buyer has in his/her mind, which will be used as a yardstick for making a purchase. A 2 × 4 factorial design with three dependent variables was used in an experimental setup to test the hypotheses formulated based upon behavioral research. The results indicate that while the price characteristics of a product line influence consumer evaluations of a product model within the line, the price characteristics do not operate independently; rather, they interact. Further, the study suggests that several dependent variables that are usually considered separately in price research are actually dimensions of similar constructs. Examining the issue of product-line pricing from a behavioral perspective, this experiment suggests that understanding price perception is the key for developing an effective marketing strategy.
Consumer behavior is a key area for the marketers. Understanding consumer behavior helps the marketer understand how the consumer thinks, feels about different products or brand, how alternative product affects choice and what is the impact of environmental factors like family, peers, salesman, etc. Factors like social, cultural and psychological are out of control of the marketer, which makes consumer behavior more complex, and also makes the understanding of the same more important (Monroe and Chapman, 1987).Consumers often use various kinds of cues or types of information in evaluating a product before making any purchase. Of the various types of information that consumers use, price has been one of the most frequently examined in marketing, primarily due to its significant implication for both consumers and marketers.