An Assessment of Consumer Response towards Price Discounts in Faisalabad City

Abstract

Marketing has been changing worldwide. Several economic reasons coupled with new trends are shaping new practices. Firms are taking bold steps to gain profit. Among the various options, pricing/discount is one of them. This research will focus on effect of pricing/discount on consumer purchase intentions. Firms offer big pricing strategies/discount to gather more and more customers around and they offer discounts in different forms. Some researchers believe that loyal customers are not affected by the change in price while others argue that repeat customers look closely at pricing. In this study major shopping malls in Faisalabad were selected. For the purpose of data collection 200 respondents were selected conveniently. To analyze the collected data SPSS (Statistical Package of Social Sciences) was used. The results of this study found that store image, perceived price, perceived quality and customer satisfaction have positive relationship with purchase intention in terms of price discounts. The investigation of this study will provide the information to the policy makers in retail sector will lead to increase the number of customers as well as retain the existing customers. The perceptions of customers are not only about prices but also on quality as well during price discounts. So, brands should focus on quality while presenting price discounts. Along with the perception about price and quality store image also plays a vital role to satisfy the customers which ultimately leads to purchase intention. However, this study has succeed its aims, goals and contributions, there are also some certain limitations of the research. Due to the time duration and study research had limitations which include such as the use of cross-sectional way, survey method design and also sampling technique of non-probability convenience, as well as this research was also limited to no of demographic variables which were utilized to check the individual differences among customers. Researchers may be considering these limitations as the best guidance for this study in the future.