Business Research Methods | Impact of Price Elasticity for Demand on the Pricing Decisions

Running head: BUSINESS RESEARCH METHODS
Business research methods
Name of student
Name of University
Author note

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BUSINESS RESEARCH METHODS
Table of Contents
1. Research question and short form proposal......................................................................3
1.1 Research questions.........................................................................................................3
1.2 Short form research proposal.......................................................................................3
2. Literature review and methodology development............................................................4
2.1 Literature review............................................................................................................4
2.2 Methodology and methods............................................................................................4
Appendix B...............................................................................................................................5
Bibliography.............................................................................................................................6

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Impact of price elasticity for demand on the pricing decisions made by the organisation.
A case study of Wal-Mart, Canada
1. Research question and short form proposal
The research proposal demonstrates the impact of price elasticity for demand on the
pricing decisions made by the organisation Wal-Mart in Canada.
1.1 Research questions
The questions of the research are as follows:
 How does the price elasticity for demand impact the decisions related to pricing made
by Wal-Mart in Canada?
 Does the pricing decisions also influence the buying behaviours of consumers of Wal-
Mart, Canada?
1.2 Short form research proposal
The price elasticity for demand has always been related to the increase in price of
products or even lowering down the prices to create higher demands in the marketplace and
raise the interests of consumers to make purchases too. The products that are elastic have
been more sensitive to the price change, i.e., increase in price and due to this, with the higher
demands in the marketplace, the profit level has also increased. The consumers would deal
less once the price elasticity for demand has been increasing as the product price will increase
while they would deal more with the product once the price elasticity is lower, i.e., the price
for the product goes down to a certain extent for influencing their buying intentions and
choices (Zhang et al., 2014). His would also help he market to react to the changes in prices
and at the same time, promote good behaviours among clients and influence their decisions to
make purchases with the price elasticity more consistently at Wal-Mart, Canada. The pricing
decisions made by the company would also increase the demands within the marketplace,

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furthermore, make the customers buy more and generate higher sales and revenue too (Noone
& McGuire, 2013).
2. Literature review and methodology development
2.1 Literature review
According to Haynes (2015), the demand elasticity has been considered and applied
to the marketing mix component of price of a product or service made available by the
company. A rich body of literature has been presented from the assessment of various
secondary sources so as to explore the uses of elasticity of demand and price elasticity,
furthermore, emphasize on how the purchasing power and buying decisions have been
influenced too (Haynes, 2015).
Also stated by Nagle & Müller (2017), that the price elasticity for demand has been
related to the responsiveness of the organisation in terms of the demands in the marketplace,
because of which, there have been demands for the changes in prices of the products too. The
elasticity in price has been experienced, when the price of the product has been either
increased or decreased, which impacted the way the consumers make purchases. With the
prices getting higher, the consumers have dealt less with the product and due to this, the
demands also decreased while with the lowering of prices of the products, the price elasticity
has been lower, thus led to the higher quantities demanded by the customers largely (Nagle &
Müller, 2017). Thus, with the price elasticity for demand, the companies have provided
products and services with the aim of making out a profit as a string relative objective
measure and made sure to use the pricing component as a major driving factor behind the
success of the organisation.

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2.2 Methodology and methods
The research methods include the various research philosophies, research design,
ways of collecting and analysing data and information, furthermore, set proper timeline with
the consideration of limitations and constraints too (Bell, Bryman & Harley, 2018). The
sampling method has been considered as random sampling where a specific group of people
has been selected as samples from a large group of people. To them, the survey
questionnaires have been distributed and their responses have been recorded as quantitative
process during the survey process. The non-probability convent sampling technique could
allow for selecting a convenient time for the managers to become a part of the interview
session and deliver their responses, which should be considered as qualitative data during the
research (Fowler Jr, 2013). Both these qualitative and quantitative data would be considered
as primary data whereas the secondary data would be collected with the analysis of secondary
data sources such as journals, articles, newspapers, magazines and internet websites too. This
would facilitate the input coding scheme and allow for doing necessary documentation
required to conduct further pilot tests and ensure gaining positive research outcomes largely
too (Hennink, Hutter & Bailey, 2020).

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Appendix B
1. Title of project
Impact of price elasticity for demand on the pricing decisions made by the organisation.
A case study of Wal-Mart, Canada
2. Statement of purpose
The purpose of statement is to highlight the importance of price elasticity for demand
an how it influences the pricing decisions made by the customers.
3. Background
The background of research highlights how the increase in price of product results in
reducing the demand and affects consumer buying behaviours while with the lowering of
prices, the demand shave increased and consumer shave been more influenced to make
purchases from Wal-Mart, Canada (Li, Li & Cai, 2015).
4. Significance
The research if of significance as the consumers will be acknowledge about how the
pricing decisions made by Wal-Mart can affect their buying intentions and even allow them
to generate higher demands in the marketplace. This should also make them inclined towards
the brand and enhance the brand image, reputation and equity too.
5. Description of project
The description presents how the price elasticity, i.e., increase or decrease in price has
resulted in increasing or lowering the demands, which further influenced the buying
behaviours of consumers and impacted the sales for Wal-Mart positively or negatively.
6. Preliminary literature review

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According to Haynes (2015), the demand elasticity has been considered and applied
to the marketing mix component of price of a product or service made available by the
company. Also stated by Nagle & Müller (2017), that the price elasticity for demand has been
related to the responsiveness of the organisation in terms of the demands in the marketplace,
because of which, there have been demands for the changes in prices of the products too. The
researchers have contributed to the data collection from secondary sources, which created the
authenticity and reliability too (Nagle & Müller, 2017).
7. Data analysis plan
The analysis of data should be done by SPSS tool after it has been collected with the
help of survey process where the survey questionnaires have been distributed to the people.
The interview session with the managers would help in gathering their responses, considered
as qualitative data (Fowler Jr, 2013). The secondary data sources have been assessed to
gather the secondary data and information and then necessary statistical tools and techniques
have to be used with the help of Pearson’s. ANOVA, etc. (Bryman, 2016).
Price elasticity for
demand
With price increase,
the demands
decrease while for
lower prices, the
demands increase
Higher sales and
profit for lower price
elasticity and vice
versa

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Bibliography
Bell, E., Bryman, A., & Harley, B. (2018). Business research methods. Oxford university
press.
Bryman, A. (2016). Social research methods. Oxford university press.
Fowler Jr, F. J. (2013). Survey research methods. Sage publications.
Haynes, W. W. (2015). Pricing decisions in small business. University Press of Kentucky.
Hennink, M., Hutter, I., & Bailey, A. (2020). Qualitative research methods. SAGE
Publications Limited.
Li, X., Li, Y., & Cai, X. (2015). Remanufacturing and pricing decisions with random yield
and random demand. Computers & Operations Research, 54, 195-203.
Nagle, T. T., & Müller, G. (2017). The strategy and tactics of pricing: A guide to growing
more profitably. Routledge.
Noone, B. M., & McGuire, K. A. (2013). Pricing in a social world: The influence of non-
price information on hotel choice. Journal of Revenue and Pricing Management,
12(5), 385-401.
Zhang, J., Gou, Q., Zhang, J., & Liang, L. (2014). Supply chain pricing decisions with price
reduction during the selling season. International Journal of Production Research,
52(1), 165-187.