Investigating the Impact of Multiple Pricing Strategy on Consumer Purchasing Behaviour: A Study of River Island

INVESTIGATING THE IMPACT OF MULTIPLE PRICING STRATEGIES ON
CONSUMER PURCHASING BEHAVIOUR
BEHAVIOUR: A STUDY OF RIVER ISLAND
A RESEARCH SUBMITTED TO THE
UNIVERSITY OF CHESTER, CHESTER BUSINESS SCHOOL, CHESTER
CAMPUS, PARKGATE ROAD, CHESTER, ENGLAND, UNITED KINGDOM.
IN FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF
MASTER OF BUSINESS ADMINISTRATION (MBA).
MAY 2022
 The work has not been submitted to other institutions for any other degree, or
certificate in this university or any other university in England.
 Whenever I used materials (data, theoretical analysis, and text) from other sources, I
have given due credit to them in the text of the report and given their details in the
references.
 I have followed the guidelines provided by the university in writing the report.
1

 The work contained in the report is original and has been done by me under the
supervision of my supervisor.
I declare that copying someone’s project, or part of it without proper acknowledgement
is wrong, and understand that failure to do so amounts to plagiarism and will be considered
grounds for disciplinary action to be taken against me.
I declare that there is no plagiarism in the dissertation apart from properly referenced
quotations. This is my research.
Student’s Signature: AKINOLA OPEYEMI SUNDAY OLAWUYI
Date: MAY 2022
DEDICATION
This thesis is dedicated to the highest God, my creator and master. Who kept me going
throughout my journey and gave me the inspiration, wisdom, knowledge, understanding and
divine favour, all glory to God.
2

3

ACKNOWLEDGEMENT
Foremost, I would like to express my sincere gratitude to my supervisor, Ms Luisa
Goncalves Rosado for the continuous support of my research, her patience, motivation,
enthusiasm, and immense knowledge. Her guidance helped me in my research and writing of
this thesis all the time. Besides my supervisor, I would like to thank my PAT, Henry Sidsaph.
My sincere thanks also go to my gleaming brother (Lawyer Abiodun Adekoya), my wife
Oluwaseun Olawuyi, Prophet Mr & Mrs Adeyemi Adesina, DSC Popoola Olawuyi, Adekola
Olawuyi, Tosin Olawuyi, and my friends Segun Lagastar, Raphael Oluwadamilola for their
support and encouragement throughout the process.
Last but not the least, I would like to thank my mother for giving birth to me in the first
place and supporting me spiritually throughout my life.
God bless you all.
4

ABSTRACT
The main purpose of conducting the present study is to analyse and investigate the impact of
multiple pricing strategies on consumer purchasing behaviour. To understand the conceptual
framework of consumer buying behaviour. There will be a detailed overview of the various
theories associated with consumer buying behaviour. It will help to develop a detailed
understanding of how changing consumer buying behaviour is affecting the present retail
sector organisations in the long run.
Research methodology is a step-by-step process that is applied to collect and analyse
information efficiently. In this, there are different types of research methods that are applied
for collecting as well as analysing data systematically. The present study has carried out a
qualitative secondary piece of data. This study has only considered a secondary type of
information data for addressing each question of the research effectively and efficiently.
It is recommended that in the past few years, there is complete changes in the way River Island
focus on analysing the changing nature of consumer buying behaviour. For this purpose, it is
suggested that in River Island, the brand can focus on getting deeper knowledge about product
sales and consumer purchases.
5

Contents
TOPIC: Investigating the impact of multiple pricing strategies on consumer purchasing
behaviour.....................................................................................................................................................8
1. INTRODUCTION..........................................................................................................................8
1.1 Background to the research.................................................................................................8
Research aim:............................................................................................................................ 9
1.2 Research question..............................................................................................................9
Research Objectives...................................................................................................................9
1.3 Justification for the research..............................................................................................9
1.4 Outline methodology..................................................................................................................10
1.5 Outline of the chapters....................................................................................................10
1.6 Definitions........................................................................................................................11
1.7 Summary.......................................................................................................................... 12
2. Literature review..................................................................................................................... 12
2.1 Introduction..................................................................................................................... 12
2.2 Parent disciplines/fields...................................................................................................13
2.3 Main theme, analytical models and applicability to research questions...........................13
2.4 Conceptual model..............................................................................................................22
2.5 Summary.......................................................................................................................... 22
3 Methodology...........................................................................................................................23
3.1 Introduction..................................................................................................................... 23
3.2 Methodological considerations........................................................................................23
3.2.1 Justification for the selected paradigm and methodology............................................23
3.2.2 Rejected methodologies and methods.........................................................................25
3.3 Research design............................................................................................................... 25
3.4 Research methods / procedures......................................................................................26
3.5 Ethical considerations...................................................................................................... 27
3.6 Summary.......................................................................................................................... 28
4 Data analysis and Interpretation.............................................................................................28
6

4.1 Introduction..................................................................................................................... 28
4.2 Data analysis.................................................................................................................... 28
4.3 Findings for each research question discussed in the light of the literature....................35
4.4 Summary.......................................................................................................................... 37
5 Conclusions............................................................................................................................... 37
5.1 Introduction..................................................................................................................... 37
5.2 Critical evaluation of adopted methodology....................................................................37
5.3 Conclusions about each research objective (aim)............................................................38
5.4 Conclusions about the research question/s.....................................................................39
5.5 Limitations of study........................................................................................................... 41
5.6 Opportunities for further research....................................................................................42
6. Recommendations...................................................................................................................42
6.1 Implementation plan......................................................................................................... 44
REFERENCES.................................................................................................................................45
APPENDIX 1...............................................................................................................................................51
APPENDIX 2...............................................................................................................................................52
7

TOPIC: Investigating the impact of multiple pricing strategies on consumer purchasing
behaviour
1. INTRODUCTION
1.1 Background to the research
Pricing strategy is defined as the methods that an organisation uses to determine the
price of its product and services. It is an important element that allows a company to maintain
its performance and retain customers as well (Steinhardt, 2019). There are various factors that
an organisation considers while deciding on the price of products, such as resources, demand
and supply, customer segment, and the ability of customers and the market (Kramer et al.,
2018).
On the other hand, consumer buying behaviour is undertaken as an inseparable part of
marketing and is the study of ways in buying goods and services to satisfy the requirements of
customers. In the present period of COVID-19, the behaviour and pattern of customers towards
consuming goods as well as services has changed. Most of the customers preferred to buy good
and quality products, whereas some do not purchase goods because of the high price. At
present, organisations need to consider the situation and analyse the behaviour of customers
before setting the price of their products and services offered in the market (Zhang et al., 2021).
For the present report, River Island is chosen as a base company. It is a high street fashion
brand established in 1948 and headquartered in London, UK. The company offers men’s and
women’s accessories, clothing and footwear and has its presence globally (River Island, 2017).
Due to the changing situation of COVID-19, the company has adopted multiple pricing
strategies so that it can deal with the changing consumer purchasing behaviour. The company is
now facing an issue as it is not able to maintain its performance and attract customers to its
offerings. The present study helps identify the impacts of multiple pricing strategies on
consumer purchasing behaviour to deal with this.
8