Investigating the Impact of Multiple Pricing Strategy on Consumer Purchasing Behaviour

This report focuses on investigating the impact of multiple pricing strategy on consumer purchasing behaviour, with a case study of River Island. The report covers the conceptual framework and significance of pricing strategy, different types of pricing strategy used by River Island, impacts of multiple pricing strategy on consumer buying behaviour, and benefits of pricing strategy taken by River Island to influence consumers and make buying decisions. The research methodology used is deductive approach and survey method for data collection.

Preparing for
Research Consultancy
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Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
RESEARCH AIMS AND OBJECTIVES.......................................................................................3
Research questions...........................................................................................................................3
LITERATURE REVIEW................................................................................................................4
RESEARCH METHODOLOGY....................................................................................................7
CONCLUSION..............................................................................................................................16
REFERENCE................................................................................................................................17
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PROJECT TOPIC:
“INVESTIGATING THE IMPACT OF MULTIPLE PRICING
STRATEGY ON CONSUMER PURCHASING BEHAVIOUR”
INTRODUCTION
A pricing strategy is defined as main aspects in operating a business as it helps to decide
buying decision. To operate a business regularly there is need to focus over different activities or
pricing of particular products that can help reach the targeted customers and develop
performance. Without deciding price, it might be difficult for companies to sale their products
(Liu, Zhang, Huang, Zhang, and Zhao, 2020). The current research is about impacts of effective
price strategy on consumer buying behaviour. In market there are different types of pricing
strategies which are using by business concern to regulate their business and manage each
function properly (Chukwu et al., 2009). River Island is a London based high street fashion
brand that operates business in global market. It was founded in 1948, by Bernard Lewis and
brother. The report involves scope, justification, literature review, and project plan by showing
charts.
RESEARCH AIMS AND OBJECTIVES
Aims
“To identify the impacts of multiple pricing strategy on consumer purchasing behaviour”
A case study of River Island.
Objectives
 To determine the conceptual framework and significance of pricing strategy that
influences customers.
 To state the different types of pricing strategy which used by River Island to sale its
products.
 To describe the impacts of multiple pricing strategy on consumer buying behaviour.
 To state the benefits of pricing strategy is taking by River Island to influence consumers
and making buying decision.
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Research questions
 What is the conceptual framework and significance of pricing strategy that influences
customers?
 What are the different types of pricing strategy which used by River Island to sale its
products?
 What are the impacts of multiple pricing strategy on consumer buying behaviour?
 What benefits of pricing strategy is taking by River Island to influence consumers and
making buying decision?
Project Scope
The project scope is to analyse the impacts of pricing strategy on consumer buying
behaviour that helps to improve the business performance. The researcher will develop their
knowledge and skills in particular field in the form of personal and professional. This also
supports how to manage the working and bring changes at the workplace as having right prices
of products influenced to make buying decisions. The researcher would develop their skills and
knowledge in particular field and manage higher performance by selecting right pricing strategy
and cost that will occur while conducting research. This report states what pricing strategy is
adopting by businesses for the purpose of maintaining business activities. Different types
information is collected by people to research about topic and managing the good performance
(Lu, Hess, Daly, and Rohr, 2017).
LITERATURE REVIEW
To determine the conceptual framework and significance of pricing strategy that influences
customers.
According to Lopez (2020), Pricing is the process whereby a business sets the price at which
it would sell its products and services. Whenever there is demand of any products and service
then price is used to satisfy the customers and managing good performance. Pricing strategy is
the important factor in business life and human life as it influences people what to buy or not?
In other words, price is the consideration which is using by customers in order to buy
something. Pricing strategy is important as it defines value of products and make the customer to
use. If pricing of any products and services are not decided or affordable then it will be difficult
for organisation to run their business. In relation to River Island, pricing strategy is needed to
select the actual value of products and introduce to people which can help to make right buying
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decision and attain the competitive benefits. This also helps to managing all functions and
activities by advertising about products and its prices (Chukwu, Kanu, and Ezeabogu, 2019).
To state the different types of pricing strategy which used by River Island to sale its products.
As per opinion of Niu, Mu, and Li (2019), Pricing is the process of specifying price for
selling its particular products and services. Businesses whatever whole sale, retailer, sole
proprietor ship or partnership all needs to set the pricing strategy as it supports to make buying
decision in changing environment. In business environment there are different types of pricing
strategy are explained below:
Demand Pricing – This is known as customer based pricing in which products and services
are sold out as per customer demand. The pricing method uses consumer demand of particular
products and services which can help to managing higher performance. This involve price
skimming, price point, penetration, bundle price, and others which can help to managing all
customers and develop business productivity (Liu, Zhang, Huang, Zhang, and Zhao, 2020).
Competitive Pricing – This can be explained as method uses by business concern by
comparing with other business that can help to take the competitive advantages. In business
environment there are different types of businesses that are operating their business by deciding
the competitive prices. In relation to River Island, management can adopt competitive pricing
strategy by comparing with other retailer such as Amazon, Tesco and others that can helps to
develop organizational productivity.
Penetration pricing – This means when a business is entering in new market then uses low
prices to enter and launching products. This serves as a deterrent as competitor and manage
higher performance. In relation to River Island, management can use penetration pricing strategy
by setting low prices of their products and services that influences customers and develop
business productivity (Liu, Zhang, Huang, Zhang, and Zhao, 2020).
Price Skimming – This strategy is related to skim the cream pricing that means to keep high
prices of their products and services. In this, a business enters in to new market with high cost of
products and better quality for the purpose of selling its products and services. In relation to
River Island, management can use this price strategy by setting the price of their products and
service in changing environment (Londo, and et.al., 2020).
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Economy price – This strategy is related with wholesalers and retailers that shows lower
prices of their products and services. The economy price means to keep lower prices of their
items that could be adopt by River Island to sale its products and increase business performance.
Price bundling – When two and more products or services are sets collectively with a single
price. The bundle of price is pure bundle and mixed bundle that are sold separately. River Island
can be use price bundle pricing strategy that can help to sale the products and services at
relatively prices which can help to develop the organizational performance.
To describe the impacts of multiple pricing strategy on consumer buying behaviour.
As per view point of Haralayya (2021), Pricing strategy is important for buying the
particular products and services as it helps to reach the targeted customers and maintaining
higher productivity. Whenever people has identified their needs and wants then they go to
various option to buy. If prices are affordable to customers, then it impacts positive as increases
organizational sales and profitability. The impacts of multiple pricing strategy on consumer
buying behaviour is explained as:
Impact of demand pricing – Demand pricing impacting positively on consumer buying
behaviour as it fills the customer demand and wants at right prices. The people get ready to buy
products and services at demand prices. River Island uses this strategy to targeting low and
middle class of people where they get products at demand prices.
Impacts of competitive price – This strategy is good for competitive firms who are operating
their business at large level and wants to develop their profitability. River Island can use
competitive price strategy by setting price according to competitors which can help to influence
more people and sale them products (Londo, and et.al., 2020).
Impacts of penetration strategy – This is most effective strategy that should be adopt by
River Island to increase the sales and profitability. The management should be understanding
income level of customers and decide the price of its retailing products which can help to
develop the organizational productivity and profitability (Niu, Mu, and Li, 2019).
Impacts of Price skimming – This can be creating the challenge for organization as it is less
effective that influence only high profile of customers who are ready to pay extra. This can
reduce the number of customers and affected the business productivity negatively in changing
environment.
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To state the benefits of pricing strategy is taking by River Island to influence consumers and
making buying decision.
As per perspective of Buettner (2020), Pricing strategy has emerged as part of human being
life as there is need of many products from day to night where it is important that price of
products should be affordable for the purpose of influencing customers and developing the
business performance. River Island is the larger supermarket that sales different types of retailing
products and services in changing environment. The management of organization has decided to
use price penetration and demand pricing strategy that provides various benefits such as:
Influence number of customer – Pricing strategy are prominent for customers which can
help to reach the targeted customer by setting right price of their products and services. By using
the price penetration River Island can influence number of customers by setting the lower prices
of their products and services and maintain higher productivity (Buettner, 2020).
Increase the product sales – The aim of business organization is to increase the
profitability by enhancing sales. If prices are affordable for people, then it impacts positively.
River Island is the large size organization that is taking benefits of higher sales in competitive
market by adopting penetration and demand strategy (Lu, Hess, Daly, and Rohr, 2017).
To target the high profile of customers – In adopting price skimming River Island can
target high profile of customers in changing environment which can help to develop the
organizational productivity and performance appropriately. The management should understand
the needs of their customers and provide the products by knowing the level of customers which
supports to attain the competitive advantages (Panda, and et.al., 2020).
Make decision to buy and develop organizational performance – By selecting right
process of their business and proper information influence customers to make buying decision.
River Island is getting the advantages of adopting right price strategy which can help to develop
the organizational productivity and maintain competitive benefits (Lopez, 2020).
RESEARCH METHODOLOGY
Research Philosophy – This is related to study of nature which is already existing and
classify in to different activities that can help to collect information. This is important for
researcher to consider different types of philosophy in their study and adopt which suit their
study. This involves Positivism and interpretivism that based on theory and important aspects of
research area (Haralayya, 2021).
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.
Justification - In relation to current report, positivism philosophy is used by researcher
that can help to collect knowledge that how consumer make buying decisions (Liu, Zhang,
Huang, Zhang, and Zhao, 2020).
Research Approach – This is important for researcher to select the best approach out of
inductive, deductive, abductive, and others which supports to run the business. Whenever there is
need to select the right approach and complete task then has to formulate the plans and procedure
which can be used to managing all functions and activities. This is important for researcher to
select the best approach out of inductive, deductive, abductive, and others which supports to run
the business.
Justification – In relation to current report, deductive approach is used by researcher by
maintaining causal relationship between variable and concepts. By using this approach research
will receive positive outcomes and accomplish business goals effectively (Jauhari, et.al.,2019).
Research design/strategy – This can be explained as method and technique which uses
to choose and integrate with different component of study. While gathering information it is
obvious for researcher to focus over different strategy of study that can help to develop the
understanding and managing performance. This involves experiment, case study, action research,
and survey which relates to analysis (Jauhari and et.al 2019).
Justification –In relation to impacts of multiple pricing strategy, researcher used survey
method which can help to gather accurate and reliable data as proper market research will be
conducted by researcher that would help to know how to influence customers (Joshi, and
Rahman, 2019).
Data collection and technique – It is related to the specified process and system of
collecting data and information that is based on set of variables. For undertaking current research
, investigator use various methods to collect data and information in an appropriate manner
(Buettner, 2020).
Justification – In this research, quantitative data is used in which investigator get opinion
from different people. For undertaking this research, investigator will use qualitative method to
gather relevant data and information by preparing a questionnaire (Joshi, and Rahman, 2019).
Data method: As there are two type of method such as primary and. secondary that are
used after understanding the research topic. It is primary method of data collection in which
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investigator also use various methods like questionnaire, observation, survey, interview and
many more. Along with this, secondary method of data collection is also used in this research as
it includes books, journals, articles and so on published materials (Ma, Hou, Wang, and Yang,
2021).
Justification – For this research, primary as well as secondary methods is used by the
investigator with the aim of attaining positive and reliable outcomes.
Time Horizon – This is main aspects of research which is used by a person to know
specific time and period of time where task is required to complete. To make any decision and
influencing number of customer’s time horizon is required that can help to manage the right
decision and develop the business productivity. Longitudinal an cross sectional activities (Spann,
and et.al., 2015).
Justification – The current report is about impacts of multiple pricing strategy which
used by River Island to influence number of customers and increase sales. The researcher used
the cross sectional in time horizon where it would help to collect number if information.
Gantt Chart – This is chart based tool and technique uses by people to scheduling
activities and classifying the task. This is important for individual to prepare the Gantt chart
which can help to allocate the work systematically and supports perform all functions and
activities are done timely (Ma, Hou, Wang, and Yang, 2021).
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Sampling –The current project is about impact of multiplce pricing stratgey on consumer
buying behaviour, whrere randomly sampling method is used by researcher. In addition of this,
for collecting data from questionnaire, researcher ask various questions from 30 respondents to
understanding their views towards the research topic. Furthermore, random sampling method is
also applied by the investigator in which selected population have an equal chance of being
selected for the sampling. This sampling will be used to understanding different opinion of
individuals (Haralayya, 2021).
Questionnaire
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Q1) According to You pricing stratgey is important for people or
organization?
Frequency
a) Yes 28
b) No 2
Q2) What are the different types of pricing stratgey can be used by
companies to operate its business?
Frequency
a) Demand pricing strategy 5
b) Competitive pricing 10
c) Price penetration 8
d) Price skimming 7
Q3) What are the impacts of pricing strategy used by companies to
targets the customrs?
Frequency
a) Positively 22
b) Negative 8
Q4) What pricing strategy is used by River Island to run their business
and influence people to make buying decision?
Frequency
a) Competitive pricing strategy 9
b) Demand pricing 10
c) Price penetration 11
Q5) What benefis are taking by River Island after using the pricing
strategy?
Frequency
a) Influencing number of people 10
b) Increasing customer base 10
c) Attaining competitive advantages 10
INTERPRETATION
Q1) According to You pricing stratgey is important for people or
organization?
Frequency
a) Yes 28
b) No 2
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Interpretation – From the report it can be interpreted that pricing strategy is most
important for customer as well as business concern as it targets people to buy products and fill
their needs. As per above analysis 28 people says pricing strategy is important and 2 says it is not
needed as people buys products as per wants (Panda, and et.al., 2020).
Q2) What are the different types of pricing stratgey can be used by
companies to operate its business?
Frequency
a) Demand pricing strategy 5
b) Competitive pricing 10
c) Price penetration 8
d) Price skimming 7
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Interpretation – The above analysis states as per 10 employees competitive prices are
efefctive, 8 says price penetration is valuable, and 7 & 5 people are stating price skimming and
price penetration which should be use by companies as per their scale which can help to develop
the organizational performamce (Spann, and et.al., 2015).
Q3) What are the impacts of pricing strategy used by companies to
targets the customrs?
Frequency
a) Positively 22
b) Negative 8
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Interpretation – The above analysis states that pricing strategy is main factor for each
organization as it bring the changes in buying behaviour of people. If prices are affordabble and
right then it impacts positive that have shown by 22 people and remaining people 8 said it
impacts negatively (Lu, and et.al., 2017).
Q4) What pricing strategy is used by River Island to run their business
and influence people to make buying decision?
Frequency
a) Competitive pricing strategy 9
b) Demand pricing 10
c) Price penetration 11
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Interpretation – This is important for each organization to use different types of pricing
stratget that influence the number of people and make buying decisions. According to 11
employees River Island is using price penetration in which it sales products at lower prices, as
per 10 it adopts demand and as per 9 it adopting competitive pricing strategy which can help to
target the people and increase the organizational sales as well as profitability.
Q5) What benefis are taking by River Island after using the pricing
strategy?
Frequency
a) Influencing number of people 10
b) Increasing customer base and sales 10
c) Attaining competitive advantages 10
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Interpretation – From the above analysis it can be interpreted that River Island is the
large size organization that operates its business by taking right action. The pricing strategy
which is using by management is proving different benefits equally such as influencing number
of people, increasing sales and sales of organization and attaining the competitive advantages
(Chukwu, et.al. 2019).
Risk/ limitation – This means problems which can be arises while running a project. The
researcher is focusing on different pricing strategy which used by people to make buying
decision. The risks accessing sample, managing time, and higher cost are associated with this
project that needs to resolve by formulating plans and managing performance.
CONCLUSION
From the report it can be concluded that price is main factor which is using by business
people to sale its products by deciding right price. The types of strategy are demand, competitive,
penetration, economy, and skimming that are used to influence the number of people and
increase sales. The objectives are obtained by researcher by gathering information and selecting
best one method to complete task. River Island is using penetration and competitive stratgey to
inmpacts positively on consumer buying behaviour that can help to attain the business goals.
Research methodology is needed to gather information and apply in their working which can
help to accomplish the task.
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(Chukwu, Kanu, and Ezeabogu, 2019) (Lu, Hess, Daly, and Rohr, 2017) (Liu, Zhang, Huang,
Zhang, and Zhao, 2020) (Londo, and et.al., 2020) (Panda, and et.al., 2020) (Jauhari,
Kusumawati, and Nuralam, 2019) (Joshi, and Rahman, 2019) (Ma, Hou, Wang, and Yang, 2021)
(Spann, Fischer, and Tellis, 2015) Buettner, R., 2020 Haralayya, B., 2021 (Niu, Mu, and Li,
2019) (Lopez, 2020)
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