Marketing and Management Concepts: Price and Customer Loyalty

This report delves into the significant relationship between price satisfaction and customer loyalty within a marketing context. It examines how pricing strategies, including price reliability, relative price, price fairness, and price transparency, directly influence consumer behavior and their commitment to a brand. The analysis highlights that fair and transparent pricing enhances customer satisfaction, which in turn fosters loyalty. The report underscores the importance of understanding pricing dynamics for marketing managers, offering insights into how to manage price-related issues to strengthen customer relationships and improve business performance. The research draws upon academic sources, including articles exploring the impact of price satisfaction on business performance and the dimensions of price satisfaction in the retail banking industry, providing a comprehensive overview of the topic. The report emphasizes that when prices are perceived as fair and the provided value is clear, customers are more likely to remain loyal, making price satisfaction a critical element of successful marketing strategies.

Running Head: MANAGEMENT AND MARKETING CONCEPTS 1
Management and Marketing Concepts
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MANAGEMENT AND MARKETING CONCEPTS 2
Management and Marketing Concepts
Marketing issue; pricing
The article illustrates price as the financial value in which a product is given in the
market. Any business unit in the market is based on the distribution of products depending on the
assigned valuation. The value given to any product gives basis to the customers to be able to
determine their level of satisfaction. Pricing is one of the major aspects of the market
characterizing financing.
Marketing theme; price satisfaction on the loyalty of customers.
The article defines loyalty as a strongly and deeply held commitment by a consumer to
buying a particular product at any time of need despite the existing marketing influences
(Boniface, et al, 2011). Price satisfaction of the customers enhances their loyalty to buying a
specific product. The article has demonstrated various dimensions of price satisfaction as
follows;
Price reliability. According to business agreements, customers will positively accept an
increase in price if the costs given are not hidden and the products given are valuable for use in
their activities. Suppliers of a particular product are able to manage their activities and also
reduce any imaginable risks that may occur if the prices quoted are reliable. Relative price. The
level of competition in an industrial environment to which it’s structured mainly influences its
performance. Customer’s loyalty is influenced by the convenience of the company to sell their
products at the right price valuation.
Price Fairness. In cases of price unfairness, the consumer will doubt the real value of the
product as the issue of both fairness and unfairness of the product is psychological and has a
crucial influence on customer’s reaction to satisfaction of the price. This simplifies that the

MANAGEMENT AND MARKETING CONCEPTS 3
existing customers to a certain product are not willing to pay prices that are unfairly perceived
and are against the set price norms of the society.
Price transparency. Easier access to price related information to a customer enhances
positively the ability of the customer to purchase the product. This is because the information
given enhances the confidence relating to customer satisfaction (Matzler, et , al, 2006).
Transparency in every price activity enhances the customers trust in the set pricing policy.
Management theme; Effects of customer’s satisfaction
The articles research findings on the effects of customer’s satisfaction on maintaining
their loyalty to a certain product. These effects were analyzed on the basis of price satisfaction
on the loyalty of customers in the business plant that is electric generating (Somogyi & Gyau,
2009). Some of these effects included; comparison of price effectiveness by that of the
competitors in regard to the brand value of the product. Give clear information on goods and
services, prices and features to help improve customer’s satisfaction to remaining loyal. Price
fairness on a product ensures that the customer can access the product anytime the need arises.
Summary
The article on the impact of price satisfaction on customer loyalty has enhanced the
theme of product development in operations management in a given business unit. This enhances
the relationship between the firm business activities and that of the consumer who is the main
stakeholder to access the provided services as well as the goods at a fair deduced value. It would
be of benefit for a marketing manager to read this article because of the following reasons;
 Understand the importance of fair pricing to enhancing customer satisfaction
 Enhance the means of rending price information to a customer
 Analyze price related issues that may either loosen or tighten customer’s loyalty

MANAGEMENT AND MARKETING CONCEPTS 4
 Enhance his or her management skills.
Article link
http://hrmars.com/hrmars_papers/
Article_06_Studying_Impact_of_price_Satisfaction_on_Loyalty.pdf

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References
Boniface, B. & Gyau, A. & Stringer, R. (2011). Linking price satisfaction and business
performance Malaysia dairy industry, Journal of Marketing and Logistics, vol. 24, no.2,
pp.288-304.
Matzler, Kurt; Würtele, Andreas; Renzl, Birgit. 2006. Dimensions of price satisfaction: a study
in the retail banking Industry, International Journal of Bank Marketing, Vol. 24, Iss: 4, pp
.216 – 231.
Somogyi, S. & Gyau, A. (2009). The Impact of Price Satisfaction on Supplier Relationship
Performance. Proceedings of the Australian and New Zealand Marketing Academy
(ANZMAC) Conference, Melbourne, Monash University: School of Management and
Marketing.