Pricing Categories and its Effect on Consumer Buying Decision

Abstract

Consumer buying decisions (CBD) are affected by many factors, and pricing is among them. However, to understand how pricing affects the buying decision of consumers, researchers found that it is necessary to clarify pricing categories. The objective of this study is to see how each pricing category affects CBD. Since there are few studies regarding the impact of pricing categories on CBD especially in Iraq. Researchers investigated the impact of fair price, fixed price, and relative price on CBD. A questionnaire was distributed randomly on consumers who were willing to respond, 132 valid questionnaire were gathered and analyzed by SMART PLS3 to arrive at the study's findings. Moreover, the results showed that the fixed price and fair price had a positive effect on the CBD.

Keywords

• pricing categories
• consumer buying decision
• relative price
• fair price
• fixed price