objective of this project include the examination of the importance of price in
consumer purchase decision using Mr. Biggs Plaza as a case study. Other
objective include how customers changes behaviour as a result of increase in
price, information for this study was gotten from both primary and secondary
source. This include questionnaire and personal interview held with customers
and employees of the organization and data through desktop research. The
research reveals that most young men and women from different communities
especially the urban areas of Edo State patronize Mr. Biggs Plaza in the
strategic creation where Mr. Biggs plaza are hasted. The findings show that
sixty percent of the customers will reduce quality purchase whenever price
increases. Meanwhile, pricing is an important business decision whereby it
should not be overlooked. As a result of the problem discovered during research
findings, the researcher recommended that there is need for the sales
department of a pricing section in the sales department with the aim of setting
price for product determine the most appropriate price, for products as they
under to preparation to when they care finally with the customers.
TABLE OF CONTENTS
of Contents vi
1.1 Background to the Study 1
1.2 Statement of the Problem 4
1.3 Purpose of the Study 5
1.4 Research Question/Hypothesis 5
1.5 Relevance of the Study 7
1.6 Scope of the Study 8
1.7 Limitations of the Study 8
1.8 Operational Definition of Terms 9
Chapter Two: Literature
2.1 Introduction 11
2.2 The Importance of Price to Consumer and
2.3 Consumer Decision Making 25
2.4 Selection of a Pricing Policy 26
2.5 Consumer Perception of Price 29
2.6 Relationship between Price and Quality 31
2.7 Brief History of Mr. Biggs Plaza 31
2.8 The Role of Advertising in the Sales of Mr.
(Small Business Management) 32
2.9 Summary of the Chapter 34
Research Methodology 35
of the Study 35
of Data Collection 36
of Instruments Used 37
3.6 Method of
Data Analysis 37
3.7 Cut Off
Point/ Decision Rule 38
Data Presentation and Analysis 39
of Data 39
Analysis/Hypothesis Testing 88
of Findings 92
Summary of Findings, Conclusion
of Findings 93
for Future Research 95
Appendix I 97
Appendix II 98
to the Study
The significant of price in consumer
purchase decision play a vital role in marketing organization. Therefore any
marketing mix price remain the only variable that generate revenue, the other
three component of the products, distraction and promotion products cost. In an
economic theory, will are made to understand price value and utilities are
related concept. However, utilities is attributed of an item that make its
capable of want (satisfaction) why review is quantitative measure worth of a
product to attach other product is exchange price and better quality products
or service remain wire, from the several from the firm good quality product
should not be spoilt try to sell cheap. The consumer should give the price
which he want and its should be noted that its not necessary cheapest price
will give a consumer the maximum satisfaction.
The world price is use to be denote
monetary worth of an item price value expressed items of naira and any other
monetary middle of exchange may consider price to be the key activities of
decision by consumer.
The significant of price in consumer
purchase therefore, according to Agbonifoh (2007), consumer purchase is a
method by which consumer is enable to ascertain what he/she is wisher to buy of
a particular period of time. Purchase decision is the act by which increase
individual is efficient select what is demanded from the seller, buying
decision of consumer buying behaviour study the attitude about a consumer
behave in particular market or study the attitude of consumer market. Marketing
segmentation derived appoint from analysis and breaker of market into the deferent
stages that can enable them select prospective buyer to or sell.
Therefore, consumer purchase decision
involves that different production department assembling and delving the output
of a mix of physical/facilities and mental or physical labour, sometime the
customer roles relatives piscine more other they are actually involves in
helling create the service product. These faction make it hard for service organization
to control quality and to offer customer a consistence product from the
customer perspective three distinctive characteristics of most service products
are their ephemeral and experimental nature of consumer purchase in marketing
may led. Role in model marketing through the purpose of crediting product
awareness, employed and other customer behaviour. According to Kotler and
Keller (1996), marketing is a social and managerial process by which individual
and groups obtain what they need and want through creating and exchanging
products and values with others. From this definition, it can be seen that
marketing embraces the activities engaged into satisfy need and want. Customer
satisfaction is the degree to which the product, services perceived performance
matches the customer expectation. By this it is clear that product have to be
designed, developed goods must be transported and stored at strategic
geographical location, they may be purchased price must be portion for
convenience purchase, price must be established at both wholesale and retail
levels. Provision must be made for financing or credit and the risk of owing
inventory must be borne until the sale is consummated and title transferred
information therefore, from the perspective consumer purchase decision in
of the Problem
Most companies do not handle price well.
Common mistakes are that, pricing is too low oriented in that companies fails
to take sufficient account of demand intensity and customer psychology. Price
is too alter set independently of the rest of the marketing mix rather than as
an intrinsic element of marketing for instance, fast food industry is as
advisable for management to be conscious of how they fix price in order to
encourage customer purchasing power or customer loyalty, some customer are
always conscious of price difference.
Since most organization or company do
not know the significant of price in customer purchase decision a study of this
nature become important and hence the problem of this study put in the question
is what is the significance of price in consumer purchase decision.
of the Study
The major objective of this study is to
examine the way price is significant to consumer purchase decision, some of the
1. To examine how consumer respond to purchase
2. To know the price strategy the organization
3. To know the effect price play in purchasing
know how difference in price affect the profit of the organization.
In order to carryout the impact of
consumer purchase decision on the investigation of the significance price in
researcher has some doubts of questions which are itemized below;
1. How does a consumer respond to increase in
2. What effect does price play in purchasing?
3. What pricing policy does the organization
does the difference in price affect the profit of the organization?
price determine the quality of a consumer?
The following research hypotheses are
hereby formulated to be tested;
Consumer do not respond to increase in
HI: Consumer respond to increase in price.
HO: Price have no effect in
HI: Price have effect in
purchasing pricing policy.
HO: The organization does
not adopt pricing policy.
HI: The organization adopt
HO: Difference in price does
not affect the profit of the organization.
HI: Difference in price affect the profit of the
Price does not determine the quality and
quantity of a consumer.
HI: Price determine the quality and quantity of
of the Study
The importance of the study on consumer
purchase decision cannot be overemphasized through there has been a lot of
misconception of the above, but this research work is considered relevant in
that, it criminate such misconception, this topic under study is to great
The consumer in the sense that it will
enable the consumer know the worth or quality of a product in comparison with
the price fixed. Secondly, price is also of relevance of the consumer become
help in the determination by the quality of a product to be purchased by the
To the development of the firm when
appropriate method of pricing being used based on the result of the research.
The quality of researcher for an award
certificate in the programme.
To broaden the knowledge of the
researcher about the subject matter.
To create an avenue for other scholars
to enrich the knowledge.
It enable the consumer to know the price
each goods can be obtain in the market.
of the Study
The project work is aimed at examining
the extent to which price is significant to consumer purchase decision.
Realizing the financial and time constraints associated with this type of
study. it is therefore limited to the management staff of Mr. Biggs Plaza
The study will therefore explore the business
activities and operation of the industry with a view to determine the extent to
which they have applied prices as out of the marketing mix variable.
of the Study
Due to the shortness of time and limited
period allocation for the writing of this project, the researcher couldn’t
thoroughly carryout a more detailed and elaborate work. Besides, continued
lecture, assignment and test did not make it an easier task.
Finance is another limiting factor which
hindered the traveling to universities and polytechnics in search for effective
Absence of current published materials
such as journals and publication related to the effect of the research.
With all these put together, there was
no way the research could escape any of this project work. nevertheless, the
best was still put in place using the available materials.
Definition of Terms
1. Price: Is a value or
sum of money at which as supplier of a product or service and buyer agree to
carryout an exchange transaction.
2. Demand: This is the
amount or quantity of goods and service which a product is willing to buy
coupled with the ability to pay a given price, at a particular time.
This is the quality of a given commodity or service which a product offers for
sale over a period of time of a particular market place.
4. Satisfaction: This
is the amount of goods and service that a consumer is willing to buy at a given
Consume: They are those that know what the effectiveness of the various
goods and service in attaining those goals.
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