| Abstract [eng] |
THE EFFECT OF PRICE REDUCTION AND INCREASE (UNDER TIME PRESSURE) ON PRICE FAIRNESS PERCEPTION AND PURCHASE INTENTION Karolina KAŠKUR Paper for the Master‘s degree Marketing and Integrated Communication Master‘s Program Vilnius University, Faculty of Economics and Business Administration Supervisor – dr. I. Radavičienė Vilnius, 2023 SUMMARY 76 pages, 12 charts, 1 illustration, 124 references. The aim of the master’s thesis was to investigate the influence of price offer (decreasing and increasing) on customers’ intention to buy and the perception of price fairness under the influence of time pressure, covering emotional, functional and economic attributes of the value of the offer. The following tasks were solved in the master’s thesis: to define the general concept of price and it’s influence on decision-making; determine the principles of price formation in trade channels; to define the complex factors of price offer perception and evaluation; to prepare a research methodology that will help to achieve the intended goal; to assess how different price offers affect price fairness; to check all the hypothesis put forward and find out their accuracy; present conclusions and recommendations. The most important structural parts of this work: literature analysis, methodology, conducted research, conclusions and recommendations. The literary analysis part of the work presents general concept of price and the principles of price formation in both: physical and e-commerce stores. And most importantly, it examines how buyers’ perception of fairness is affected by different stimuli, such as: price increase, price decrease, different time pressure and different type of goods. Also, the literature reviews how the perception of the value of the offer and it’s different perspectives (economic, functional and emotional) correlate with the perception of fairness. This performed literature analysis further becomes the basis of methodology and research. In order to further implement the goals, an experimental design (2x2x2) was carried out. To carry out the research, four questionnaires were complied, with which all data relevant to the research were collected. With the help of “IBM SPSS” these data were processed and checked – thereby clarifying the accuracy of the proposed hypotheses. In the course of the research, it was found that as the price offer decreases, the perception of fairness increases, and since the perception of fairnesss is directly correlated with the intention to buy, the intention to buy also increases. It was found that time pressure does not have any effect on the perception and intention of buyers. On the other hand, the perception of the value of the offer (economic, emotional and functional), also positively affects the perception of fairness. The conclusions summarize the entire study and provide practical insights for application in specific situations. |
