Full Article: PDF
Scientific Object Identifier: http://s-o-i.org/1.1/TAS-06-122-59
DOI: https://dx.doi.org/10.15863/TAS.2023.06.122.59
Language: English
Citation: Secretaria, N. M. (2023). Effect of Pricing Methods on Consumer Behavior in Key Demographic: A Study on Generation Zs. ISJ Theoretical & Applied Science, 06 (122), 351-361. Soi: http://s-o-i.org/1.1/TAS-06-122-59 Doi: https://dx.doi.org/10.15863/TAS.2023.06.122.59 |
Pages: 351-361
Published: 30.06.2023
Abstract: This research article examines the effect of pricing methods on consumer behavior within the key demographic (Gen Z). The study aims to gain insights into how different pricing strategies impact consumer behavior among Gen Zs, including purchase behavior, brand loyalty, brand switching, willingness to pay, and price sensitivity. Linear Regression analysis and ANOVA were conducted to analyze the data collected from a sample of Gen Z respondents. The results show that there are many different ways in which pricing strategies affect Gen Z consumers' behavior. The results indicate that pricing strategies significantly influence brand loyalty, with Skimming Pricing, Value-Based Pricing showing a likely impact. However, the effect on purchase behavior and willingness to pay was less pronounced, suggesting a more neutral response from Gen Zs. Furthermore, the study identifies that pricing strategies, particularly Penetration Pricing and Discount Pricing, are likely to influence brand-switching behavior among Gen Z consumers. However, the relationship between pricing strategies and price sensitivity was less consistent, with mixed results regarding the specific effects of different pricing indicators. These findings emphasize the importance of understanding Gen Z consumers' unique characteristics and preferences when developing pricing strategies. Businesses targeting this demographic should consider a holistic approach beyond pricing, considering factors such as brand loyalty and switching, as well as other elements that influence consumer behavior.
Key words: Pricing methods, Consumer behavior, Gen Z, Brand loyalty, Brand switching.
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