EFFECTS OF PRICE HAGGLING STRATEGY ON CONSUMERS’ DECISION MAKING IN SELECTED TRADITIONAL MARKETS IN IBADAN, OYO STATE

ABSTRACT

The consumers have varied influences that affect their buying decisions and among these are the pricing tactics and strategies of the marketing firm. Most consumers are utility maximizes; many of them always look for value-to-cost when they make buying decision. In some situations, consumers extensively involve in haggling in order to justify economic value to their purchase. The traditional open native/localmarket structure which differs from the conventional markets, departmental stores, etc. encourages haggling in all traditional market settings in Africa and Nigeria in particular.  Haggling is a common feature in these markets as consumers use it to assert their rights to bargain and participate fully in the selling process. Haggling usually occurs in markets and major open markets especially in consumer buying situations where core-value purchases are involved, even “Ogi or Akamu” which is not high value purchase also attract haggling. This determines the final price agreed between the parties and the nature of the offer package that will be provided for that price. Price haggling is concerned with communication processes that take place between the two parties to arrive at a mutually acceptable bargain. Most consumers widely articulated that when making purchases in open markets, the haggling price arrived at may determine their repeat purchases and selected retail traders in the subsequent purchases. Furthermore, in recent times, it has not been ascertained whether the issue of price haggling or negotiation is suitably effective for our marketing system. Thus, this study evaluated the effects of price haggling as a strategy for consumer buying at selected traditional markets in Ibadan. This study sought to: (i) assess the effects of price haggling on consumers’ decision making, (ii) determine the effects of price haggling on consumers’ repeat patronage, (iii) ascertain the effects of price haggling on open market system and (iv) examine the effects of price haggling and negotiation on consumer/seller relationship.The descriptive and survey design were used. The population of the study was 1276 registered traders from the five (5) major traditional markets in Ibadan, Oyo State, Nigeria. The sample of 305 was selected using the Taro Yamane formula. Convenience sampling technique was used to select the respondents from each of the selected markets. Data was collected using the questionnaire research instrument. A pilot study was conducted and responses tested with Cronabch’s Alpha, giving a coefficient of 0.81, indicating the reliability of the instrument. Validity of instruments was measured using content validity. Both descriptive and inferential statistics were used in data analysis. The statistical tools used in the study were the Ordinary Least Square (OLS) linear regression and Kolmogorov-Smirnov Z-test Statistics. These were done with the aid of the Statistical Package for Social Sciences (SPSS 17.0) software.  The study revealed that price haggling has a significant effect on consumers’ buying decision making, is significantly effective on consumers’ repeat patronage, has positive effects on open market operation and has significant effects on consumer/seller relationship.  It was recommended that improvement should be made on the haggling process that will ensure trust, fairness and justified price for product purchase, and Sellers should set retail price range which has a minimum and maximum price of goods, thereby creating a situation where no party in the haggling process is or feels cheated.


TABLE OF CONTENTS

Title Page
Table of Contents
List of Figures
List of Tables
Abstract

CHAPTER ONE: INTRODUCTION
1.1       Background of the Study
1.2       Statement of Research Problem
1.3       Objectives of the Study
1.4       Research Questions
1.5       Research Hypothesis
1.6       Significant of the Study
1.7       Scope of the Study
1.8       Limitations of the Study
            References

CHAPTER TWO:    LITERATURE REVIEW
2.1       Introduction
            2.1.1    Operational Definition of Terms
2.2       Conceptual Framework
2.2.1    The Price as an Element of Marketing Variable
2.2.2    Meaning and Definition of Price
2.2.3    Price Haggling
2.2.4    History and development structure of price haggling activities
2.2.5    Price Haggling Strategies
2.2.6    Rules of Price Haggling
2.2.7    Merits and Demerits of Price Haggling
2.2.8    Factors Responsible for Price Haggling
2.2.9    Price Haggling and Fixed Price Strategy
2.2.10  Barriers to Effective Price Haggling
2.2.11  Price Haggling and Consumer Decision Making
2.2.12  Price Haggling and Consumer Price Sensitivity
2.2.13  Price Haggling and Choice of Buyers
2.2.14  Price Haggling and Customer Relationships
2.2.15  Price Haggling Model
2.2.16  Consumer Decision Making
2.2.17  Factors Affecting Consumer Buying Decision
2.2.18  Buying Situation and Its Causes
2.2.19  Pricing Issues and Characteristics in Different Prevailing Markets Context
2.3       Theoretical Framework
            2.3.1    Haggling/Bargaining Theories
            2.3.2    Future Theoretical Development
2.4       Empirical Review
2.5       Summary of Literature Review
2.6       Gaps in Literature
            References

CHAPTER THREE:            RESEARCH METHODOLOGY
3.1       Introduction
3.2       Research Design
3.3       Area of the Study
3.4       Population of the Study
3.5       Sample Size Determination
3.6       Sample Size of Consumers
3.7       Sampling Techniques and Method
3.8       Sources of Data Collection
3.9       Instrument for Data Collection
3.10     Validity of Research Instrument
3.11     Reliability of Research Instrument
3.12     Method of Data Analysis and Presentation
            References

CHAPTER FOUR:  DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1       Introduction
4.2       Data Presentation
            4.2.1    Questionnaire Distribution and Response
            4.2.2    Profile of Respondents
                        4.2.2.1 Gender
                        4.2.2.2 Age
                        4.2.2.3 Occupation
                        4.2.2.4 Religion
                        4.2.2.5 Marital Status
            4.2.3    Line of Product
            4.2.4    Sales Level Per Day
            4.2.5    Data Presentation Based on Study Objectives
                        4.2.5.1 Effects of Price Haggling on Consumers’ Buying Decision making
                        4.2.5.2 Effects of Price Haggling on Consumers’ Repeat patronage
                        4.2.5.3 Effects of Price Haggling on Open Market Operation
                        4.2.5.4 Effects of Price Haggling on Consumer/ Seller Relationship
4.3       Test of Hypotheses
            4.3.1 Test of Hypotheses One
                        4.3.1.1 Analysis of Data from Consumers
                        4.3.1.2 Analysis of Data from Traders
                        4.3.1.3 Decision
            4.3.2 Test of Hypothesis Two
                        4.3.2.1 Analysis of Data from Consumers
                        4.3.2.2 Analysis of Data from Traders
                        4.3.2.3 Decision
            4.3.3 Test of Hypothesis Three
                        4.3.3.1 Analysis of Data from Consumers
                        4.3.3.2 Analysis of Data from Traders
                        4.3.3.3 Decision
            4.3.4 Test of Hypothesis Four
                        4.3.4.1 Analysis of Data from Consumers
                        4.3.4.2 Analysis of Data from Traders
                        4.3.4.3 Decision
                        References

CHAPTER FIVE:    SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1       Introduction
5.2       Summary of Findings
5.3       Conclusion
5.4       Recommendations
5.5       Contribution to Knowledge
5.6       Suggestions for Further Study

            Bibliography

CHAPTER ONE
INTRODUCTION
1.1              Background of the Study
The aim of marketing is to meet and satisfy target customers’ needs and wants better than competitors. Successful marketing requires that companies fully connect with their customers. This calls for adopting a holistic marketing orientation which means understanding customers and gaining a full turn-around view of both their daily lives and the changes that occur during their lifetimes so that the right products are marketed to the right customers in the right way. These consumers have varied influences that affect their buying decisions and among these are the pricing tactics and strategies of the marketing firm (Kotler and Armstrong 2007:5).

Brassington and Pettitt (2003:392) defined price as the value that is placed on something. Usually, the price is measured in money, as a convenient medium of exchange that allows price to be set quite precisely. This is not necessarily always the case.However, goods and services may be bartered, or there may be circumstances where monetary exchanges are not appropriate.

Zeithaml (1998:17) noted that from the buyer’s perspective, price represents the value they attach to whatever is being exchanged.  Up to the point of purchase, the marketer has been making promises to the potential buyer about what this product is and what it can do for that customer. The customer is going to weigh up those promises against the price and decide, whether it is worth paying.

There is much competition for consumers’ disposable income. This is reflected in both the range of different product markets available for them to spend in and the variety of products competing in any one market. Consumers also have a great deal of discretion over whether they spend or not. There are very few real necessities and, on many occasions consumers buy because they want to, rather than because they need to (Achumba 2001:17).

Also, as a result of the fact that consumers are largely buying to please themselves, their assessments of competing products in most markets is often informal, non-rational or emotional or even none existent. McCarthy and Perrault (2005:172) stated that psychological factors can play a much greater role than analytical skills. Even where hard product information is provided, the consumer does not necessarily make the effort to digest it properly or retain it.  Price too, as has already been pointed out, may be interpreted variously, depending on the individual customer.
Most consumers are utility maximizers; many of them always look for value-to-cost when they make buying decisions. In some situations, consumers are extensively involved in haggling in order to justify economic value for their purchase. Stanton and Sommers (1985:17) opined that in Business to Business (B2B) markets and major open markets in consumer buying situations where high-value purchases are involved, haggling usually takes place. This determines the final price agreed between the parties and the nature of the offer package that will be provided for that price. Price haggling, according to Lysons (1993:215), is concerned with communication processes that take place between the two parties to arrive at a mutually acceptable bargain.....

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Item Type: Postgraduate Material  |  Attribute: 129 pages  |  Chapters: 1-5
Format: MS Word  |  Price: N3,000  |  Delivery: Within 30Mins.
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