The Impact of Pricing on Consumer Buying Behavior in Saudi Arabia : Al-Hassa Case Study

Abstract

The study of consumer behavior is very challenging task. If a company wants to survive, it should be able to compete well. The main purpose of this research is to measure the impact of pricing strategies on consumers' psychology and on their buying behavior accordingly. A questionnaire has been designed, distributed and filled up by participants from Al-Hassa region. 433 responses were received from participants with 43.3% response rate, where SPSS were used to analyzed the data collected. The findings show that there is a positive relationship between prices and consumer buying behavior. It also showed that there is no statistically significant difference between the responses of  individuals “due to age, gender, marital status, qualification and monthly salary” about the research's questions related to the three pricing strategies (Odd pricing strategy, Bundle pricing strategy and Discount pricing strategy) except there is a statistically  significant difference between the responses of individuals “due to gender” about the odd  pricing strategy. Depending on the founding results, recommendations were set to retailers and dealers.

Keywords: Buying behavior, odd even strategy, bundle strategy, discount strategy, Consumer Psychology.