A Research Proposal to investigate Consumer Behavior Research Proposal by Nicky

A Research Proposal to investigate Consumer Behavior
The paper is a research proposal to evaluate the complexities of pricing as they relate to customer loyalty in a depressed economic environment.
# 147205 | 2,935 words | 12 sources | APA | 2010 | US


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Description:

The writer of this research proposal states that the problem of defining and quantifying the relationship between price and brand loyalty of consumer goods during an economic downturn must first take into account how the broader economic conditions impact price elasticity. The author goes on to say that defining the interrelationships of the many factors that influence and are influenced by pricing strategies in consumer goods manufacturers, and being able to align these factors to generate customer loyalty, is critical during an economic downturn. The research examines these factors and attempts to produce a Pricing Loyalty Framework will take into account the broader competitive dynamics that are made more accentuated during periods of economic downturn. The paper includes one diagram.

Table of Contents:
Proposed Topic
Statement of the Research Problem
Purpose of the Study
Research Questions
Methodological Approach
Significance of Research
References

From the Paper:

"Consumer goods manufacturers must however keep pricing consistent to retain the trust of their customers and further reinforce customer loyalty. Too many changes to pricing on consumer goods leads to confusion of product positioning as well, as pricing is often a contributor to the price/quality relationship any product attains (Morgan, Rego, 2009). When adverse economic conditions including recessions often lead companies to drop their prices, they do so often not knowing exactly how these changes will impact the perception of the quality, and whether the price change will lead to increases in demand. Too often during challenging economic times consumer goods manufacturers drop the prices of their products hoping to find higher levels of price elasticity and volume in their served markets. In fact this often leads confusion over the product's position and the expectation that even greater price reductions are imminent, as consumers perceive the price drop as a strategy for enticing them to stay loyal based on lower prices alone. In certain segments of higher-end consumer products a lower price is also often seen as a "bribe" to keep customers, one which is often expected from that point on. When a price drop is made, even during challenging economic times, it is very difficult to raise prices again.
"In consumer product markets that are experiencing price inelasticity the level of confusion of just what a consumer goods manufacturer is attempting to accomplish by a price drop is even more acute. Price inelasticity translates into no movement in quantity regardless of the price reduction. Loyal customers to inelastic products have expectations of prices being at a specific level, and in fact may reduce their loyalty for a brand that drops its price. They may perceive the price drop as a sign this specific consumer goods manufacturer is facing challenges of financial viability and staying in business. At first glance the reduction of prices on either inelastic or elastic products during a recession would lead to the assumption of an increase in volume. Yet in reality this is not the case; there are many other factors that need to be taken into account before that conclusion is made."

Sample of Sources Used:

  • Yossi Aviv, Amit Pazgal. (2008). Optimal Pricing of Seasonal Products in the Presence of Forward-Looking Consumers. Manufacturing & Service Operations Management, 10(3), 339-359. Retrieved January 9, 2009, from ABI/INFORM Global database. (Document ID: 1533052551).
  • Jay P Carlson, Danny Weathers. (2008). Examining differences in consumer reactions to partitioned prices with a variable number of price components. Journal of Business Research, 61(7), 724. Retrieved January 9, 2009, from ABI/INFORM Global database. (Document ID: 1468402171).
  • Alaine Carpentier, Herve Guyomard. (2001). Unconditional elasticities in two-stage demand systems: An approximate solution. American Journal of Agricultural Economics, 83(1), 222-229. Retrieved January 9, 2009, from ABI/INFORM Global database. (Document ID: 69240830).
  • Ioana Chioveanu (2008). Advertising, brand loyalty and pricing. Economic Behavior, 64(1), 68. Retrieved January 9, 2009, from ABI/INFORM Global database. (Document ID: 1531550311).
  • Tulin Erdem, Susumu Imai, Michael P. Keane. (2003). Brand and Quantity Choice Dynamics Under Price Uncertainty. Quantitative Marketing and Economics, 1(1), 5. Retrieved January 9, 2009, from ABI/INFORM Global database. (Document ID: 341969741).

Cite this Research Proposal:

APA Format

A Research Proposal to investigate Consumer Behavior (2011, March 02) Retrieved February 06, 2023, from https://www.academon.com/research-proposal/a-research-proposal-to-investigate-consumer-behavior-147205/

MLA Format

"A Research Proposal to investigate Consumer Behavior" 02 March 2011. Web. 06 February. 2023. <https://www.academon.com/research-proposal/a-research-proposal-to-investigate-consumer-behavior-147205/>

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