Novelty of the Research: This study brings novelty by examining the
influence of value price and promotion on purchase decisions,
incorporating consumer buying intention as an intervening variable.
Through this innovative approach, the research seeks to fill a gap in
the literature regarding both the direct and indirect relationships of
value price and promotion on purchase decisions.
For the direct effect, value price is the variable with the best value. However, for the
indirect effect, promotion has the best value through consumer buying intention.
Considering that both value pricing and promotion work indirectly to enhance
purchase decisions, how should companies allocate their marketing budgets between
these two areas to optimize customer buying intention and drive conversions?
Replies:
To optimize the marketing budget between value pricing and
promotions, a company should follow some fundamental principles.
First, understand who the target customers are and what they value
-whether they are more attracted to competitive pricing or respond
better to offers and promotions.
If customers tend to be price-sensitive, the budget can be more
focused on competitive value pricing strategies. However, if
promotions are more effective in capturing interest, the company
can allocate more towards promotional campaigns, such as
discounts or loyalty programs, which indirectly encourage
purchases without always needing to lower prices.
Combining these strategies with perceived high-value offerings can
also provide a dual benefit, where promotions and value perception
work together to increase buying interest. Additionally, the company
should conduct regular evaluations to adjust budget allocations
based on actual results, ensuring that the allocated budget
genuinely boosts purchase interest and customer conversion in line
with expectations.
Novelty of the Research:
This study brings novelty by examining the influence of value price
and promotion on purchase decisions, incorporating consumer
buying intention as an intervening variable. Through this innovative
approach, the research seeks to fill a gap in the literature regarding
both the direct and indirect relationships of value price and
promotion on purchase decisions.
Phenomenon Gap:
Previous studies have often focused on price perception or
promotion directly affecting purchase decisions without
considering buying intention as a mediating variable that could
influence this relationship. In practice, there is a phenomenon
where, despite relatively high prices and less effective promotions,
sales continue to increase, suggesting the presence of other factors
that impact this relationship. In response, this study introduces
consumer buying intention as a connecting variable to better
understand this influence.
How does the impact of value, price, and promotion on purchase decisions vary
across different customer demographics, and what does this imply about the role of
buying intention as an intervening variable in diverse market segments?
Replies:
The impact of value, price, and promotion on purchase decisions
can vary greatly across different customer demographics, such as
age, income, education level, and cultural preferences. For example,
younger customers may be more responsive to promotions and
more likely to be influenced by prices that fit within their budget,
while older customers may place more value on quality rather than
just low prices. Similarly, customers with higher incomes may be
less sensitive to promotional prices but more concerned with the
value or quality of the product.
This variation highlights the important role of buying intention as an
intervening variable across different market segments. For instance,
in segments that are more responsive to price and promotion,
buying intention may strengthen when the price or promotion aligns
with their expectations. However, in segments that focus more on
value, buying intention may be influenced by their perception of the
product^s long-term benefits. Therefore, the role of buying intention
as a link between value price and promotion with purchase
decisions becomes more significant in tailoring marketing
strategies for different demographic segments.
Novelty of the Research: This study brings novelty by examining the
influence of value price and promotion on purchase decisions,
incorporating consumer buying intention as an intervening variable.
Through this innovative approach, the research seeks to fill a gap in
the literature regarding both the direct and indirect relationships of
value price and promotion on purchase decisions.
