Relationship between differential pricing and consumers' perception of product quality: Ukrainian practice

• Main Authors: Олена Анатоліївна Кривошия, Олена Яківна Базілінська
• Format: Article
• Language: English
• Published: PC Technology Center 2014-02-01
• Series: Tehnologìčnij Audit ta Rezervi Virobnictva
• Subjects: differential pricing; product quality; correlation
• Online Access: http://journals.uran.ua/tarp/article/view/21253

The economic relations of consumer electronics sale through retail trade were investigated in the paper. In this case, the emphasis is placed on studying the relationship between the product quality in a particular product category and using the appropriate differential pricing strategy. The main objective of the study is to develop recommendations on using various differential pricing practices to improve enterprise profitability. Using modern information collection methods allows retailers the most promptly and accurately investigate the efficiency of using a particular pricing method for various product groups and promptly respond to changes in market conditions. The proposed analysis method allows to separate the concept of product quality for various product groups, and also to obtain information using conventional statistical tools. The improved approach to understanding the product quality for various groups of consumer electronics was developed in the paper. The basic differential pricing practices were systematized based on the customers' perception of product quality. A correlation analysis to identify relationships between sales volumes (using various differential pricing practices) and customers' perception of product quality was conducted, and recommendations on using certain differential pricing practices for various product groups were made. The research results can be used by consumer electronics retailers in everyday activities for decision-making on the implementation of certain pricing policy for various product groups.