Investigating How Different Pricing Strategies Impact Consumer Perception and Purchase Behavior in Online Markets with Special Reference to Discounts, Bundling

Abstract

Pricing strategies are becoming increasingly important in competitive online markets, owing to a mix of technology developments, increased customer awareness, and strong rivalry. To thrive in the dynamic online marketplace, organizations must gain a thorough understanding of these methods. Today, retailers may use consumer data to develop dynamic pricing models, which modify prices in real time depending on demand swings, inventory levels, and rival pricing. While this level of customisation might boost profitability, it necessitates a thorough understanding of how customers react to price adjustments. This study investigates how different pricing methods, particularly reductions and bundling, affect consumer perceptions and purchasing behavior in online markets. A primary survey of 157 respondents was undertaken to assess the influence of these techniques on variables such as value perception, brand loyalty, and purchase intentions. The findings shed light on the effectiveness of pricing strategies for increasing consumer engagement and generating sales.