A Study on Consumer Attitude to Pricing Strategies for Perishable Foods

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The pricing of perishable foods has been a key strategic factor in the success of food retailers in a fiercely competitive market. In practice, food retailers offer competitive prices to attract potential buyers and to expand their market share. In accordance with such efforts, prior studies on pricing have focused mainly on optimizing prices in order to develop effective pricing structures. This approach takes the view that consumers will be tempted by optimal price propositions and will try to maximize the financial benefits. The problem with the approach is that it is producer- and economic-centric, limiting consumers to having economic interests only. However, we argue that this approach is not as effective as originally assumed, and that we need a change in the current pricing strategy. Based on this understanding, we collect data from actual food consumers using a focus group interview. Our findings suggest that everyday food consumers’ buying decisions are affected by factors other than just price. In particular, we find that everyday food buyers seek a balance between economic interests and ethical concerns. Thus, we define consumers as “everyday ethical consumers.” These consumers question the legitimacy of a retailer’s pricing strategy, because it encourage unnecessary purchasing and generation of food waste, which are critical social concerns. To satisfy consumers and to contribute to society, we suggest that more dynamic pricing can be a viable option. Therefore, food retailers need to consider changing their pricing strategy to meet the needs of contemporary food buyers, and a more dynamic pricing strategy is one possible approach.