Effect of the price drop on customer's perceived evaluation across selected product categories

Abstract

A price drop is a very common promotional tool used by brands and marketers to stimulate impulse buying as well as to improve stagnant sales. This study is primarily directed to study the effect of the price drop on the customer's perceived evaluation across selected product categories. For this study, the top three product categories based on the category wise sales data revealed by various online as well as offline shopping players during price drop sales have been selected, namely apparel, footwear, and electronics, as these product categories were most preferably shopped by customers and witnessed frequent price drop during festival seasons. For collecting data in National Capital Region (NCR), using purposive sampling 250 shoppers were surveyed who shopped for these product categories at Big Bazaar, Pantaloons, Spencer, Reliance trends, Amazon, Flipkart during discount days. Exploratory factor analysis (EFA) has been run to identify the factors of customers’ perceived evaluation in case of a price drop. Further Multivariate Analysis Of Variance (MANOVA) has been used to check the effect of a price drop on identified perceived evaluation across selected product categories. This study explored that in case of price drop customers become concerned about the product quality, value, brand reputation, and innovativeness. Based on the mean value, the study found that customers were more concerned about perceived quality in case of price drop followed by perceived innovativeness, perceived value, and perceived brand reputation. The research further demonstrated that product categories were significantly related to perceived evaluators in case of a price drop.