Impact of Price Reduction Sensitivity on Brand Switching and Storage: The Case of Saudi Arabia

Abstract

Sensitivity to price promotions has recently caught the attention of marketing researchers and professionals. It is true that lowering prices makes it possible to attract customers who are sensitive to such reductions, but is it profitable for the company to target those who are most sensitive to price reductions? The assumption is that sensitivity to price reductions reinforces brand switching and decreases re-purchasing rates. In order to test the relationships between the different variables, a two-section questionnaire was designed. The first section probes for information on the brands usually acquired and the second section targets re-purchasing behavior after buying at a price reduction. Thus, 231 Saudi female consumers were selected as a sample representing voluntary purchasers of hand washing powder. The results of this study highlight the impact of price reduction sensitivity on post-purchase behavior.