Psychological Pricing Strategy and its Influences on Consumer’s Buying Behavior in Kurdistan Region

Abstract

Recently finding a proper market became one of the major targets that producers are willing to recognize for their products. Also, dealing with consumer behavior is measured as one of the biggest and hardest aspect for suppliers as it changes frequently. The main objective of this study is to find out the impact of psychological pricing on consumer’s behavior in term of buying goods and services in five famous malls in Kurdistan Region- Iraq. To achieve this objective, current study adopts descriptive analytical method (DAM) by using factor analysis (FA) with (Principal Component Analysis) and (Person Correlation) methods, as well as, the primary data are from a survey of (221) sellers and (216) buyers who interested mall to meet their needs. It was conducted from 01/02/2019 to 01/03/2019. Distributing questionnaires are used among different types and groups of people as primary data to collect data and information as a way to achieve the study’s objective. Findings illustrate that the most influences factors on consumer’s behavior are (Advertisement for the products, Environment for the malls and Nine-end price). Beside these, nine-ending prices could be counted as one of the major factors that have a positive significant impact on consumer behavior. In addition, consumers with a small hedonic, low educated, low income, and younger consumers are prone to select the nine-ending priced products and services. Psychological pricing strategy has a significant impact on consumer’s buying behavior in Kurdistan Region. Having this study will contribute in providing information on people behavior in Kurdistan Region, which could leave benefit on local and foreign investors in order to know how to make a good marketing for their products in the society. Moreover, the results will be useful for any other upcoming researches in this field.