Abstract
This empirical study contributes towards identifying the effect of both fake and real discounts in the Indian marketing environment. A common but unsustainable practice in India is to increase the selling price and then offer a discount on the product. Increasing sales based on fake discount pricing strategy is a primary business development objective in India. The discounts, however, vary across store type and time and are based on product features. The selected databases were collected from the top five Indian e-commerce portals in terms of volume of sales, and from popular brick and motor outlets of tier 2 and tier 3 cities in India. The empirical results indicate that offers based on price in India had an impact of 2.8 times higher than the actual quality of the product. The outcomes suggest that marked price has a significant impact on consumer’s behavior. The results also indicate the existence of a strong correlation between trapping fake discounts and purchase by deceiving and persuading customers in India. Research is empirical in nature and respondents have been selected based on purposive sampling. The study is limited to tier 2 and 3 cities of India for 250 days, and the results are applicable to online and offline retail stores.
Highlights
Pricing is one of the most important parts of a company’s marketing mix, as part of the marketing strategy
This article is based on malls in tier 2 and tier 3 cities and e-commerce portals in India to collect the data on discounts on offer
The data are on the sales of discount-offered goods and the effect on purchase decision taken by the customers in the malls
Summary
Pricing is one of the most important parts of a company’s marketing mix, as part of the marketing strategy. A study of the literature reveals the effect of the varieties of prices on the behavior of the Indian customer [1] This effect, and its extent, are of paramount importance to marketers and customers alike. The data are on the sales of discount-offered goods and the effect on purchase decision taken by the customers in the malls. This research is aimed at the influence of discounts on an ill-informed customer and his unfounded choices This leads to marketers increasing the marked price to an imaginary high and slashing the prices to induce customer purchase; 78% of the products surveyed in the malls across two cities in India had practiced this dubious and unsustainable pricing method [2]
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