See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/301753990

The Impact of Pricing on Consumer Buying Behavior in Saudi Arabia : Al-

Hassa Case Study

Article · May 2016

CITATIONS READS

35 83,183

2 authors:

Hussain Al-Salamin Eman Al-Salman

King Faisal University 6 PUBLICATIONS   39 CITATIONS   
16 PUBLICATIONS   60 CITATIONS   
SEE PROFILE
SEE PROFILE

Some of the authors of this publication are also working on these related projects:

corporate social responsibility View project

Chronic Care Continuous Quality Improvement CCCQI View project

All content following this page was uploaded by Hussain Al-Salamin on 01 May 2016.

The user has requested enhancement of the downloaded file.

European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.8, No.12, 2016

The Impact of Pricing on Consumer Buying Behavior in Saudi

Arabia : Al-Hassa Case Study
Hussain Al-Salamin 1* Eman Al-Hassan 2
1.University Campus , King Fiasal University, Saudi Arabia, Building No.7547, Al-Hasa 36344-4072
2.Housing Services, King Abdulaziz Hospital, Saudi Arabia, PO box 2477, Hofuf 31982

Abstract
The study of consumer behavior is very challenging task. If a company wants to survive, it should be able to
compete well. The main purpose of this research is to measure the impact of pricing strategies on consumers'
psychology and on their buying behavior accordingly. A questionnaire has been designed, distributed and filled
up by participants from Al-Hassa region. 433 responses were received from participants with 43.3% response
rate, where SPSS were used to analyzed the data collected. The findings show that there is a positive
relationship between prices and consumer buying behavior. It also showed that there is no statistically
significant difference between the responses of individuals “due to age, gender, marital status, qualification and
monthly salary” about the research's questions related to the three pricing strategies (Odd pricing strategy,
Bundle pricing strategy and Discount pricing strategy) except there is a statistically significant difference
between the responses of individuals “due to gender” about the odd pricing strategy. Depending on the founding
results, recommendations were set to retailers and dealers.
Keywords: Buying behavior, odd even strategy, bundle strategy, discount strategy, Consumer Psychology.

1. Introduction
There is a high competition between companies to get loyal customers and to sustain them. However, this is not
an easy task for marketers, because several companies and brands compete simultaneously to sustain customers
and get abundant profits. Studying consumer buying behavior has a vital role in understanding the factors that
influence consumers' buying decisions. Customers are the primary focus of the marketing process and the
benchmark to measure the success or failure of goods and services. Therefore, most of the companies study
consumer behavior to increase the possibility of their success.
Consumers take many decisions in their daily life and one of these is the buying decision. They decide
to buy some products because of several reasons: in need for these products, want to try them, products are
strongly recommended by others or the products will be given as a gift. However, companies in different
departments such as marketing and research and development study and analyze consumer behavior to set and
introduce either new product/service or to develop an existing once. For instance, companies try to study and
analyze the timing of purchasing, the buying mode, purchasing quantities, and the type of products or services.
From all of these efforts that have been done, the main goal is to satisfy consumers and to make them loyal. This
can be done by minimizing their costs and generate maximum revenue in smarter way.
Because of globalization and booming in using electronic websites and social media, which enables
consumers to do comparison between products and services with their prices at the same time, marketers need
smart methods to attract consumers and to compete in this global worlds.
Pricing is one of 4 P's of marketing mix which they are product, price, place and promotion. Pricing is
the only clear factor that produces money and provides obvious signal of success or failure of products and
services. Therefore, researchers in this study chose to closely highlight this factor.
Many scholars and researchers had conducted studies on consumer buying behavior. However, the
purpose of this study is to evaluate and measure the impact of pricing strategies on consumers' psychology and
their buying behavior at Al-Hassa. It highlights some strategies that are used by retailers to make the prices
attractive to the consumers, including odd even pricing, bundle pricing and discount pricing. It also guides
marketing managers with research and development mangers to get better understanding of the pricing strategies
that positively affect consumer buying behavior.

1.1 Purpose statement:

The main purpose of this research is to measure the impact of pricing strategies on consumers' psychology and
on their buying behavior accordingly.

62
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.8, No.12, 2016

1.2 Research hypotheses

Figure 1. Research hypothesis framework

H1: There is a positive relationship between prices and consumer buying behavior.
H2: There is a statically significant difference between the responses of respondents about the three pricing
strategies (odd even pricing, bundle pricing, and discount pricing) due to demographic variables (Age, gender,
Marital Status, qualifications, and monthly salary).

2. Literature Review
2.1 Relevant Literature
Researchers have been conducted many studies to understand consumer buying behavior such as : Manali
Khaniwale (2015) has conducted a study which analyzed the theoretical aspects of consumer buying behavior
and the factors that influence it. Also, he reviewed the relationship between consumer buying behavior and the
factors that influence the consumer’s purchasing process and purchase decision. His research has sufficient
evidence to prove that the consumer’s buyer behavior is significantly influenced by the consumer’s internal and
external factors. According to H. Al-Salamin, J. Al-Baqshi, M. Al-Rassasi and H. Al-Salem (2015), thier results
showed that the price of well-known brand products affects the purchase process negatively. Although young
people are interested in purchasing brand products, their low income prevents them from the buying process
while they are considered as a major segmentation for brand names. According to Aysel Boztepe (2012),
environmental awareness, green product features, green promotion activities and green price affect green
purchasing behaviors of the consumers in positive way. Demographic characteristics have moderate affect on
model. Lefa Teng (2007) argued that when a price discount with and without a minimum purchase requirement
is applied to a brand in a hold set, the brand moves from the consumers' hold set to the consideration set.
However, the effects of the two types of price discounts on consumers' attitudes and purchase intentions are not
significantly different. According to Junyean Moon, Doren Chadee, and Surinder Tikoo (2006), their results
indicate that individualism is the only culture dimension to have a significant effect on purchase intention.
Product type and individualism by price interaction also have a significant effect, whereas price does not. Bruce
L. Alford and Abhijit Biswas (2002) argued that consumers’ level of sale proneness influences their evaluation
of all three outcome variables, while price consciousness influences only search intention. Additionally,
significant interaction effects were found between discount level and price consciousness and between price
consciousness and sale proneness. Haemoon Oh (2000) stated that the traditional customer value process to be
useful for lodging research and marketing. In addition, brand awareness and price fairness concepts were found
to play significant roles in the customer value process. Indrajit Sinha and Rajeev Batra (1999) stated that
perceived category risk and perceived price unfairness of national brands in that category are significant
antecedents of consumer price consciousness, and that variations in such price consciousness across categories is
a significant reason why consumers buy private label brands (PLBs) more in some categories than in others.
Additionally, we show that perceived price–quality association has a significant effect on private label purchase
in risky categories.

2.2 Consumer Psychology and Pricing

To price is to decide the amount required as payment for (something offered for sale) as stated in Oxford
Manpower Dictionary (2002).
According to Rigges (2008), pricing is the process of determining and applying prices to goods and
services. It is one of the four Ps of marketing (Product, Place, Price and Promotion) and it is perhaps the most

63
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.8, No.12, 2016

important one because it is the only factor that generates revenue to the company. Prices are determined by the
balance of supply and demand and set with a certain degree of confidence that consumers will pay it.
Kotler & Keller(2012) stated that price is the one element of the marketing mix that produces revenue;
the other elements produce costs. They also stated that purchase decisions are based on how consumers perceive
prices and what they consider the current actual price to be. Understanding how consumers arrive at their
perceptions of prices is an important marketing priority.
2.2.1 Odd even pricing
Various explanations are offered for the widespread use of odd pricing. One explanation is that customers see an
odd price as being much cheaper than it actually is in relation to the nearest round figure. That is, customers see
a price of $4.99 as being closer to four dollars than nearly five dollars. It is believed that this illusion of much
cheaper products triggers an enhanced buyer response (Boyd & Massy 1972)figure. Thus when a price is $4.99,
a consumer will recall that the price is $4.00, and then maybe that it is $4.90, but rarely that it is exactly $4.99.
The reason offered for not instead rounding $4.99 to $5.00 is based on memory processing time. Odd even
pricing (also price ending, charm pricing) is a pricing strategy based on the theory that certain prices have a
psychological impact. It is designed to influence the psyche of the customers and attract them to buy (Sahaf
2013)the intention of odd even pricing is to make the price appear considerably lower than it is.
2.2.2 Bundle pricing
Product bundle pricing is a pricing strategy in which several products, services, or any combinations of them are
presented to the customers as a single package with a single price. Some research papers have been published so
far which are devoted to different aspects of bundle pricing. Linde (2009) studied and compared three pricing
strategies (bundling, versioning and windowing) in the field of movies. Ancarani (2002) described and analyzed
the role of internet to present bundles of information goods using online tools. Furthermore, Simon and Butscher
(2001) demonstrated that profitability could increase 10% to 40% using bundle pricing.
2.2.3 Discount pricing
Gedenk (2002), has explained the short term and long term effects of promotional pricing to a firm. According to
his view, in the short run the consumers are switching to the particular store which offers promotional prices.
And also, the consumers are switching to the brands which are engaged in promotional pricing frequently. And
new customers are generated through this strategy. And promotional pricing accelerate the purchases and
ultimately it contributes to the firm to generate higher profits.
In the long run, the brand loyalty is created through price promotions and ultimately the loyalty for the
store occurs.

3. Consumer buying behavior

No matter how old, educated, rich, and talented we are, we are all consumers. Thus, understanding the
consumers' behavior becomes a very important task for marketers, dealers and salesmen.
According to Manali Khaniwale (2015) Consumer behavior involves the study of individuals and the
method they employ to choose, utilize, and set out products and services to fulfill their wants and the effect that
these method have on the consumer and the society as a whole. Consumer behavior refers to all the thought,
feelings and actions that an individual has or takes before or while buying any product, service or idea. Buyer
behavior is the concept which answers what, why, how, when, and where an individual makes purchase. As a
result, the outcome of buyer behavior is the buyer’s decision. According to Kotler & Keller (2012) consumer
behavior is the study of how individuals, groups, and organizations select, buy, use, and dispose of goods,
services, ideas, or experiences to satisfy their needs and wants.
One of the common models of consumer decision making process has been offered by Blackwell et al
(2006);According to him, the five stages of consumer decision making process are followings: problem/need
recognition, information search, evaluation of alternatives, purchase decision made and post purchase evaluation

64
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.8, No.12, 2016

4. Factors affecting buying behaviors

Figure 2. Internal and external factors affecting consumer buying behavior

Source: Consumer buying behavior Manali Khaniwale (2015)
A consumer’s buying behavior is influenced by internal and external factors as it was stated in figure 2.
These factors can be classified into external (cultural and social) and internal (personal and psychological)
factors. Manali Khaniwale (2015) research has sufficient evidence to prove that the consumer’s buyer behavior is
significantly influenced by the consumer’s internal and external factors. The main factors that have immense
impact on the buying process and final decision of consumers are cultural, social, personal, and physiological.

5. Background about Al-Hassa

"Al-Hassa is an oasis rich with green spaces and water springs. It is a land of welfare, beauty, and good people.
Also, it is the biggest governorate in the Eastern Province and a place of multiple historical civilizations and
archeological sites. Al Hassa is an oasis of dates and water springs, and it is the greenest place in the whole of
eastern province in the Kingdom. It has more than a million and a half palm trees which is the largest palm oasis
in the world, placing it in the edge for the Seven Wonders in the World contest strongly. (Saudi tourism website)
According to statistics issued by central department of statistics and information (CDSI) in 2010, the population
of Al-Hassa is approximately 1,220,655 people which (983,305 citizen) and (237,350resident). The total area of
Al-Hassa is 530,000 Km2 which 68% of total area of eastern region and 24% of total area of Saudi Arabia. The
geography location of Al-Hassa is very important since it is boundaries with UAE, Qatar and Oman." ( H. Al-
Salamin. J. Al-Baqshi, M. Al-Rasasi ans H. Al-Salem )

6. METHODOLOGY AND PROCEDURE

"An online questionnaire is used to collect quantitative data. Researchers have prepared a questionnaire and a set
of questions that were asked to the intended participants. Excel and SPSS are used to provide a descriptive
analysis. After a questionnaire is written and completed, a pilot study, and exploration study were conducted and
sent it to people to critique it. The pilot study suggested some clarifications to the survey. Both Arabic and
English language versions were available. The Arabic questionnaire employed Brislin’s (1986) back-translation
method to ensure that the questionnaires have the same meaning in both languages (H. Al-Salamin & A. Al-
Hammad (2014)). Completed time and effort for finalizing this questionnaire was around two months."

6.1 Population and Sample Size

"The sample size was calculated to guarantee a sufficient number of respondents in each subgroup. Thus, the
following formula has been used to estimate the population sample size (The Survey System, 2007):

Minimum Sample Size (n) , t 2 × p × (1 − p )

n= (1)
Where: m2
n = required sample size (minimum size)
t = Confidence level at 95% (standard value of 1.96)
p = Estimated fractional population of subgroup (1,220,655)
m = Margin of error at 5% (standard value of 0.05
After we apply the above equation the required sample size is 385. The questionnaire was prepared by using
Google Docs application. The survey questionnaires were distributed to more than 1000 participants, 433
responses were received from participants with 43.3% response rate. The survey is emailed to many persons via

65
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.8, No.12, 2016

social media e-mails, WhatsApp, twitter, and Facebook in both languages: Arabic and English." (H. Al-Salamin
& A. Al-Hammad (2014))
Furthermore, reliability and validity have been tested by using coefficient of "Cronbach's Alpha" which
gave satisfactory results after applying it on each group and section in the questionnaire separately, and then
applying it again on the entire questionnaire. The results were as summarized in the table (1):
Table 1. Reliability and Validity of data
Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
.682 .625 20

No of Reliability
Items Cronbach's Alpha Validity =

20 .682 .826
Knowing that a reliability coefficient of .70 or higher is considered "acceptable" in most social science
research situations. Here in this case is almost .70 which will be acceptable.
For the purpose of interpreting and discussing the results of statistical analysis of data collected, the
researchers will be relying on (the length of cells of the scale) which represents the range of cells to Likert scale
divided by the number of cells of the scale (5-1=4) (4/5 = 0.80). (0.80) is then added to the lowest value in the
scale, which is equal to (1) to determine the upper limit for the first cell, and thus became the standard length of
the cells as follows:
Table 2. The length of cells
Strongly Agree 5 - 4.20
Agree 4.19 –3.40
Neutral 3.39 –2.60
Disagree 2.59 –1.80
Strongly disagree Less than1.80

5. Findings and Discussion

The following tables show the frequencies and percentages used to identify the characteristics of the study
sample:
Table 3. Distribution of participants according to age variable
Age
Cumulative
Frequency Percent Valid Percent Percent
Valid Under 25 97 22.4 22.4 22.4
25-34 195 45.0 45.0 67.4
35-44 107 24.7 24.7 92.1
45-54 27 6.2 6.2 98.4
55 or older 7 1.6 1.6 100.0
Total 433 100.0 100.0

Table 4. Distribution of participants according to gender variable

Gender
Cumulative
Frequency Percent Valid Percent Percent
Valid Male 362 83.6 83.6 83.6
Female 71 16.4 16.4 100.0
Total 433 100.0 100.0

66
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.8, No.12, 2016

Table 5. Distribution of participants according to marital variable

Marital Status
Cumulative
Frequency Percent Valid Percent Percent
Valid Single 107 24.7 24.7 24.7
Married 326 75.3 75.3 100.0
Total 433 100.0 100.0

Table 6. Distribution of participants according to qualifications variable

Qualifications
Cumulative
Frequency Percent Valid Percent Percent
Valid high school 100 23.1 23.1 23.1
Diploma 95 21.9 21.9 45.0
Bachelor 191 44.1 44.1 89.1
Higher education 47 10.9 10.9 100.0
Total 433 100.0 100.0

Table 7. Distribution of participants according to monthly salary variable

Monthly Salary
Cumulative
Frequency Percent Valid Percent Percent
Valid 10000 or less 266 61.4 61.4 61.4
more than 10000 167 38.6 38.6 100.0
Total 433 100.0 100.0
It is clear from table 3 that most participants are from (25-34) age with 45% which followed by (35-44)
age with 24.7%, while the least percentage was (55 or older) with only 1.6%. From table 4 , it is shown that male
was the majority of participant with 83.6% while the female was the rest. While in marital status the married
participants were the majority with 75.3% as it is shown in table 5. Table 6 mentioned that bachelor degree
holders were the majority of participants with 44.1% followed by high school holders with 23.1% while 10.9%
of participants were higher education holders.
Table (8) shows that quality and price are significant factors that influence purchase intention. 52% of
the respondents prioritize the quality and 30% of them prioritize the prices. It also shows that brand and design
are less significant factors that influence consumers' purchase decision as 11% of the respondents prioritize the
design and only 5% of them prioritize the brand. Based on this result, the first hypothesis is accepted. There is a
positive relationship between prices and consumer buying behavior.
Table 8. a. Dichotomy group tabulated at value 1.
Ranking Frequencies
Responses Percent of
N Percent Cases
Ranking Price 136 30.5% 31.4%
Quality 234 52.5% 54.0%
Brand 23 5.2% 5.3%
Design 53 11.9% 12.2%
Total 446 100.0% 103.0%

67
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.8, No.12, 2016

Table 9. Odd pricing strategy

Strongly Strongly Std.
Odd Pricing
disagree Disagree Neutral Agree agree Mean Deviation
strategy
Count % Count % Count % Count % Count %
When buying, the
way of writing 2.69
the prices (such
71 16.4% 167 38.6% 68 15.7% 79 18.2% 48 11.1% 1.255
as 13.99 SR)
attracts me to
buy?
I prefer to buy
products that 2.76
have odd prices 67 15.5% 138 31.9% 103 23.8% 80 18.5% 45 10.4% 1.219
(such as SR
19,29,....ETC)
I can save money
when buying 2.72
products that 66 15.2% 148 34.2% 105 24.2% 70 16.2% 44 10.2% 1.201
have odd prices
like 23,21
Total 2.72

Table 10. Bundle Pricing strategy

Strongly Strongly Std.
Bundle Pricing
disagree Disagree Neutral Agree agree Mean Deviation
strategy
Count % Count % Count % Count % Count %
Products have
bundle offers (Buy 172 39.7% 191 44.1% 45 10.4% 19 4.4% 6 1.4% 1.84 .881
one and other free)
attract me to buy
more
Products have
bundle offers ( Buy 122 28.2% 203 46.9% 74 17.1% 24 5.5% 10 2.3% 2.07 .938
one and get gift)
attracts me to buy
products
Total 1.95

Table 11. Bundle Pricing strategy

1 branded Bundle of 2 unbranded
Bundle Pricing strategy pen pens
Count % Count %
If both the below options cost the same. Which option do you 349 80.6% 84 19.4%
prefer?

68
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.8, No.12, 2016

Table 12. Discount Pricing strategy

Strongly Strongly Std.
Discount
disagree Disagree Neutral Agree agree Mean Deviation
Pricing strategy
Count % Count % Count % Count % Count %
I may buy fake
products just
because their 46 10.6% 159 36.7% 89 20.6% 69 15.9% 70 16.2% 2.90 1.262
prices are lower
than the originals
Low prices of
products increase 179 41.3% 190 43.9% 31 7.2% 21 4.8% 12 2.8% 1.84 .951
my willingness to
buy them
I prefer to buy
my needs during 197 45.5% 161 37.2% 51 11.8% 21 4.8% 3 .7% 1.78 .885
sales seasons
I always drive a
bargain when 137 31.6% 175 40.4% 73 16.9% 33 7.6% 15 3.5% 2.11 1.045
buying a product
Total 2.15
Table (9) shows that the respondents have neutral response towards the questions of Odd pricing
strategy as the total mean value for the responses is (2.72) which is positioned in the third category of the five
point Likert scale (Neutral Scale).
Table (10) shows that the respondents have disagree responses toward the bundle pricing strategy as the
total mean value for the responses is (1.95) which is positioned in the fourth category of the five point Likert
scale (Disagree Scale).
Table (11) shows that respondents prefer to buy 1 branded pen rather than bundle of two unbranded
pens. 80% of the responses support the first choice which shows that brand is a significant factor that influence
purchase intention.
Table (12) shows that the respondents have disagree responses toward the bundle pricing strategy as the
total mean value for the responses is (2.15) which is positioned in the fourth category of the five point Likert
scale (Disagree Scale).
The researchers refer the above mentioned results to either of the following reason:
Respondents are currently better aware of the marketing strategies than they do few years ago.
• Most of the respondents are well educated (hold bachelor degree)
• Most of the respondents are rational and aware that such strategy is used by sellers to make the price
more attractive, utilize consumers' desire and enhance their profitability
The following tables are related to the second hypothesis in this paper: There is a statically significant difference
between the responses of respondents about the three pricing strategies (odd even pricing, bundle pricing, and
discount pricing) due to demographic variables (Age, gender, Marital Status, qualifications, and monthly salary).
Table 13. Age- related differences in response to the three pricing strategies
ANOVA
Sum of Squares df Mean Square F Sig.
Odd Between Groups 37.805 4 9.451 .983 .416
Within Groups 4114.204 428 9.613
Total 4152.009 432
Bundle Between Groups 19.080 4 4.770 1.901 .109
Within Groups 1074.037 428 2.509
Total 1093.118 432
discount Between Groups 57.407 4 14.352 1.823 .123
Within Groups 3369.470 428 7.873
Total 3426.878 432
The ANOVA test shows that there is no difference between the responses of individuals “due to age”
about the Odd Pricing strategy, the bundle strategy and the discount strategy as the values of F test are more than
0.05 (.983, 1.901 and 1.823).

69
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.8, No.12, 2016

Table 14. Gender- related differences in response to the three pricing strategies
Group Statistics
Gender ( QRST‫)ا‬ N Mean Std. Deviation Std. Error Mean
Odd Male 362 8.3343 3.11308 .16362
Female 71 7.3521 2.91841 .34635
Bundle Male 362 3.9254 1.52993 .08041
Female 71 3.8028 1.87936 .22304
discount Male 362 8.6160 2.71327 .14261
Female 71 8.7042 3.31402 .39330

Independent Samples Test

Levene's
Test for
Equality of
Variances t-test for Equality of Means
95% Confidence
Sig. Interval of the
(2- Mean Std. Error Difference
F Sig. t df tailed) Difference Difference Lower Upper
Odd Equal variances .813 .368 2.455 431 .014 .98214 .40007 .19581 1.76847
assumed
Equal variances 2.564 103.729 .012 .98214 .38305 .22251 1.74178
not assumed
Bundle Equal variances 5.418 .020 .593 431 .553 .12260 .20662 - .52871
assumed .28352-
Equal variances .517 89.088 .606 .12260 .23709 - .59369
not assumed .34849-
Discount Equal variances 7.441 .007 - 431 .810 -.08820- .36597 - .63110
assumed .241- .80751-
Equal variances - 89.316 .833 -.08820- .41836 - .74302
not assumed .211- .91943-
The Independent- Samples T Test shows there is no difference between the responses of individuals
“due to gender” about the bundle and discount pricing strategies as the values of T test sig. (2 tailed) are more
than 0.05. (, .606 and .833) while there is a statistically difference between the responses of individuals “due to
gender” about the odd pricing strategies as the values of T test sig. (2 tailed) are less than 0.05. which is (.012).
Table 15. Marital- related differences in response to the three pricing strategies
Group Statistics
Marital Status N Mean Std. Deviation Std. Error Mean
Odd Single 107 8.2991 3.11180 .30083
Married 326 8.1319 3.10004 .17170
Bundle Single 107 3.9159 1.67738 .16216
Married 326 3.9018 1.56388 .08662
discount Single 107 8.7103 2.77798 .26856
Married 326 8.6043 2.83275 .15689

70
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.8, No.12, 2016

Independent Samples Test

Levene's Test
for Equality of
Variances t-test for Equality of Means
95% Confidence
Interval of the
Sig. (2- Mean Std. Error Difference
F Sig. T df tailed) Difference Difference Lower Upper
Odd Equal .008 .927 .484 431 .629 .16716 .34571 -.51233- .84666
variances
assumed
Equal .483 180.073 .630 .16716 .34638 -.51632- .85064
variances
not
assumed
bundle Equal .384 .536 .079 431 .937 .01405 .17743 -.33469- .36279
variances
assumed
Equal .076 170.584 .939 .01405 .18384 -.34885- .37694
variances
not
assumed
discount Equal .039 .844 .337 431 .736 .10599 .31412 -.51141- .72338
variances
assumed
Equal .341 183.721 .734 .10599 .31103 -.50766- .71963
variances
not
assumed
The Independent- Samples T Test shows there is no difference between the responses of individuals
“due to Marital Status” about the three pricing strategies as the values of T test sig. (2 tailed) are more than 0.05.
(.630, .939 and .734)
Table 16. Qualifications- related differences in response to the three pricing strategies
ANOVA
Sum of Squares df Mean Square F Sig.
Odd Between Groups 183.999 3 61.333 6.631 .000
Within Groups 3968.010 429 9.249
Total 4152.009 432
Bundle Between Groups 17.098 3 5.699 2.272 .080
Within Groups 1076.020 429 2.508
Total 1093.118 432
discount Between Groups 106.316 3 35.439 4.579 .004
Within Groups 3320.561 429 7.740
Total 3426.878 432
The ANOVA test shows that there is no difference between the responses of individuals “due to
qualifications” about the Odd Pricing strategy, the bundle strategy and the discount strategy as the values of F
test are more than 0.05. (6.631, 2.272, and 4.579)

71
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.8, No.12, 2016

Table 17. Monthly salary- related differences in response to the three pricing strategies
ANOVA
Sum of Squares df Mean Square F Sig.
Odd Between Groups 82.635 1 82.635 8.752 .003
Within Groups 4069.374 431 9.442
Total 4152.009 432
Bundle Between Groups 1.600 1 1.600 .632 .427
Within Groups 1091.518 431 2.533
Total 1093.118 432
discount Between Groups 43.377 1 43.377 5.525 .019
Within Groups 3383.501 431 7.850
Total 3426.878 432
The ANOVA test shows that there is no difference between the responses of individuals “due to
Monthly salary” about the Odd Pricing strategy, the bundle strategy and the discount strategy as the values of F
test are more than 0.05. (8.752, .632, and 5.525)

5. Conclusion and Recommendations

Through this research, it is concluded that there is a positive relationship between prices and consumer buying
behavior (suitable prices make consumers more willing to purchase items). It also showed that there is no
statistically significant difference between the responses of individuals “due to age, gender, marital status,
qualification and monthly salary” about the research's questions related to the three pricing strategies (Odd
pricing strategy, Bundle pricing strategy and Discount pricing strategy) except there is a statistically difference
between the responses of individuals “due to gender” about the odd pricing strategy.
Based on the paper's conclusion, retailers and dealers are recommended to carefully study consumers
buying behavior which is one of the most successful ways to know consumers’ interests when making a purchase
decision and to set suitable prices to their items as pricing has a direct impact on a company's revenue and
consequently to its success. It is recommended that to segment consumer based on demographic characteristics
and study carefully their needs and willingness to buy products or services. Moreover, here is an important factor
that affect consumer buying behavior in positive way which is corporate social responsibility ( CSR ). If the
company socially responsible and announce that the part of this payment of selected products will donate to
non-profit organization or for event inside society, which will encourage consumer to select the products
impulsively.

References
Alford, B. L., & Biswas, A. (2002). The effects of discount level, price consciousness and sale proneness on
consumers' price perception and behavioral intention. Journal of Business Research, 55(9), 775-783.
Al-Salamin Hussain, and Jalal Al-Baqshi. "Micro-Factors Influencing Site Selection for Small and Medium
Enterprises (SMEs) in Saudi Arabia: Al-Hassa area using Analytical Hierarchy Process (AHP)
Analysis." European Scientific Journal 11.28 (2015): 115. Print.
Al-Salamin Hussain, Al-Baqshi Jalal, Al Rasasi Mustafa , and Al Salem Haitham. "Behavioral Measurement of
Young Generation towards Brand Products in Saudi Arabia: Al-Hassa Case Study." Journal of
Marketing and Consumer Research 11.28 (2015): 61. Print.
Al-Salamin, Hussain A., and Abdulrahman A. Al-Hammad, "ATTITUDE OF SAUDI CONSUMERS
TOWARDS ONLINE SHOPPING WITH SPECIAL REFERENCE TO AL-HASSA REGION
(KSA)." Journal of WEI Business and Economics 3rd ser. 3 (2014): 39-56. Web.
Ancarani, F. “Pricing and the Internet: Frictionless Commerce or Pricer’s Paradise?.” European Management
Journal 20(6) (2002): 680‐687.
Boyd HW & Massy WF (1972). Marketing Management. USA: Harcourt Brace Jovanovich.
Boztepe, A. (2012). Green Marketing and Its Impact on Consumer Buying Behavior. European Journal of
Economic and Political Studies,5(1), 5-21.
CDSI. Riyadh. Central Dept. of Statistics & Information. Saudi Arabia. Statistical sector. Web.Committees .
Alahsa Chamber. N.p., n.d. Web. 8 Oct 2014.
Frank Linde, (2009) "Pricing information goods", Journal of Product & Brand Management, Vol. 18 Iss: 5,
pp.379 - 384
Gedenk K (2002) Verkaufsfo¨rderung, 1st edn. Verlag Vahlen, Mu¨nchen
http://sauditourism.sa/en/Explore/Regions/Eastern/Ahsa/Pages/default.aspxvivisited 8.2.2016
http://web.archive.org/web/20070630104605/http://www.alhasa.gov.sa/alhasa.aspx visited 8.2.2016

72
 European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.8, No.12, 2016

Kotler, P., & KELLER, K. (2012). Marketing management. Upper Saddle River, NJ: Prentice Hall.
Manali Khaniwale, “Consumer Buying Behavior” International Journal of Innovation and Scientific Research,
vol. 14, no. 2, pp. 278–286, April 2015.
Moon, Junyean, Doren Chadee, and Surinder Tikoo. "Culture, Product Type, and Price Influences on Consumer
Purchase Intention to Buy Personalized Products Online." Journal of Business Research 61.1 (2008):
31-39. Web.
Oh, H. (2000). THE EFFECT OF BRAND CLASS, BRAND AWARENESS, AND PRICE ON CUSTOMER
VALUE AND BEHAVIORAL INTENTIONS. Journal of Hospitality & Tourism Research,24(2),
136-162.
R. D. Blackwell, P. W. Miniard, and J. F. Engel, Consumer Behavior, 10th ed., South-Western: Thomson, 2006.
Riggs, T. (2008). Everyday finance: Economics, personal money management, and entrepreneurship (Vol. 2).
Detroit, Michigan: Gale Cengage Learning.
Sahaf, M. A. (2013). Strategic Management: Making Decisions for Strategic Advantage. New Delhi: PHI
learning private limited.
Simon Hamann and Butcher Stephan A., 2001, Individual pricing: Boosting profitability with the higher art of
power pricing, European Management Journal Vol. 19, No. 2, pp109–114
Sinha, Indrajit, and Rajeev Batra. "The Effect of Consumer Price Consciousness on Private Label Purchase."
International Journal of Research in Marketing 16.3 (1999): 237-51. Web.
Steel, M. (2000). Oxford wordpower dictionary:. Oxford: Oxford university press.
T. (n.d.). Consumer and Business Buyer Behavior. Retrieved February 7, 2016, from
https://www.fox.temple.edu/vault/video/consumer-and-business-buyer-behavior/
Tanner, J. F., & Raymond, M. A. (2011). Principles of marketing [2]. Retrieved February 15, 2016, from
http://catalog.flatworldknowledge.com/bookhub/reader/5229?e=fwk-133234-ch03_s01
Teng, Lefa. "A Comparison of Two Types of Price Discounts in Shifting Consumers' Attitudes and Purchase
Intentions." Journal of Business Research 62.1 (2009): 14-21. Web.

First A. Author Hussain Al-Salamin is holding MBA from King Fiasal University (KFU) (2014) with highest
performance in his class. He completed B.A. in Electrical Engineering from King Fahad University of Petroleum
and Minerals (2007) . Eng. Hussain joined KFU in 2010 as project engineer at new construction of University
Campus. His professional interest in researching include : Operation Management, Supply-Chain Management,
Marketing Management, E-Business, Consumer behaviour, and Environment and Recycle. He has ten published
papers.

Second A. Author Eman Al Hassan, earned MBA degree from King Faisal University, Al Ahsa (2015) and
Bachelor degree in English Language from King Faisal University, Al Ahsa (2005). She works as a Housing
Services Planner from King Abdulaziz Hospital, Al Ahsa. She has a ten years of formal experience in
administrative work with particular focus on support services. She is interested in research and has one published
study. (The Impact of Monetary and Non- Monetary Incentives on the Performance of Employees in the
Government hospitals in Al Ahsa Region)

73

View publication stats