The impact of pricing strategy in retail sector

Big shopping malls, Super markets & Hypermarkets are growing rapidly by adopting aggressive pricing strategies to attract customer. These pricing & sales promotion strategies is turn affect the existing small retailers & customer buying behavior. The purpose of this research paper is to assess the attitude of customer towards pricing & sales promotion strategies. This paper investigated the customer behavior as regards to big shopping malls & traditional retailers. A total of 100 customers were interviewed to know their attitude & buying behavior towards sales promotion strategies in organized retail sector. The result finds that the customer attitude is affected by the sales promotional strategies adopted by the supermarkets & Big shopping malls. These sales promotional strategies also affected the business of unorganized retail sector. After sales services & long term relation with customer are the major business strategies adopted by the small players & unorganized retailer to retain customers. The result also indicates the traditional retailer's needs to redesign their business strategies to attract the customer & the organized retail sector must consider the customer values & their buying pattern. The first and foremost objective of the study is to make ourselves aware of the various pricing strategies of the organized retail sector, which now a days are prevailing in the market. Retailers have made the pricing as their tool to promote their product, by offering discounts on their products. Some of the main objectives of the report are as follows:

To study the various pricing strategies as a promotional tool opted by the organized retail sector

To know about the attitude of customer towards pricing strategies of retail shops.

To study the motivating factor which influence for buying the goods in retail sector?

The study aimed to explore the impact of pricing strategies as a promotional tool in organized retail sector in India. A total of 100 respondents were considered for the study i.e. 50 customers & 50 retailers from Panipat chosen as the study location and stratified random sampling used to select the respondent. Strata's were identified based on organized retailer's concentration and a list of organized retailer was prepared.

Initially organized retailers were approached and in-depth interview were conducted to know about their strategies. Then the customers were asked about the impact of the pricing strategies on their buying behavior to get more information. A pilot study was conducted with a sample of 100 respondents to know the feasibility of the questions for personal interview. After the required changes, the respondents were approached and an in-depth interview was conducted to get the data. Statistical tool such as Chi-Square test were used to get inference from the data.