Not surprisingly, fares and price is one of the most critical attributes in buying products or services. Mostly fares are the key element towards satisfactions level of students towards rail transportation. Price fares play a vital role in the customer satisfaction because the charges of the product directly affect the customer, so if it is affordable then customers satisfy it and willing to purchase the product again and again in future （Gustafsson et al. 2005). Anderson et al.（1994）; Cronin et at.（2000） and Virvilaite（2008） studying price relationship with satisfaction scientists indicated that “the level of satisfaction, depends on service quality, price”. As consumers are now demanding higher quality in item than ever before (Leonard and …show more content…
Further Kim (2006) stated that "fairness of price is a psychological factor that plays an important role in the customer’s reaction to the paid price". According to the different research price of any product can standard of the brand or vice versa (Turel et al. 2006). Many researchers from different sector such as management, marketing, and economics study price from different aspect which is behavioural, managerial, and quantitative perspective. Despite being an important indicator influencing consumer decision-making and buying behavior, price fairness has just recently become one of the emerging agendas in price literature (Bolton, Warlop, & Alba, 2003). Kotler and Armstrong (2010) said that price is the sum of the amount that consumers trade for the goods or service. Recent research efforts have isolated several factors that influence consumers' price unfairness perceptions as well as potential consequences of these perceptions (Bolton et al.(2003); Vaidyanathan and Aggarwal（2003); Xia et al.(2004). Jacoby and Olson (1977) defined objective price as “the actual price of a product or service”. According to Stanton, Micheal and Bruce (1994) they define price as the total sum of money or goods needed to get another combination of products. From the researcher based on marketing …show more content…
Price is a factor will influence the total number of bus passenger. Shoemaker (1998) found that students considered reasonable price an important variable on choosing mode of transportation. As a result, the researcher believes that price and value is a critical factor to be included in this study in determining the customers’ satisfaction and their behavior intention According to DatukAsfar Ali (2014) “Customers would not be travelling due to the rising costs,” he said. Matzler, Würtele and Renzl, (2006) postulate that "customers make price comparisons during the purchasing decision making processes". The price comparison refers to "relative prices and is affirmed by a body of literature that indentifies the effect of comparative claims on consumer perceptions of price" according to Compeau and Grewal, (1994). Price fairness judgments may be based on previous prices, competitor prices, and profits (Bolton et al., 2003). In another study of Herrmann et al., (2007), it was concluded that behavior intention is directly influenced by price perceptions while indirectly through the perception of price fairness. Pricing fairness can be inferred from perceived price fairness. A perceived fair price may increases the perception of a fair pricing scheme (Kimes and Wirtz, 2003). Buyers, having perceived that the rules pertaining to the price have not been followed, will infer that the rules
Saha, G. C., & Theingi. (2009). Service quality, satisfaction, and behavioural intentions: A study of low-cost airline carriers in Thailand. Managing Service Quality , 19 (3), 350-372.
of price versus service in the airline industry as a whole, as well as, the
Have you ever wondered why prices end with.99 or why it is that businesses are always making some kind of deal? Are these deals as beneficial as the customer thinks they are? What about the items priced higher than usual? Most people tend to think the higher the price the better quality, right? Well, these are some of the topics this paper is going to help you better understand.
As we know, there are a lot of business types in the world. Each of the businesses has their own strategies to survive in this competitive business world. Economically, price discrimination is usually regarded as desirable, since it often increases the efficiency of an economy. In contrast, it often arouses strong opposition from a public. Like in this particular case, which is online price discrimination, a majority of consumers think that this kind of discrimination is illegal. Generally, discrimination has a very negative implication in our society, and various forms of it, which those based on age, gender, race and religion, are illegal. However, price discrimination is a pricing strategy that is widespread in the economy and to avoid negative
The price must be suited to the target market and to the image of the
Price discrimination is a pricing strategy that charges customers different prices for the same product or service. In pure price discrimination, the business charges a customer the maximum price that they are willing to pay . This practice is becoming more and more important for customers because of the discrete ways that businesses are finding to make it easier to implement them in many different ways. These are categorized into three forms; First-degree price discrimination, second-degree price discrimination and third-degree price discrimination. First degree price discrimination is where consumers pay the exact price that they are prepared to pay and where the producer charges different prices depending on how much the consumer is looking
A very important factor in the marketing mix is the price. Since a service is not physical, its value must be carefully thought out. The price is sometimes the first thing which tourists look at. Depending on the type of service, perceptions of value differ. The price can act as an indicator of quality. A low price may seem as an attempt to cheat the customer in some way. People expect quality to cost and are willing to pay a higher price for it. That is why the service provider must be aware of how much people would pay for his service and why.
Price is the values entirety that consumers trade for the advantages of having or utilizing the product or services. Different places and cultural have different spending culture. Therefore the price has to be relevant according to the product offer because it can reflect the image of a
Price Elasticity is the measure in responsiveness of consumers to changes in the price of a product or service. The evaluation and consideration of this measure is a useful tool in firms making decisions about pricing and production, and in governments making decisions about revenue and regulation. “Price Elasticity is impacted by measurable factors that allow managers to understand demand and pricing for their product or service; including the availability of substitutes, the consumer budgets for the product or service, and the time period for demand adjustments.” The proper consideration of Price Elasticity allows managers to set pricing such that the effect on Total Revenue is predictable and adjustments to production are timely. The concept of Price Elasticity is employed in the management of commercial firms and government.
Are the prices offered fair? The question helps the company realize how the customers perceive the product about price.
Price discrimination is a corporate strategy where a seller offers the same product to customers at different prices. This practice is a technique where sellers appeal to a wide range of customers and capitalize on opportunities to maximize profits. The word discrimination often has a poor connotation. However, in terms of finances, the word discrimination merely denotes to how sellers can sway market price in order to meet the demand of buyers. In the United States, price discrimination generally is discussed and debated at the higher education level. In higher education, price discrimination denotes a scenario where academies charge unlike tuition prices to students for the same quality of education. This practice can be done at both the university and departmental levels as well. In order for price discrimination to occur, the seller must have the ability to adjust price. Price discrimination is also used by a seller that is offering a product that has a strong consumer demand with few alternatives. This is done because customers are willing to pay more for a given product. This entry provides examples of price discrimination in the private sector and in higher education.
price as the major decision-making tool for customers (“Global Consumer Electronics”, 2013). This lack of
Price is defined as the quantity of payment for something. It shows price as an exchange ratio between goods that pay for each other. Price also related to the market the company’s planned value positioning of its product or brand. As well as their overall assessment of the retailer, price has gradually become a central point in consumers’ decisions of offer value. Price suggestively influences consumer choice and occurrence of purchase. For example, discount pricing makes consumers switch brands and buy products earlier than necessary.
Economics is an extremely important aspect of the today’s society, especially, since it aids in the allocation of limited resources. Supply and demand are aspects and fundamental concepts of economics, which is considered the foundation of a market economy. In fact, the association between demand and supply underlie the forces responsible for the allocation of resources. Therefore, given the importance of supply and demand and its impact on the market economy, one will elaborate on the law of supply and demand. In addition, one will discuss how these fundamental concepts of economics apply and impact the prices of Airline tickets.
Price is what a buyer must give up to obtain a product. It is often the most flexible of the four marketing mix element that the price is the quickest element to change. A marketer can raise or lower prices more frequently and easily than they can change other marketing mix