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Abstract

In this study, we aimed to investigate how comparative pricing strategies influence purchase satisfaction and intent to purchase among UBC students. We conducted a between subjects design to explore how providing a reference price alongside the at-cost price of an item affects consumers’ purchase intent and satisfaction of purchase. We anticipated that consumer purchase intent and satisfaction would increase when consumers were provided with a reference price compared to when only the at-cost price is presented. Using a Qualtrics survey, participants (N=135) were randomly assigned to one of two conditions. In the control condition, they were presented with six food items with only the at-cost price, and in the experimental condition, participants were presented with the same items with both the at-cost price and reference price. In both conditions, we examined our data using a satisfaction Likert scale and a dichotomous Yes or No questionnaire on purchase intention. Our results indicated a statistically significant increase in purchase satisfaction and intent when consumers were presented with both the at-cost price and reference price of food items. The results supported our notion that using comparative pricing strategies can improve consumer purchase satisfaction and purchase intent in an at-cost context. Disclaimer: “UBC SEEDS provides students with the opportunity to share the findings of their studies, as well as their opinions, conclusions and recommendations with the UBC community. The reader should bear in mind that this is a student project/report and is not an official document of UBC. Furthermore readers should bear in mind that these reports may not reflect the current status of activities at UBC. We urge you to contact the research persons mentioned in a report or the SEEDS Coordinator about the current status of the subject matter of a project/report.”