Does size matter? Analyzing the impact of pricing strategies on brand image and purchase intention of hedonic products

Abstract

The persistent inflation in Germany in the years 2022 and 2023 and its effects on prices in retail were the source of ideas for this dissertation. In addition to the various pricing strategies that are used in retail practice, this thesis focuses on the pricing strategies of Package Downsize (PD) and Price Increase (PI). Both strategies were investigated with different price levels for the hedonic product chocolate. For this purpose, an online survey was set up. Each participant saw only one stimulus. A total of five different scenarios were surveyed (control group, PI 10%, PI 20%, PD 10%, and PD 20%). The relationships between pricing strategies and purchase intention were examined more closely under the mediation effect of brand image. Consumer's attitude toward product and price was selected as a moderator. The results show a full mediation effect through brand image. A direct effect of pricing strategies on purchase intention cannot be proven. The moderation effect through consumer's attitude did not lead to any significant result. It can be concluded from the results that pricing strategies tend to have a negative effect on purchase intention.

Date of Award	3 Jul 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Paulo Romeiro (Supervisor)