Impact of price promotion activities on customers purchasing deсisions on the Russian juice market

<p>The purpose of the study is to determine the influence of price promotions on the other situational factors which affect the process of purchasing decision.</p><p>The object of this study is the Russian juice market. The subject of this study is price promotion of juice brands.</p><p>The objectives of the research dissertation are:</p><p style="margin-left:35.4pt;">1) Analysis of the basic theoretical concepts of price promotions;</p><p style="margin-left:35.4pt;">2) Analysis of the types of factors which influence purchasing decisions;</p><p style="margin-left:35.4pt;">3) Determination of situational factors which influence the choice of the consumer categories juices;</p><p style="margin-left:35.4pt;">4) Development and implementation of questionnaires to identify the importance of factors and the level of influence factor of promotional prices on other factors;</p><p style="margin-left:35.4pt;">5) Determination of the factors importance and promotional price influence;</p><p style="margin-left:35.4pt;">6) Recommendations for companies how to use factors affecting consumer behavior.</p><p>Hypotheses of research dissertation are:</p><p style="margin-left:35.4pt;">1. Discounts - one of the most important situational factors that affect the behavior of consumers when buying</p><p style="margin-left:35.4pt;">2. Situational factors of the physical environment are some of the most important factors but lose its significance during price promotions</p><p style="margin-left:35.4pt;">3. Situational factors of the social environment are the least important factors and reduce the level of significance during price promotions</p><p style="margin-left:35.4pt;">4. Temporary factors - one of the least important factors and increase its importance in the period of price promotions</p><p style="margin-left:35.4pt;">5. Factors of preceding state are the most important factors and reduce the level of significance during price promotions</p><p style="margin-left:35.4pt;">6. Factors of information flow are one of the most important factors and reduce the level of significance during price promotions</p><p>For the preparation of quantitative research and drafting expanded list of situational factors for the questionnaire it was conducted in-depth interviews. On the basis of the questionnaire it was generated questions that will help to prove or disprove hypotheses.</p><p>After the implementation of the questionnaire and the analysis of respondents it was noted several limitations of work (number of respondents, qualitative characteristics of the sample, geography studies, the inability to obtain situational and personal characteristics, and others).</p><p>After processing information the importance of the price factor profiles proved by the respondents&#39; answers. It should also be noted the high price elasticity of demand on this market (-2.5). It is proof that the company can benefit from price promotions in relation to its products.</p><p>The remaining hypotheses were tested during processing ratings of situational factors without promo price and with promotional pricing. &nbsp;In order to provide recommendations company factors were grouped using cluster model, which has allocated 4 zones.</p><p>Part 1: The risk zone: Important parameters at regular price - lose their importance during price promotions.</p><p>Part 2: The zone of stability: the parameters that have high importance at regular price - lose significance during price promotions</p><p>Part 3: Plateau Area: Average level of importance of factors to promotional discounts and medium / low response to price promo.</p><p>Part 4: Zone of the Lurking Threat: Medium level of factors importance to promotional discounts. These factors increase its importance during price promotions.</p><p>For each of zones advices have been given to use factors in accordance with its characteristics and specificity.</p><p>For getting broader conclusions it is necessary not only to expand the sample and conduct various types of research, but also to analyze specific cases which were on the market.</p>