THE EFFECT OF PRICE AND PROMOTION ON LITTLE SNAPS’ CONSUMER BUYING DECISIONS

Abstract

The title of this research is “The Effect of Price and Promotion on Little Snaps’ Consumer Buying Decision”. The purpose of making this paper is to determine the effect of price and promotion on Little Snaps’ consumer buying decision. It helps the company to understand what customer Little Snaps’ perceived price value, and also to increase more sales by developing the right method of promotion based on the result of this literature. Little Snaps is a baby photography business that is experiencing a decrease in demand in the market and found problems in perceived price value and promotion channels. The population is saturated sample which consists of 34 people, which are Little Snaps’ existing customers. Gathering data method is done by spreading questionnaires to respondents targeted for the survey. The dependent variable is consumer buying decision, measuring the five stages of buying process, using 4 indicators which are problem recognition, searching, choice and outcomes. The independent variables are price and promotion, measuring factors that become consumer’s references for price, and marketing communication mix for promotion. The indicators chosen for price are affordability, the quality and quantity of product, and competitiveness, while the indicators chosen for promotions are advertising, sales promotion, direct and interactive marketing, word-of-mouth, and personal selling. The analysis tools are classic assumption test, F-test, t-test, multiple linear regression, coefficient correlation, and coefficient determination. The result of this research can be concluded that price and promotion significantly affect consumer buying decision, each partially; even though price in the multiple linear regressions got bigger value than promotion, they both have major affects on consumer buying decision