Impacts of Competitive Price Reduction Policy on Consumer’s Trust in the Supermarket Industry

Author:Mohammed Saiful Islama, Md. Zahir Uddin Arifb*

Abstract:
Purpose- The leading purpose of this study is to examine in what way competitive price reduction policy influences purchasers’ trust in the supermarket industry of Bangladesh. Discounts, price cuts, and the promotional wars among retail supermarkets especially in Bangladesh are very competitive and these supermarkets maintain low product prices in order to get maximum market share. The low-priced product makes customers confused about their desired product qualities. Methodology- Descriptive research design has been used to conduct the study. The target population is shoppers aged 18 years old and over including both males and females. The sample size for the study was 200 shoppers selected through a non-probability sampling technique based on convenience sampling. A self-completed questionnaire has been used and a necessary pilot study has been done. Shop at supermarkets for a variety of reasons, including price, quality, availability, and location. Cross tabulation, frequency distribution, and the Chi-square test for hypothesis testing have all been used in the statistical study. Results- The degrees of freedom (df) are 2, the probability value (P) is 0.000, and the Chi-square value is 66.064. The alternative hypothesis, that price cuts have an adverse impact on product quality and consumer trust, is supported by the test of hypothesis. The result of the study showed that price reductions have an impact on product quality, which in turn affects consumer trust. The literature review also validated the trust factors in supermarkets concerning relationship marketing. Originality/Value- The study will be valuable for retail marketers, particularly for supermarket owners, managers, executives, salespeople, and customers, in developing their pricing strategies. As a result, the problem definition and research goals can be supported in that the price reductions have an impact on Bangladeshi consumers' trust in supermarkets, which is a key element in developing a lasting relationship with customers.

Keywords:Key Words: Consumer trust, Pricing Strategies, Relationship Marketing, Supermarket.

DOI:10.46333/ijtc/11/2/2

International Journal of Trade & Commerce (Vol: 11 Issue:2)