ATENEO DE DAVAO UNIVERSITY

SCHOOL OF BUSINESS AND GOVERNANCE UNDERGRADUATE PROGRAMS

A Study on the Influence of Pricing Strategies in Branded Footwear Industry in

stimulating Impulsive Buying Behavior of Online Shoppers within Davao City

A Concept Paper Submitted to the Faculty of the Undergraduate Business and Governance
Programs in Partial Fulfillment of the Requirements for Business Research

Proponents:
Gatab, Kyle Andre L.
Gumaua, Harel Myles
Macapagal, John Carlo L.
Mondreza, Andy Louise

Submitted to:
Mrs. Rodilina B. Marte, DBA

Date:
September 12, 2019
BRIEF BACKGROUND

Impulse buying is an inevitable part of our everyday lives, this is also an act of unplanned
buying purchase decision that is supported by a certain stimuli either internal or external. Decision
making is an imperative action that human beings need to do every day. There are many several
factors that affects impulsive buying behavior. Impulsive buying is the tendency of a customer to
buy goods and services without planning in advance (Bennett, 2019). When a customer takes such
buying decisions at the spur of the moment, it is usually triggered either by their emotions, sex,
age and allowance. Hence, discounts increase the tendency of consumers to buy impulsively
(Ünsalan, 2016).
Online Shopping have been available to consumers for over decades already. It is getting
more popular as the years pass by due to innovation. As electronic commerce emerge, there are
known pricing strategies that stimulate the impulsive buying behavior of the shoppers. Impulsive
buying is the decision made by the buyer that is not planned, these marketers utilize these impulses
among consumers in order for them to increase sales (Balakumar & Mishra, 2017). It apprehends
that impulse buying has now become a usual behavior among the shoppers. Customers are now
prone to purchases that they have not planned ahead of time and mostly, they buy just to satisfy
themselves. Moreover, impulsive buying stops a person from progressing better financial habits in
the long run. This destroys the decision process to be made by the buyer, specifically, the five-
stage model of the buying decision process.

OBJECTIVES OF THE STUDY

This study aims to identify the different pricing strategies that stimulate online consumer
the urge to purchase branded footwear spontaneously. The results and findings will be beneficial
to both online shoppers and online retailers as well. On the part of the consumers, they will raise
awareness on their tendencies that stimulates impulse online buying behavior. This can improve
their habits on online shopping to avoid a purchase on unnecessary things, this will also help them
to save money. On the contrary, online businesses can focus its marketing and sales efforts in
targeting different strategies that entice or attract more online shoppers.
SIGNIFICANCE OF THE STUDY
Online Shoppers. The result of this study will provide online shoppers the knowledge on
which pricing strategies induce their impulsive buying tendencies. It can make them pay more
attention to their buying habits and it will allow them to make careful purchases with their specific
needs.

Online Retailers. This study will enterprise and will aid online retailers and future online
retailers identify pricing strategies to induce impulsive buying from their online customers. With
this, it will help them decide on what is the best price that would suit their online products initiating
the impulse buying behavior of online consumers. Thus, resulting his to an increase in profit.

Aspiring Online Entrepreneurs. This study will help the aspiring online entrepreneurs or
retailers know the different techniques and styles on how to attract and reach impulsive online
buyers specifically in the branded footwear industry. Furthermore, this study will help them reach
a bigger market and gain more impulsive online customers by knowing the different kinds of
pricing strategies.

Ateneo Shoe Academy. The result of this study will help the academy raise awareness about
impulsive online buying behavior in terms of choosing branded footwear. Also, this study will
help the academy and the community to realize the cause and effect of impulsive online buying,
the pricing strategies and behavior of online shoppers in terms of choosing branded footwear
online.

Future Researchers. The results and information that will be gathered in this research can
be used as a reference to the future researchers about impulsive online buyers. This could be a
guide to minimize errors that will help them conduct more effective and most importantly, efficient
research. This can serve as a foundation for more specific extensive research.
Conceptual Framework

This quantitative study's conceptual framework utilizes the correlational relationship

between the Impulsive Online Buying Behavior and the 5 Pricing Strategies, namely: Discount
Pricing, Price Skimming, Psychological Pricing, Price Bundling, and Price Penetration. This
framework aims to determine whether there is a significant relationship between the independent
variable and the dependent variable. Furthermore, the moderating variable which are: age, sex and
allowance affects the relationship between the independent and dependent variables. These
modifies the correlational of the two variables by increasing, decreasing or reversing it.
METHODOLOGY
Research design
This study is a quantitative research following a correlational design. It aims to describe and
measure the degree of association between the variables. Specifically the independent and
dependent variables, for which in this research are the five chosen strategies, namely: Discount
Pricing, Price Penetration and the moderating variables which are: age, sex and allowance of the
future respondents. Moreover, this is under the prediction research design that seeks and identifies
the factors that would boost the manifestation of the online consumers’ urge to purchase branded
footwear from the online industry.

The Sample
The researchers will identify the population of the study at a total of 250 respondents. The
respondents are enrolled in a private school within the city namely, Malayan Colleges Mindanao,
Assumption College of Davao, University of the Immaculate Conception, San Pedro College, and
Philippines Women’s College. Each university will contribute 50 students who are into shopping
different styles of branded footwear online.

Research Instrument
In obtaining data, the researchers will opt to use an online survey questionnaire adapted
from a study conducted in Ateneo de Davao University on the Pricing Strategies that stimulate the
impulsive buying behavior of grade 12 Accountancy, Business and Management learners of the
said school (Bedaño, Gallentes, Luang et. al., 2018). The items in the questionnaire were written
in a manner at which the impulse buying behavior of the consumers and the pricing strategies that
could manifest the urge to purchase branded footwear may be identified and to see the moderating
variables modifies the correlational of the two variables.
The survey questionnaire will be consisted of different sections addressing the research
question study. The first section will be allotted for identifying the demographics of the future
respondents. Questions regarding impulsive buying behavior will follow which is to identify
whether the respondents exhibits impulse buying behavior. The survey will also contain questions
using Likert Scale intended for determining the significant correlational relationship between the
pricing strategies and respondent’s impulse buying behavior and the moderating variables modifies
the correlational of the two variables by increasing or decreasing it.

Data Collection Procedure

First, the researchers will research on previous studies related to the topic. The collected
information from the research will be used as the foundation for the study. Second, the researchers
will select respondents from private schools, namely: Malayan Colleges Mindanao, Assumption
College of Davao, University of Immaculate Conception, San Pedro College, and Philippines
Women’s College. Each university will contribute 50 students who are into buying branded
footwear through online shopping from ages 18-21 years old. Third, impulse buyers will be
identified from the selected respondents through the survey questionnaires that will be given to
them. The questionnaire adapted from Bedaño, Gallentes, Luang et. al., (2018) will be used to
identify whether the respondents exhibits impulse buying behavior, from the five different pricing
strategies influences these impulses and whether the moderating variables such as age, sex and
allowance affects the relationship between the independent and dependent variables.

Data Analysis procedure

This research study will be having 250 participants that will help determine the results of
online shoppers exhibiting impulse buying behavior in terms of branded footwear. The main goal
of the study will find whether or not certain price strategies had an effect to prompt impulse buying
behavior of online shoppers and whether the moderating variables such as age, sex and their
allowance modifies the correlational of the two variables by increasing or decreasing it. Moreover,
this will be interpreted using a statistical method which is Multiple Regression Analysis to analyze
the dataset in which there are variables that will determine outcomes. The outcomes will be
measured with ordinal variables since Likert Scale will be used in the survey questionnaire.
References:

Balakumar, U., Mishra, R. (2017). A Study on “Impulsive Buying behaviour of Customers on

Apparels” in Bangalore. Retrieved from
http://www.ijetmas.com/admin/resources/project/paper/f201707181500398753.pdf

Bedaño, M., Frias, C.J., Gallentes, H.S., Luang, K., Magallano, A.J., Rosal, C., Santos, L.G.
(2018, February). Pricing Strategies that stimulate impulsive buying behavior of Ateneo
de Davao Senior High School grade 12 ABM learners. Practical Research Cluster of the
Contextualized Subject.

Bennett, C. (2019). Definition of 'Impulsive Buying'. Retrieved from

https://economictimes.indiatimes.com/definition/impulsive-buying

Ünsalan, M. (2016). Stimulating Factors of Impulse Buying Behavior: A Literature Review. Gazi
Üniversitesi İktisadi ve İdari Bilimler Fakültesi (GÜİİBF) Dergisi. 18. 572.