Demand restrictions in price‐based decisions: managers versus consumers

Abstract

Purpose

The aim of this study was to evaluate the role of qualitative demand factors in companies' pricing decisions.

Design/methodology/approach

An empirical study was carried out, interviewing price managers in a selection of 74 companies from Andalusia (Spain).

Findings

It has been observed that qualitative aspects play a secondary role in pricing decisions. There are two main reasons: quantitative information is easier to obtain, use and interpret than qualitative information; and most companies, and in particular smaller ones, have no budget available for qualitative market studies.

Research limitations/implications

The empirical research is based on a sample of companies in the food sector. This opens several lines of future research: to diversify the areas of activity participating in the study; to include other company characteristics in the analysis; and to design operative methods for incorporating qualitative demand factors into pricing decisions.

Originality/value

The relevance of this study lies in the strong influence that can be exerted over consumers' purchasing decisions by qualitative aspects of demand.

Citation

María Rosa Díaz, I. (2006), "Demand restrictions in price‐based decisions: managers versus consumers", Journal of Product & Brand Management, Vol. 15 No. 3, pp. 214-224. https://doi.org/10.1108/10610420610668658