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Fixed vs. negotiable price; who wins the market: an evidence from Pakistan

Author

Listed:
  • Asad Javed
  • Muhammad Yasir
  • Faisal Sajjad

Abstract

There are different ways products are priced. Prices of some products are fixed and some are negotiable. This paper compares the effect of fixed pricing and negotiable pricing on purchase decision. The paper also compares the effect of different demographic variables on fixed and negotiable price. The results of our empirical study, conducted on locally manufactured apparels, reveal that people evaluate fixed prices more favourably as compared to negotiable price. Furthermore, it was found that demographic variables affect negotiable price, and people with different levels of education and income had differences of opinion in evaluating negotiable price. However, the majority of respondents were in favour of non-negotiable/fixed price. Hence, it could be concluded from the results that if organisations shift from negotiable price to fixed price, the inclination of customers towards their products increases. The sellers of locally manufactured apparels in particular and fast moving consumer goods in general can significantly improve their sales volume by shifting to non-negotiable/fixed price policy.

Suggested Citation

  • Asad Javed & Muhammad Yasir & Faisal Sajjad, 2018. "Fixed vs. negotiable price; who wins the market: an evidence from Pakistan," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 31(1), pages 40-52.
    • Handle: RePEc:ids:ijsoma:v:31:y:2018:i:1:p:40-52
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