| Abstract: | This study investigated the influence of pricing strategies on consumer purchase decisions in
major supermarkets in Addis Ababa, Ethiopia. The research specifically examines four pricing
strategies: discount pricing, bundle pricing, psychological pricing, and competitive pricing. The
objective is to provide supermarket managers with insights that will help them develop effective
marketing strategies, business models, and pricing approaches to enhance customer satisfaction
and sales performance. An explanatory research design was employed, utilizing convenience
sampling to select 370 respondents. Data were collected through a structured questionnaire, and
multiple regression analysis was used to explore the relationship between the pricing strategies
and consumer purchase decisions. The regression analysis revealed a significant relationship,
with an R-squared value of 0.562, meaning that 56.2% of the variance in consumer purchase
decisions can be explained by the four pricing strategies. The findings showed that discount
pricing had the strongest positive effect on consumer purchase decisions (B = 0.291, p < 0.001),
followed by psychological pricing (B = 0.275, p < 0.001). Bundle pricing (B = 0.262, p < 0.001)
and competitive pricing (B = 0.176, p < 0.001) also significantly influenced consumer behavior.
These results underscore the importance of implementing a mix of pricing strategies to engage
consumers effectively and increase sales. The study concludes that supermarkets can enhance
their competitiveness and customer loyalty by strategically adopting these pricing strategies. Key
recommendations for supermarket managers include prioritizing discount pricing, leveraging
psychological and bundle pricing techniques, and ensuring competitive pricing in relation to
market conditions. This research contributes valuable insights into the impact of pricing
strategies on consumer behavior, particularly in a developing market context like Ethiopia |
