EFFECTS OF PRICE HAGGLING STRATEGY ON CONSUMERS’ DECISION MAKING IN SELECTED TRADITIONAL MARKETS IN IBADAN, OYO STATE
ABSTRACT
The consumers have varied influences that affect their buying decisions and among these are the pricing tactics and strategies of the marketing firm. Most consumers are utility maximizes; many of them always look for value-to-cost when they make buying decision. In some situations, consumers extensively involve in haggling in order to justify economic value to their purchase. The traditional open native/localmarket structure which differs from the conventional markets, departmental stores, etc. encourages haggling in all traditional market settings in Africa and Nigeria in particular. Haggling is a common feature in these markets as consumers use it to assert their rights to bargain and participate fully in the selling process. Haggling usually occurs in markets and major open markets especially in consumer buying situations where core-value purchases are involved, even “Ogi or Akamu” which is not high value purchase also attract haggling. This determines the final price agreed between the parties and the nature of the offer package that will be provided for that price. Price haggling is concerned with communication processes that take place between the two parties to arrive at a mutually acceptable bargain. Most consumers widely articulated that when making purchases in open markets, the haggling price arrived at may determine their repeat purchases and selected retail traders in the subsequent purchases. Furthermore, in recent times, it has not been ascertained whether the issue of price haggling or negotiation is suitably effective for our marketing system. Thus, this study evaluated the effects of price haggling as a strategy for consumer buying at selected traditional markets in Ibadan. This study sought to: (i) assess the effects of price haggling on consumers’ decision making, (ii) determine the effects of price haggprling on consumers’ repeat patronage, (iii) ascertain the effects of price haggling on open market system and (iv) examine the effects of price haggling and negotiation on consumer/seller relationship.The descriptive and survey design were used. The population of the study was 1276 registered traders from the five (5) major traditional markets in Ibadan, Oyo State, Nigeria. The sample of 305 was selected using the Taro Yamane formula. Convenience sampling technique was used to select the respondents from each of the selected markets. Data was collected using the questionnaire research instrument. A pilot study was conducted and responses tested with Cronabch’s Alpha, giving a coefficient of 0.81, indicating the reliability of the instrument. Validity of instruments was measured using content validity. Both descriptive and inferential statistics were used in data analysis. The statistical tools used in the study were the Ordinary Least Square (OLS) linear regression and Kolmogorov-Smirnov Z-test Statistics. These were done with the aid of the Statistical Package for Social Sciences (SPSS 17.0) software. The study revealed that price haggling has a significant effect on consumers’ buying decision making, is significantly effective on consumers’ repeat patronage, has positive effects on open market operation and has significant effects on consumer/seller relationship. It was recommended that improvement should be made on the haggling process that will ensure trust, fairness and justified price for product purchase, and Sellers should set retail price range which has a minimum and maximum price of goods, thereby creating a situation where no party in the haggling process is or feels cheated.