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

Authors: Asad Javed; Muhammad Yasir; Faisal Sajjad

Addresses: Department of Management Sciences, Hazara University, Mansehra, Pakistan ' Department of Management Sciences, Hazara University, Mansehra, Pakistan ' Department of Management Sciences, Hazara University, Mansehra, Pakistan

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.

Keywords: fixed price; negotiable price; demographic variables; Pakistan.

DOI: 10.1504/IJSOM.2018.094182

International Journal of Services and Operations Management, 2018 Vol.31 No.1, pp.40 - 52

Received: 27 Jun 2016
Accepted: 12 Nov 2016
Published online: 22 Aug 2018 *

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