THE IMPACT OF DIFFERENT PRICING STRATEGIES TO THE DECISION

MAKING IN TERMS OF BUYING A PRODUCT OF THE GRADE 12 ABM

STUDENTS IN SAN JOSE LITEX SENIOR HIGH SCHOOL

A Research Proposal Presented to the ABM Faculty of

SAN JOSE LITEX SENIOR HIGH SCHOOL
Rodriguez, Rizal

In partial fulfillment of the requirements for Practical Research 2

ABALLA, ARIANNE L.

BERIÑA, MARK ANGELO A.

EVANGELISTA, ERICA MAY A.

MEDINA, SARAH MAE M.

MEDINA, IOANESS PAUL WEM M.

MIRANDA, ALIYAH KATE M.

TANGGOTE, ASHLINY A.

URBANO, ROMALYN J.

RESEARCHERS – ABM TRADING

ROSARIO ROXANNE P. RADA

Research Adviser

First Semester
SY 2023 – 2024
 ii

ACKNOWLEDGEMENT

First and foremost, we would like to express our sincerest gratitude to

the Almighty God for His unfailing grace, guidance, and protection throughout

this research project. We would also want to thank Mrs. Rosario Roxanne P.

Rada, our Practical Research 2 adviser, for her assistance, support, and

encouragement during the entire process. Her guidance and knowledge were

vital in guiding the path of our study and bringing our ideas to fruition.

We would also like to extend our deep appreciation to Mr. David-Ben

Jesse P. Morta in our study who kindly shared his time, experiences, and ideas

with us. His willingness to participate in our research was crucial to the project's

success, and we appreciate him for his support.

Finally, this research endeavor would not have been possible without the

help of Montalban E-Library at Brgy. Balite, 3rd Floor, Dialysis Center Building,

RHU Compound and participation of many people including our parents for their

attention and support during the research study. As well as their encouragement

during all of the restless nights spent making the research study. We, the

researchers, would like to extend our thanks to everyone who helped make this

research happen, and we hope that our findings will make an important

contribution to the field.

 iii

DEDICATION

This research is dedicated to our parents, who have always supported

us financially, emotionally, spiritually, and morally. They have also served as our

inspiration, mentors, and sources of strength when we felt like giving up.

To our friends, who stood by us and assisted us with all of our problems.

They exhort us to do this crucial research on schedule. They consistently

provide us inspirational messages as well.

To our teacher who encouraged us to complete this research on time,

helped us refine our research, and inspired us with their own moving tales of

having gone through similar experiences themselves.

Finally, we dedicated this study to Almighty God who protects,

strengthens, and gives us mental strength.

The Researchers
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TABLES OF CONTENTS

Title Page .....................................................................................................i

Acknowledgement ......................................................................................ii
Dedication ………………………………………………………………………..iii
Table of Contents ……………………………………………………………….iv

Chapter 1 THE PROBLEM AND ITS BACKGROUND

Background of the Study ...………………………………………1

Statement of the Problem …………...………...………….……..2
Research Hypothesis ……………………………...………….….3
Theoretical Framework ………………………………………......3
Conceptual Framework …………………………………………..4
Scope and Limitation ……………………………………………..5
Significance of the Study ………………………………………...5
Definition of Terms ………………………………………………..6

Chapter 2 REVIEW OF RELATED LITERATURES AND STUDIES

Related Literature
Foreign …………………………………………………….8
Local ……………………………………………………….9
Related Studies
Foreign …………………………………………………….11
Local ……………………………………………………….12

Chapter 3 RESEARCH METHODOLOGY

Research Design …………………………………………………16

Population, Sample, and Sampling Technique ………………..17
Research Instrument ……………………………………………..18
Data Collection Procedures ………………………………...…...19
Statistical Treatment …………………………………………...…20

Appendices:
Research Questionnaire …………………………………...……..24
References/Bibliography ………………………………………….26
 1

CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

This chapter presents the introduction, statement of the problem, research

hypothesis, theoretical framework, conceptual framework, scope and

delimitation, the significance of the study, and the definition of terms.

Background of the study

As future business professionals, Grade 12 ABM students are aware of

the idea of value for money. Simultaneously, students may have different

perceptions of managing their daily allowances and expenses. So, as young

consumers, they are consistently evaluating the prices of every product that

meets their needs or budget before making a decision. Despite financial

concerns, Generation Z students are confident in their financial skills, with 30%

not worried about their future, 63% comfortable with budgeting and credit card

management, and 44% feeling prepared to make financial decisions, compared

to 23%. In particular, young consumers are the focus of this study as they have

various needs and financial limitations, making it important to figure out how

pricing strategies affect their purchasing decisions (Bryant, J., 2022). As stated

by Secretaria, N., et al. (2023), pricing strategies has a significant impact on

Generation Z consumers’ purchasing decisions. The study aims to determine

on how different pricing strategies impact their purchasing decisions by

analyzing the responses and buying behaviors of the Grade 12 ABM students.
 2

Statement of the Problem

This research study aims to determine the Impact Of Different Pricing

Strategies To The Decision Making In Terms Of Buying A Product Of The Grade

12 ABM Students In San Jose Litex Senior High School. The research

questions guiding this study were:

1. What is the profile of the respondents?

1.1 Age

1.2 Gender

1.3 Allowances

2. What are the different pricing strategies that influence the purchase

decisions of Grade 12 ABM students? What is the impact of different pricing

strategies to the decision making of grade 12 ABM students in San Jose Litex

Senior High School in terms of buying a product?

2.1 Cost-plus Pricing

2.2 Value-based Pricing

2.3 Bundle Pricing

2.4 Price Skimming

2.5 Psychological Pricing

3. Is there any significant relationship between different pricing strategies

to the decision making of Grade 12 ABM students in terms of buying products?

 3

Research Hypothesis

There is no significant relationship between different pricing strategies to

the decision making of Grade 12 ABM students in terms of buying products.

Theoretical Framework

Theory of Buyer Behavior by Howard, J. and Sheth, J. (1969) is a

framework that explains consumer decision-making processes. It is relevant to

studying the impact of different pricing strategies on Grade 12 ABM students at

San Jose Litex Senior High School. The theory emphasizes the multi-stage

process of problem recognition, information search, evaluating alternatives,

purchase decision, and post-purchase evaluation. It recognizes the role of

psychological factors, culture, social groups, family, and marketing

communications on consumer decisions. By applying the theory to this study,

researchers can create a structured framework to investigate and analyze the

various stages, cognitive processes, and external factors that influence student

consumers. This framework will provide valuable insights into this specific

consumer group's behavior.

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Conceptual Framework

INDEPENDENT VARIABLE DEPENDENT VARIABLE

Different Pricing Strategies

Cost-plus Pricing
Decision Making In Terms Of
Value-based Pricing Buying Of A Product Of The
Grade 12 ABM Students At
Bundle Pricing San Jose Litex Senior High
School
Price Skimming

Psychological Pricing

The conceptual framework shows the Independent Variable - Dependent

Variable (IDV-DV) of the study. The independent variable is the different pricing

strategies, which are manipulated by researchers to determine their impact.

The dependent variable is decision making in terms of buying of a product of

the Grade 12 ABM Students at San Jose Litex Senior High School, which is

how the students make choices when it comes to purchasing products. The

study anticipates that pricing strategies will have a noticeable effect on how

students make decisions when buying. The conceptual framework helps

researchers organize their thoughts and plan their study for investigating the

relationship between variables. The hypothesis is that there is no significant

relationship or impact between pricing strategies and young consumers, but the

study aims to measure its influence.

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Scope and Limitations

In the academic year 2023–2024, this study only focused on ABM

students in Grade 12 at San Jose Litex Senior High School. The main purpose

of this study is to determine the impact of different pricing strategies to the

purchasing decisions of the young consumers. Identifying motivation,

perception, attitudes, beliefs, and lifestyle is crucial for investigating consumer

behavior.

Significance of the Study

This part of the research contains the beneficiaries of the research.

To Entrepreneurs/Business Owners. The findings of this research will be

beneficial to the entrepreneurs or business owners to enrich their knowledge

and understanding regarding to the various pricing strategies that consumers'

prefer.

To Consumers. This study will help them to choose and understand the variety

of pricing strategies that will be sufficient for their preferences.

To Students. The results of this research will help them to broaden their

knowledge in terms of buying.

To Future Researchers. This study will serve as reference for future

researchers on the subject of research, specifically studying about different

pricing strategies and decision making in terms of buying a product. This will
 6

serve as guide to further develop the research with the connection to the

variables used.

Definition of Terms

For better understanding, the following terms are defined operationally

and conceptually:

Price - An amount of cash, or its equivalent, for which anything is being traded

offered for sale, purchased, or otherwise transacted. In this study, it is the value

that customers are prepared to pay for a product. In this study,

Pricing Strategies - The methods and procedures employed by businesses to

set the prices they charge for their goods and services. In this study, these are

the methods of setting the prices of businesses that may affect the purchasing

decisions of consumers.

Decision Making - The method of choosing by identifying the issue, learning

about potential solutions, and selecting the best one. In this study, it is the

process of selecting a product based on the consumers’ preferences.

Buying - is an act of acquiring a thing. In this study, it is a process that a

customer undergoes to decide whether to buy a product or service.

Young Consumers – Young Consumers: This age category includes people

between the ages of 18 and 24 who are not yet fully mature consumers. They
 7

are the young individual in this study who first encounters the market, money,

and marketing influences.

Product - Refers to anything offered by a firm to provide customer satisfaction,

tangible or intangible. In this study, it is a goods, services and ideas that can be

offered in a market to satisfy young consumer needs and wants.

Cost-Plus Pricing - Also known as mark-up pricing strategy is the combination

of a total production costs of a product plus the “markup” or the amount added

to the base price to cover overhead and profit.

Price Skimming - This strategy, this lets the businesses set high prices for a

new product then lowering it over time as the product loses its popularity.

Value-Based Pricing - It’s about businesses setting prices based on the

perceived value of the item instead of its actual cost.

Bundle Pricing - This pricing strategy means selling complementary products

together for a rate lower than their individual prices.

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CHAPTER 2

REVIEW OF RELATED LITERATURES AND STUDIES

This chapter the ideas, finished thesis, generalization, or conclusions,

methodologies, and others. Those that were included in this chapter helps in

familiarizing information that are relevant and similar to the present study.

Foreign Literature

Levrini, G., & Santos, M. J. D. (2021) study demonstrated that the

primary factor influencing their intention to buy was the price variable. It

measured the reactions of consumers to price and the other variable using

facial electromyography (EMG) and eye-tracker devices, allowing them to

compare the unconscious and cognitive responses. Furthermore, the price of a

product, influenced by exchange rates, is crucial for a company to achieve

business goals and profit, considering various factors and the best strategy to

pique consumer interest. As stated by Cakranegara, P. A. et al., “The price of a

company's product or service has a positive effect on consumer purchasing

interest, so it is closely related to consumer purchasing power.” (2022)

In the study of Ali, B. J., & Anwar, G. (2021), it is revealed that Penetration

Pricing Price Skimming marketing sharing sites blog platforms and Competitive

Pricing all had a significant positive influence on consumer behavior at a 5% level

of significance. Additionally all beta values were found to be higher than .001

indicating a strong relationship between the independent variables and consumer

behavior. However, according to the findings of Fachmi, M., et al., (2021) study,

odd and discount pricing had the strongest relationships with consumer
 9

purchase decisions. The study also proposes employing dynamic pricing and

numerous types of discounts in order to draw in customers.

According to Hamilton-Ibama, E. O., & Owuso, S. M. (2022), pricing

strategy and customer loyalty are strongly correlated, with customer loyalty

being one of the outcomes of consumer decision-making. Proposing that

companies that manufacture food and beverages consider effective pricing

strategies with the intention to reduce costs and strengthen loyalty from

customers, with a particular focus on perceived value-based price components.

Synthesis

Altogether, the foreign related literatures, which involves strategies like

penetration pricing, price skimming, competitive pricing, odd pricing, discount

pricing, and dynamic pricing, highlights the complex and varied effects of pricing

on consumer behavior. It highlights how crucial it is for businesses to approach

pricing strategically and to see it as an essential component of their overall

business plan. Effective pricing strategies desire toward accomplishing

business goals, enhance consumer interest, and boost customer loyalty. The

study supports a careful, multifaceted approach to pricing that takes with regard

a variety of strategies and variables.

Local Literature

According to the study of Dulay, F. A., et al (2022), when it comes to

buying, Filipino consumers give the highest priority to product-related details

and one of those is price. The results may contribute to better product
 10

placement and information accessibility on these platforms, empowering

customers to make well-informed decisions about what to buy. Moreover, Quick

Service Restaurants (QSRs) face stiff competition and must market their

products through creative pricing strategies. Abatayo, S. N. C., et al. (2022)

found that affordability, value for money, and appeal are the most important

factors influencing customer decisions. The most preferred pricing strategies

were product line, bundle, psychological, and premium pricing.

On the other hand, in the study of Cornell, D. A. et al (2020), the findings

from the survey, discovered that a variety of factors influence the food choices

of millennials. Sometimes they follow the group's decision about what to eat,

and other times they don't. Depending on who they are with, how much money

and time they have, and how they behave in the group, millennials' ordering

behavior and judgment are various. These variables have a significant effect

on ordering. It may restrict them or enhance the variety of decisions that are

accessible for them.

Synthesis

Dulay et al.'s research on Filipino consumer behavior, Abatayo et al.'s

investigation into QSR pricing strategies, and Cornell et al.'s study on

millennials' food choices provide a comprehensive understanding of consumer

decision-making. Dulay et al. emphasize the importance of product-related

details, particularly pricing, for Filipino consumers, while Abatayo et al. highlight

the challenges faced by QSRs, emphasizing creative pricing strategies. Cornell

et al. reveal the dynamic nature of millennials' food choices in group settings,
 11

influenced by factors like companionship, financial resources, and time

constraints. These studies emphasize that in order to develop effective

marketing and pricing strategies, one must have a thorough understanding of

cultural differences, competitive dynamics, and specialized markets.

Foreign Studies

As stated by Johan, F., et al (2023), the influence of price on customer

decisions extends to perceptions of value, price sensitivity, and quality.

Strategies like promotions, discounts, and price comparisons further shape

consumer behavior. Particularly weighing these factors will help businesses

create marketing campaigns and pricing strategies that will effectively draw in

and keep customers. Maintaining a balance between cost and perceived

value—while acknowledging financial limitations and income—can improve

overall customer satisfaction and competitiveness.

Rajan, R., & Oswal, K. (n.d.) study highlights the strong positive

relationship that exists between prices and consumer purchasing behavior,

emphasizing that reasonable prices encourage consumers to make purchases.

Consumer preferences are especially influenced by age, with consumers

between the ages of 15 and 30 placing a higher value on brand attraction than

price because they think that higher prices correspond to better products. On

the other hand, people over 30 place a higher value on product quality.

Supermarkets use various pricing strategies like lower prices, seasonal

discounts, and sales promotions to attract customers and boost profits.

 12

However, mixed-leader bundling strategies may limit high-end customers'

decision-making, necessitating a customized strategy for various consumer

groups to effectively appeal to their needs. (Mehta, A., 2021)

Synthesis

In summary, the studies highlights the profound impact of pricing on

consumer behavior. Johan et al. (2023) stress that price has a complex impact

that includes perceptions of value, sensitivity to price, and quality. They focus

on the importance of achieving a balance between perceived value and cost

while taking financial constraints into account, and they call for careful

consideration of these factors in the development of pricing strategies and

marketing campaigns. The study conducted by Rajan and Oswal (n.d.)

demonstrates that prices and consumer purchasing behavior are positively

correlated, with age being a significant influencing factor. Mehta's (2021)

investigation of supermarket pricing strategies provides further understandings,

highlighted the effectiveness of price reductions and discounts while cautioning

against strategies that might influence the purchasing decisions of wealthy

consumers. Overall, research highlights how crucial it is to have effective

pricing strategies that are based on variables like perceived value, age

demographics, and consumer preferences in order to generate interest of

clients.

Local Studies

According to Cervantes, B., et al. (2020) the findings of their study leads

them to the conclusion that the participants are unsure of how they behave
 13

when making purchases online. The researchers come to the conclusion that

students have extremely high standards for the products, are certain that online

purchasing allows for easy price comparison, and more. Students' purchase

behavior towards online shopping is therefore influenced by their shopping

orientations, perceived rewards, and domain-specific innovativeness.

Filipinos are drawn to product promos and affordable prices, with 40%

following brands on social media for discounts. Affordability is the key driver of

new product purchases, followed by convenience and personal

recommendation. Filipino shoppers prefer new products centered on

affordability, health, sustainability, and convenience. Promotions drive most

purchases, with 76% of respondents stating free gift offers make product offers

more attractive. Nielsen's 2012 Global Consumer Report highlights the

importance of practicality and creativity in developing countries.

In the study “Understanding Consumer Behaviour During The

Philippine’s Double-Day Sales”, retailers should plan their pricing strategies for

Double-Day Sales, focusing on setting discount levels and implementing

dynamic pricing. Understanding the impact of discounts and promotions can

maximize sales potential and encourage informed consumer decisions.

Double-day sales in the Philippines offer significant discounts and promotions,

influencing consumer behavior. With income growth and expected 5.5%

household spending growth, these sales drive a massive shopping surge. The

frequency of these sales adds excitement and excitement, shaping the retail

landscape. (2023)
 14

Synthesis

Cervantes et al.'s study on online purchasing behavior in the Philippines

reveals that students have high standards for products and believe in price

comparison online. Filipino consumers are attracted to product promos and

affordable prices, with 40% following brands on social media for discounts.

Affordability is a primary driver for new product purchases, followed by

convenience and personal recommendations. Promotions, particularly free gift

offers, significantly influence purchase decisions. The study suggests that

retailers should strategically plan pricing for Double-Day Sales events, focusing

on discount levels and dynamic pricing. The study anticipates a shopping surge

due to income growth and an expected 5.5% household spending increase.

Practicality and creativity remain relevant in developing countries like the

Philippines.

General Synthesis

The related literature and related studies highlights the importance of

pricing strategies in influencing consumer behavior, emphasizing the need for

a multifaceted approach that considers various strategies and variables. Key

studies, such as Dulay et al.'s research on Filipino consumer behavior, Abatayo

et al.'s investigation into Quick Service Restaurant pricing strategies, and

Cornell et al.'s study on millennials' food choices, provide a comprehensive

understanding of consumer decision-making. They emphasize the significance

of cultural differences, competitive dynamics, and specialized markets in

developing effective marketing and pricing strategies. The study also highlights

the complex interplay of perceived value, price sensitivity, and quality,

 15

emphasizing the need for a balance between perceived value and cost. The

study also highlights the importance of considering financial constraints in

pricing strategy development. The study also highlights the need for effective

pricing strategies based on perceived value, age demographics, and consumer

preferences to capture and retain client interest.

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CHAPTER 3

RESEARCH METHODOLOGY

This chapter will show the research methodology that was used in

conducting this study. The chapter presents the research design, population,

sample, and sampling techniques that were employed. It further identified the

research instruments, data collection/procedures, and statistical treatments.

Research Design

This study examines how various pricing tactics affect Grade 12 ABM

students at San Jose Litex Senior High School's decision-making process when

it comes to purchasing a product. This non-experimental study intends to

investigate the connection between pricing methods and decision-making. This

study is appropriate for the descriptive research methodology, which is a non-

experimental research approach that enables data collection without changing

or influencing any factors. In this instance, the researchers are observing the

pricing methods as they naturally evolve in the market rather than manipulating

or controlling them.

This study needs to determine the answer who (which is the Grade 12 ABM

Students) and what (are the impact of pricing strategies to their decision making

in terms of buying a product). The subject would be observed in a completely

natural and unchanged environment as the subjects will not influence each

other. Though descriptive research design has disadvantages of having no

possible way to be statistically analyzed, not replicable, and regarded as

unreliable and unscientific, this would be more accurate and suitable for this
 17

study of exploring the impact of different pricing strategies to the decision

making in terms of buying of the grade 12 ABM students in San Jose Litex

Senior High School.

Population, Sample, Sampling Technique

The Accountancy, Business, and Management (ABM) Grade 12 Senior

High School students will be the respondents of this study. The total population

of Grade 12 ABM students in San Jose Litex Senior High School is 457 (189

Male and 268 Female) from 8 sections. The researchers employed the Slovin's

formula to properly select the sample size and Simple Random sampling

method as the probability sampling technique for its samples. The computation

below shows how Slovin's Formula was used in getting the sample size of the

Grade 12 ABM students in San Jose Litex Senior High School:

𝑁
𝑛=
1 + 𝑁(𝑒)2

Where (n) is the sample size, (N) is the sample population and (e) is the

estimated margin of error that is equal to 0.05 level of significance or 5%.

Solution:

𝑁
𝑛=
1 + 𝑁(𝑒)2

457
𝑛=
1 + 457(0.05)2

457
𝑛=
1 + 457(0.0025)
 18

457
𝑛=
1 + 1.1425

457
𝑛=
2.1425

𝑛 = 213.30

8√213.30 = 𝟐𝟔. 𝟔𝟔𝟐𝟓 𝒐𝒓 𝟐𝟕

27 × 8 = 𝟐𝟏𝟔

Thus, 27 students per section are selected randomly using simple random

sampling method with a 5% margin of error with the total of 216 Sample size of

Grade 12 ABM students in San Jose-Litex Senior High School.

Research Instruments

In this study, survey questionnaire were the instrument used to ask the

ABM students in San Jose Litex Senior High School about the impact of

different pricing strategies on their decision making in terms of buying a product.

The survey questionnaire is designed in Likert Scale, a rating scale used to

measure opinions, attitudes, or behaviors on how different pricing strategies

impacts the decision making in terms of buying a product of the Grade 12 ABM

Students .Based on the statement of the problems of this study, the questions

for the survey questionnaire was developed. The questions for the survey

questionnaire was made in such a way that participants will be able to answer

it in a free manner.
 19

Data Gathering Procedure

In this study, the researchers recognize the importance of understanding

the scope of their study to effectively collect data. Therefore, a preliminary step

involves submitting a request letter to the school administration, seeking

approval and information about the total number of Grade 12 ABM students.

This step is crucial to define the boundaries of the research and ensure a

representative sample.

Upon obtaining approval and acquiring the necessary information, the

researchers will proceed with the survey process. The formulation of survey

questions will involve the use of a checklist and rating scale to gather

comprehensive responses from the participants. Before initiating the survey,

the researchers will seek final approval from the Practical Research 2 teacher,

confirming readiness to commence the data collection phase.

The chosen respondents, in this case, the Grade 12 ABM students, will

be approached with courtesy. The researchers will present the request letter to

seek permission for their participation in the survey. If consent is granted, the

researchers will provide the respondents with the survey questionnaire slip. The

survey will be conducted during the free time of the selected respondents to

ensure their convenience.

During the survey, respondents will be given sufficient time to

thoughtfully answer the questions on the questionnaire. Once completed, the

 20

researchers will express gratitude for the respondents' time, patience, and effort

in contributing to the study.

Following the data gathering phase, the researchers will carefully collect

the questionnaires for tallying. The collected data will undergo statistical

treatment as part of the rigorous analysis essential for the research's objectives

and conclusions.

Statistical Treatments

The data gathered from the survey questionnaire given to the Grade 12

ABM Students at San Jose Litex Senior High School, were statistically analyzed

to determine on how pricing strategies will have a noticeable effect on how

students make decisions when buying. The data gathered was carefully filed in

tables, analyzed, and interpreted accordingly based on the results of the

statistical treatments. In this study, the researchers used frequency distribution

and weighted mean.

Frequency and Percentage. Frequency distribution is a data

arrangement that shows the frequency of different values or

variables, while percentage is used to determine the proportion of

each given data. The demographic profile variables of the

respondents were analyzed using the frequency and percentage

distribution with the following formula:

𝑓
%= (100)
𝑁
 21

Where:

% − 𝑠𝑦𝑚𝑏𝑜𝑙𝑖𝑧𝑒𝑠 𝑡ℎ𝑒 𝑝𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒

𝑓 − 𝑠𝑦𝑚𝑏𝑜𝑙𝑖𝑧𝑒𝑠 𝑡ℎ𝑒 𝑓𝑟𝑒𝑞𝑢𝑒𝑛𝑐𝑦

𝑁 − 𝑠𝑦𝑚𝑏𝑜𝑙𝑖𝑧𝑒𝑠 𝑡ℎ𝑒 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑟𝑒𝑠𝑝𝑜𝑛𝑑𝑒𝑛𝑡𝑠

100 − 𝑐𝑜𝑛𝑠𝑡𝑎𝑛𝑡 𝑚𝑢𝑙𝑡𝑖𝑝𝑙𝑖𝑒𝑟

Weighted Mean. During the actual data collection process, this

statistical tool was utilized to calculate the weight of the questionnaire

replies given by the respondents. The following is the formula for the

weighted mean:

Σ𝐹𝑊
𝑊𝑀 =
𝑁

Where:

𝑊𝑀 = 𝑊𝑒𝑖𝑔ℎ𝑡𝑒𝑑 𝑀𝑒𝑎𝑛

Σ = 𝑆𝑢𝑚𝑚𝑎𝑡𝑖𝑜𝑛 𝑠𝑦𝑚𝑏𝑜𝑙

F = 𝐹𝑟𝑒𝑞𝑢𝑒𝑛𝑐𝑦 𝑓𝑜𝑟 𝑒𝑎𝑐ℎ 𝑜𝑝𝑡𝑖𝑜𝑛

W = 𝐴𝑠𝑠𝑖𝑔𝑛𝑒𝑑 𝑤𝑒𝑖𝑔ℎ𝑡

N = 𝑇𝑜𝑡𝑎𝑙 𝑜𝑓 𝐹𝑟𝑒𝑞𝑢𝑒𝑛𝑐𝑖𝑒𝑠
 22

The following are the corresponding verbal interpretations for weighted mean.

Weighted Means/Equivalent Corresponding Remarks

2.60 – 3.00 Strongly Agree

2.20 – 2.59 Agree

1.80 – 2.19 Neutral

1.40 – 1.79 Disagree

1.00 – 1.39 Strongly Disagree

Likert Scale. The following Likert Scale serves as the guide for

interpreting the data gathered.

Weighted
Scale Corresponding Remarks
Means/Equivalent

5 4.20 – 5.00 Strongly Agree

4 3.40 – 4.19 Agree

3 2.60 – 3.39 Neutral

2 1.80 – 2.59 Disagree

1 1.00 – 1.79 Strongly Disagree

3. Pearson R
The Pearson correlation coefficient (r) as stated by Turney (2022), is the

most common way of measuring a linear correlation. It is a number between –

1 and 1 that measures the strength and direction of the relationship between

two variables.

𝑛(Σ𝑥𝑦) − (Σ𝑥)(Σ𝑦)
𝑟=
[𝑛Σ𝑥 2 − (Σ𝑥)2 ][𝑛Σ𝑦 2 − (Σ𝑦)2 ]
 23

Where:

r = Pearson Coefficient

n = Number of paired scores

∑xy = Sum of the product of each paired scores

∑x = Sum of the x scores

∑y = Sum of the y scores

∑x² = Sum of the squared x scores

∑y² = Sum of the squared y scores

 24

APPENDICES

Research Questionnaire

Objectives:

This survey questionnaire aims to examine the impact of different pricing

strategies to the decision making of Grade 12 ABM Students in San Jose-Litex

Senior High School in terms of buying a product.

PART I. Profile Demographics

Directions: Put a check mark (/) in the appropriate column that corresponds to

your answer.

Name (Optional): __________________________________________

Age:

 16

 17

 18

 19

 20 and above

Sex:

 Male

 Female

Budget Allowances:

 Daily

 Weekly

 Monthly
 25

PART II. Pricing Strategies

Directions: Please indicate your level of agreement or disagreement with

each of these statements regarding of how different pricing strategies affects

your decision making in terms of buying a product by putting a check in a box

on a right side of each statement with a scale ranging from 1-5. Where in the

(1) is strongly disagree, (2) is disagree, (3) is neutral, (4) agree, and the last

one is (5) strongly agree.

Cost-plus Pricing 5 4 3 2 1
(SA) (A) (N) (D) (SD)

1. The perceived value of a product, aligned with

the cost-plus pricing strategy, influences my
decision-making when purchasing.

2. I am aware of the production cost of a product

and it impacts my evaluation of its overall value
and my decision to purchase.

3. I find myself more inclined to purchase products

priced with a cost-plus approach compared to
other pricing strategies.

4. My understanding of the cost-plus pricing

strategy influence my perception of a product's
affordability.

5. The production cost of a product gives me

confidence in its value.
 26

Value-based Pricing 5 4 3 2 1
(SA) (A) (N) (D) (SD)

1. The perceived value of a product, considering

its quality and features, impacts my willingness to
pay.

2. The perceived value of a premium or high-end

product influences my willingness to pay a higher
price for it.

3. My understanding of the value-based pricing

strategy affect my purchasing decisions.

4. The perceived value of a product influence my

preference for certain brands using a value-based
pricing approach.

5. The perceived value of a product play a

significant role in my decision-making process
when buying.

Bundle Pricing 5 4 3 2 1
(SA) (A) (N) (D) (SD)

1. I find myself more inclined to purchase products

offered in bundles, where multiple items are sold
together, as opposed to individual items.

2. The overall cost savings influence my decision,

even if I may not need all items in the bundle.

3. My awareness of the bundle pricing strategy

influence my choice when deciding to buy a
product.

4. The convenience of purchasing a bundle affects

my decision-making process.

5. The option of bundle pricing influences my

perception of a product's affordability.
 27

Price Skimming 5 4 3 2 1
(SA) (A) (N) (D) (SD)

1. When a new innovative product is introduced at

a higher initial price that later decreases, it
influences my decision to buy.

2. My perception of a product's exclusivity, often

associated with price skimming, affects my
decision to purchase.

3. My awareness of the price skimming strategy

influence my evaluation of a product's value.

4. The initial higher price of a product using price

skimming makes the product more appealing.

5. Products that implement the price skimming

strategy are more engaging and alluring.

Psychological Pricing 5 4 3 2 1
(SA) (A) (N) (D) (SD)

1. Stumbling upon a product at Php99.99 instead

of Php100.00, influence my perception and
decision-making.

2. Odd-numbered prices, commonly used in

psychological pricing, impact my perception of a
product's affordability.

3. My awareness of psychological pricing tactics

influence my decision when choosing between
products.

4. Products with prices ending in .99 appear more

affordable and influence my likelihood to
purchase.

5. The use of psychological pricing techniques

affects my overall perception of product value and
pricing.
 28

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 30

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