PRICING STRATEGY: KEY TO CUSTOMER SATISFACTION IN HARDWARE RETAIL STORES

Abstract

Currently, the retail trade develops various marketing strategies to reach customers, such as competitive prices, promotions and quality in customer service. The objective of the research was to determine the relationship between price strategy and customer satisfaction in retail hardware stores in northern Peru. A survey was applied to 433 customers, and structural equation modeling was used to demonstrate the proposed model based on cost pricing theory and perceived value. The results indicated that the pricing strategy based on competitive pricing, customer segmentation and promotions results in higher customer satisfaction in retail hardware stores. It is concluded that the results obtained can serve as a basis for retailers to adjust and optimize their pricing strategies in order to generate higher levels of customer satisfaction. © 2024 Elsevier B.V., All rights reserved.