Essay Sample Marketing: Designing an Experiment

Introduction

A firm can have the best product, but if it does not have the firm and contextually designed go-to-market (GTM) approach and implementation, you will fail (Fletcher, 2019). Fletcher (2019) adds that marketing is essential in creating brand awareness, prospects, lead generation, and customer nurturing. Some factors that need to adhere when formulating the pricing strategy includes the following with the following sequence:

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• Establish the business goals
• Develop a comprehensive market pricing study
• Analyze the target audience
• Outline the competitive setting
• Develop a pricing approach and implementation plan.

The experiment conducted is essential for the company especially during the decision-making process. As shown by Castro, Majmundar, Williams, and Baquero, 2018), the experiment helps in establishing the nature of the market and the response of the customers towards the products and areas of improvement that promote sales. The following research has the merits that determine the consumers' purchase intentions based on the product due to their latest pricing approaches (high or low) as well as product quality (i.e., nonorganic offerings, organic offerings) strategies. The following are answers to the experiment guidelines.

Subjects

The participants involved in this experiment are the consumers who take cereals for breakfast, in-between snack or main meals. In addition, the participants are from diverse income group, workplace, work type and age group. The participants are not only from a single geographical but are within the market scope and can potentially purchase the product. The participants vary based on the geographical locations. Although some of the consumers are of young age, their parents or dependants who purchase the products are the ones who will be considered as the participants since they are the ones with the purchasing power and influence the decision to purchase the product (Lancioni, 2005).

Experimental Conditions

Based on the nature of the experiment conducted on consumer purchase intention, the respective variables for the research are as follows:

• Independent variable - quality (categorical), price
• Dependent variable - Propensity to pay

Since this is the controlled experiment the variables shows that one aspect affects the other throughout the study. Therefore, the accuracy is measured based on the relationship between the dependent and independent variables. The variables are formed from the market and sales information as well as the determinants of sales of the products (Baker, 2010).).

Effects

The main effects are the influence of the independent variables on the tendency to pay, in a way that, it affects how much the price or quality of the propensity to pay. While the interaction effect involves the influence of interaction among two or more independent variables on the dependent variable, such that the effects on the quality on the propensity to pay to rely on the product price.

Conclusion

To sum up, the interaction effects assist in establishing the combination of quality and prices that is favorable to be purchased. Various variables applied in determining the relationship between the price and quality shows the nature of the relationship the consumer has towards the product. This shows that the variation in quality affects the price hence the Propensity to pay

References

Baker, R. J. (2010). Pricing on purpose: Creating and capturing value. John Wiley & Sons.

Castro, I., Majmundar, A., Williams, C., & Baquero, B. (2018). Customer Purchase Intentions and Choice in Food Retail Environments: A Scoping Review. International Journal Of Environmental Research And Public Health, 15(11), 2493. doi: 10.3390/ijerph15112493

Fletcher, P. (2019). 5 Easy Steps to Creating the Right Pricing Strategy. Retrieved from https://www.inc.com/patricia-fletcher/5-easy-steps-to-create-the-right-pricing-strategy.html

Lancioni, R. (2005). Pricing issues in industrial marketing. Industrial Marketing Management, 34(2), 111-114.