Uticaj cijene i kvaliteta na kupovne namjere potrošača
The Effects on Buying and Quality on Consumer Buying Intensions

Summary/Abstract: This paper explores the direction and the intensity of the effects of prices and perceived quality on consumer buying intentions and the intensity of the effects of prices and price cutting on perceived quality. Based on the literature review two hypotheses are defined about the effects of prices and price cutting on perceived quality and three hypotheses about the effects of price, price cutting and perceived quality on consumer buying intensions. In order to test the defined hypothesis, empirical research was conducted on the sample of 256 undergraduate students of the Faculty of Economics and Business in Sarajevo. The results indicated that a significant positive correlation exists between the price and perceived quality. A significant negative correlation was established between price cutting and perceived quality. Research results also indicate that a significant positive relation exists between perceived quality and consumer buying intensions and between the price cutting and consumer buying intensions. The result of this research suggests that managers must wisely make decisions about prices and price cutting, bearing in mind that the decisions in the area of price policy have long-term effects on the perception of the quality of their products.

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