SNIŽENJE CIJENA KAO ČIMBENIK ODLUKE O KUPNJI POTROŠAČA NA TRŽIŠTU MALOPRODAJE
PRICE REDUCTION AS A FACTOR INFLUANCING PURCHASING DECISION OF CONSUMERS IN RETAIL MARKET

Summary/Abstract: Main goal of every retailer is purchase of products by consumers in store-shops. Environment in which retail companies operate is very turbulent and it is constantly changing. In order to motivate consumers to purchase certain product precisely in their store-shop, retailers often resort to activities pertaining to price reduction of certain products from their product assortment. Therefore, the purpose of this paper is to examine the impact of price reduction on consumer's reaction during purchase of food products in retail market. In Bosnia and Herzegovina, for instance, in which the impact of price reduction on purchasing decision is being examined, in the past 10 years came to concentration of retail network, and the same trend is still in process. Small number of retail chains, namely, has crucial impact on business processes and dictates rules of the game in retail while at the same time small store-shops more and more lose their significance in the market. Up to this point, researches did not analyze certain types of price reduction and their impact on consumer responses, therefore in this paper we will make detail and comprehensive classification of different types of price reduction and their implementation by leading retail chains in Bosnia and Herzegovina. In order to attain an objective we conducted an empirical research on sales of several food products before, during and after price reduction in five retail chains operating in the market of Bosnia and Herzegovina.

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