Abstract:
Title: The Impact of Discount Pricing on Consumer Perceptions of Product Quality: A Case Study of
Beer Consumers in Gondar City
Purpose: This study investigates the effect of discount pricing on consumer perceptions of product
quality, focusing on beer consumers in Gondar City. Although discount pricing strategies are designed to
attract customers and increase sales, they may also affect how consumers perceive product quality. The
research examines whether consumers associate lower prices with reduced quality and explores the
moderating role of brand loyalty in shaping these perceptions.
Methodology: The study employed both quantitative and qualitative approaches, within a descriptive and
explanatory research design. The sample consisted of 350 beer consumers in Gondar City, from whom
data were collected using a structured questionnaire, along with in-depth interviews with 10 consumers.
Statistical analyses included descriptive statistics, correlation analysis, regression analysis, ANOVA, and
moderation analysis using the SPSS Process Macro to detail differences in outcome variables.
Findings: The results indicate a strong inverse correlation between perceived product quality and
discount pricing, suggesting that many consumers associate lower prices with inferior quality. However,
brand loyalty was found to moderate this effect, mitigating the negative impact of discount pricing.
Consumers with high brand loyalty were less likely to perceive discounted beer as lower in quality.
Implications: These findings are significant for beer manufacturers and marketers. While discount
pricing can effectively boost short-term sales, overuse may harm brand image in the long term.
Therefore, companies should focus on building and maintaining brand loyalty to preserve positive quality
perceptions.
Summary: Although discount pricing affects consumer perception, the impact is not uniform and can be
influenced by brand loyalty and other external factors. This study contributes to marketing literature by
offering practical insights into pricing strategies that help maintain brand equity.
