Price element of marketing mix: Its effect on customer experience in construction industries

Abstract: The objective of this paper was to identify aspects of pricing strategy that impact customer experience within the construction industries. A literature review examined the antecedents driving customer satisfaction. A conceptual framework relating two dimensions namely, pricing strategy and customer experience was developed to evaluate customer satisfaction. Several latent variables related to the marketing mix and customer experience were introduced. Latent variables were measured through a 5-point Likert Scale questionnaire and analyzed by Structural Equation Modelling. Three aspects of pricing strategy and four aspects of customer experience were identified as parameters pertinent to customer satisfaction. Findings showed that price value, price advantage and price penetration influenced pricing strategy. Reputation, confidence, information and expertise influenced customer experience. This paper contributes to understanding the significance of pricing strategy and customer experience as the foundation for customer satisfaction and business profitability. These findings were presented as recommendations to the construction industry.

How to cite this paper

 Al-Fadly, A. (2020). Price element of marketing mix: Its effect on customer experience in construction industries.Management Science Letters , 10(15), 3643-3654.

Refrences

Agrawal, V., Garimella, P. S., Roshan, S. J., & Ghosh, A. K. (2009). Questionnaire survey of physicians: Design and practical use in nephrology. Indian Journal of Nephrology, 19(2), 41-47.
Ali, A. J., Al-Aali, A., & Al-Owaihan, A. (2013). Islamic Perspectives on Profit Maximization. Journal of Business Ethics, 117, 467-475.
Birkett, M. A., & Day, S. J. (1994). Internal pilot studies for estimating sample size. Statistics in Medicine, 13, 23-24.
Bollen, D. G. (2002). Sample size requirements for testing and estimating coefficient alpha. Journal of Educational Behaviour Statistic, 27(4), 335-340.
Bollen, K. A. (1989). A new incremental fit index for general structural equation models. Sociological Methods & Research, 17, 303-316.
Cochran, W. G. (2007). Sampling Techniques, 3rd Edition. India: Wiley India Pvt. Limited.
Constantinides, E. (2006). The Marketing Mix Revisited: Towards the 21st Century Marketing. Journal of Marketing Management, 22, 407-438.
Do, Q., & Vu, T. (2020). Understanding consumer satisfaction with railway transportation service: An application of 7Ps marketing mix. Management Science Letters, 10(6), 1341-1350.
Dominici, G. (2009). From Marketing Mix to E-Marketing Mix: a Literature Overview and Classification. International Journal of Business and Management, 4(9), 17-22.
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.
Garson, G. D. (2012). Testing Statistical Assumptions. North Carolina: Statistical Associates Publishing.
Goi, C. L. (2009). A Review of Marketing Mix: 4Ps or More? International Journal of Marketing Studies, 1(1), 1-15.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate Data Analysis. Essen: Pearson New International Edition.
Hair, J., Hult, G. T., Ringle, C., & Sarstedt, M. (2014). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Los Angeles: SAGE Publications, Incorporated.
Hausman, A. (2010, August 24). Marketing Strategy: The Pricing Element. Retrieved May 26, 2020, from Market Maven: https://www.hausmanmarketingletter.com/marketing-strategy-the-pricing-element/
Henson, R. K., & Roberts, J. K. (2006). Use of Exploratory Factor Analysis in Published Research: Common Errors and Some Comment on Improved Practice. Educational and Psychological Measurement, 66(3).
Hox, J. J., & Bechger, T. M. (2010). An Introduction to Structural Equation Modeling. Family Science Review, 11, 354-372.
Khadka, K., & Maharjan, S. (2017). Customer Satisfaction and Customer Loyalty. Pietarsaari: Centria University of Applied Sciences.
Kotler, P., & Armstrong, G. (2010). A study of ecommerce adoption. Journal of the Association for Information Systems, 1(18), 1-28.
Lemon, K. N., & Verhoef, P. C. (2016). Understanding customer experience throughout the customer journey. Journal of Marketing, 80(6), 69-96.
Mokhtariani, M., Sebt, M. H., & Davoudpour, H. (2017). Characteristics of the Construction Industry from the Marketing Viewpoint: Challenges and Solutions. Civil Engineering Journal, 3(9), 701-714.
Othman, A. A. (2015). An international index for customer satisfaction in the construction industry. International Journal of Construction Management, 1, 1-26.
Othman, B., Harun, A., Rashid, W., Nazeer, S., Kassim, A., & Kadhim, K. (2019). The influences of service marketing mix on customer loyalty towards Umrah travel agents: Evidence from Malaysia. Management Science Letters, 9(6), 865-876.
Radhakrishna, R. B. (2007). Tips for developing and testing questionnaires/instruments. Journal of Extension, 45(1), 1-4.
Ross, G. (2012). Re-thinking and re-tooling the social marketing mix. Australian and New Zealand Marketing Academy, 20(2), 122-126.
Siddiqi, K. O. (2011). Interrelations between Service Quality Attributes, Customer Satisfaction and Customer Loyalty in the Retail Banking Sector in Bangladesh. International Journal of Business and Management, 6(3), 1-25.
Sudari, S., Tarofder, A., Khatibi, A., & Tham, J. (2019). Measuring the critical effect of marketing mix on customer loyal-ty through customer satisfaction in food and beverage products. Management Science Letters, 9(9), 1385-1396.
Tabachnick, B. G., & Fidell, L. S. (2007). Using multivariate statistics (5th ed.). Allyn & Bacon/Pearson Education.
Vliet, V. V. (2011). Service Marketing mix (7 P’s). Retrieved January 10, 2020, from ToolsHero: https://www.toolshero.com/marketing/service-marketing-mix-7ps/
Weston, R., & Gore, P. A. (2006). A Brief Guide to Structural. Guide to SEM, 719-751.
Williams, B., Brown, T., & Onsman, A. (2012). Exploratory factor analysis: A five-step guide for novices. Australasian Journal of Paramedicine, 8(13), 1-13.
Yelkur, R. (2000). Customer Satisfaction and the Services Marketing Mix. Journal of Professional Services Marketing, 21, 105-115.