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CHAPTER 1

INTRODUCTION

EFFECTS OF DISCOUNTS IN CONSUMER PURCHASING

DECISION

According to Business Dictionary (2019), discount is a deduction from

the par value of a financial instrument, made in advance of it sale. Today,

business establishments are rapidly growing in our society. Most of the

successful entrepreneurs start from a humble beginning until their business

grow and develop. Part of making the business grow is having a good

marketing strategy just like implementing discount. This is the reason why

different strategies are developed to pursue the consumers to buy products. In

business industry, where competitors are sprouting from time to time, needs to

have well prepared palm to sustain the performance. Developing discounts

helps the business achieve its goal.

This study generally aims to evaluate how discounts affect the

consumers’ purchasing decision. This will also find out how effective discounts

as marketing strategy.
Objectives of the study

The general objective of this study is to evaluate how discounts


affect the consumers’ purchasing decision.

Specifically:

A. Identify the particular number of establishments that use a specific


discounts that affect the consumer purchasing decision.
B. Determine if discounts affect the sales or the monthly income of the
business.
C. To determine if discounts is an effective marketing strategy.

Statement of the Problem

This study aims to answer the following questions:

Main Question:

A. How discounts affect the consumers’ purchasing decision?

Specific Questions:

A. How many establishments used a specific discounts that


affect the consumer purchasing decision?

B. Do discounts affect the sales or the monthly income of the


business?
C. Is giving discounts considered an effective marketing
strategy?

Scope and Delimitation

This study includes 10 selected business establishments around

Kidapawan City. This is limited only in evaluating how discounts affect

consumers’ purchasing decision. The respondents are the owners and

managers chosen through judgmental sampling. The data will be gathered

using a checklist and a face-to-face interview. This will also employ the use of

a descriptive research.

Significance of the Study

This study is significant because it will help the business owners in

establishing the discount that may positively affect consumers’ purchasing

decision. Consumers will likewise benefit because they may enjoy the

opportunities of buying at discounted price. This is also helpful to the aspiring

business owners for it will give them information as to how discounts greatly
affect the business. In addition, future researchers may use this paper as a

basis or reference for similar study.

Definition of Terms

Consumers Purchasing Decision is the decision making of

consumers regarding market transaction before, during and after the purchase

of goods and services.

Discount is a deduction from the par value of a financial instrument,


made in advance of it sale. Today, business establishments are one of the
biggest and rapidly growing in our society.