Effect of Reference Price toward Customer Purchase Intention on Frozen Food: A Case Study at Restaurant Vegetarian

Abstract

Reference price is defined as the price assumption needed to pay by customers by referring to the actual price of the products. Reference price can be appeared in terms of internal (memory-based) or external (stimulus-based). Customers tend to act sensitively as the reference pricing can change their perception of its value. On the other hand, food prices increase faster than average inflation globally with the start of Covid-19 pandemic. Therefore, the price of a customer willing to pay for products and services depends on its utility. In this study, researcher aims to examine the effect of reference price including price history, store visit history, customer characteristics, store environment and product category on customer purchase intention. Quantitative method was conducted by distributing 110 set of online questionnaires through Google Form. Target respondents will be selected from the individuals who have the buying experience at Restaurant Vegetarian S.I Jin Wei by using the purposive sampling technique. Researcher will convert all the data collected from respondents into SPSS computer software for data analysis to obtain the findings. To conclude, all these findings will definitely enhance customer purchase intention and improve the understanding among sellers and buyers on customer needs and wants.