Page 77 - MARSIUM'21 COMP OF PAPER

EFFECT OF REFERENCE PRICE TOWARD CUSTOMER PURCHASE INTENTION
ON FROZEN FOOD: A CASE STUDY AT RESTAURANT VEGETARIAN S.I. JIN WEI

Tan Yi Ting, Dr. Adaviah binti Mas’od

Azman Hashim International Business School, Universiti Teknologi Malaysia, Johor Bahru.

*Corresponding author: yttan@graduate.utm.my & adaviah@utm.my

Abstract

With the start of Covid-19 pandemic, food prices increased faster than average inflation globally.

Therefore, the price willing to pay by the customers for products/services depends on utility. Reference
price defined as the price assumption needed to pay by customers which can be appeared in terms of

internal (memory-based) or external (stimulus-based). Customers act sensitively as the reference pricing
can change their perception of its value. Hence, 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 adopted by distributing 170 sets of
online questionnaires through Google Form. Target respondents were chosen from the individuals with

the buying experience on frozen food at Restaurant Vegetarian S.I. Jin Wei by using the purposive

sampling technique. SPSS computer software was used for data analysis. Findings illustrated that price
history, store visit history, customer characteristics and product category have influenced the customer

purchase intention positively and significantly. In contrast, store environment will not significantly
influence customer purchase intention. To conclude, findings are expected to provide insights and

guidance to the entrepreneurs on the effect of reference price in order to enhance customer purchase
intention.

Keywords: Reference price, Customer purchase intention

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