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Discount Strategies & Purchase Frequency in Baguio

The document examines the impact of various discount pricing strategies on customer purchase frequency at ukay-ukay stalls and tiangge in Baguio City. It identifies independent variables such as percentage discounts, bundle discounts, and seasonal discounts, and dependent variables like daily, weekly, and monthly purchase frequencies. The study aims to determine the effectiveness of these strategies in increasing repeat purchases and their relationship with customer loyalty from both a general and accounting perspective.
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0% found this document useful (0 votes)
4 views4 pages

Discount Strategies & Purchase Frequency in Baguio

The document examines the impact of various discount pricing strategies on customer purchase frequency at ukay-ukay stalls and tiangge in Baguio City. It identifies independent variables such as percentage discounts, bundle discounts, and seasonal discounts, and dependent variables like daily, weekly, and monthly purchase frequencies. The study aims to determine the effectiveness of these strategies in increasing repeat purchases and their relationship with customer loyalty from both a general and accounting perspective.
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Customer Purchase Frequency and Discount Pricing Strategies of Ukay-Ukay Stalls and

Tiangge in Baguio City

1. Independent Variable (IV):

Discount Pricing Strategies – the ways sellers adjust or reduce prices to attract buyers.

Sub-variables:

• Percentage Discounts (e.g., 10%, 20%, 50% off)

• Bundle Discounts (e.g., buy 1 take 1, buy 3 for ₱100)

• Seasonal/Occasional Discounts (e.g., Panagbenga, Christmas, end-of-season


sales)

• Negotiated/Bargaining Discounts (customer-seller haggling)

• Clearance/Overstock Discounts (mark-downs for old stock)

2. Dependent Variable (DV):

Customer Purchase Frequency – how often customers buy from ukay-ukay stalls/tiangge.

Sub-variables:

• Daily Purchase (frequency within a day)

• Weekly Purchase (number of visits/buys in a week)

• Monthly Purchase (number of times a customer shops in a month)

• Purchase Volume per Visit (how many items on average per transaction)

• Repeat Purchases (loyalty/returning customers)

Focus of the Study

to examine how different discount pricing strategies influence how frequently customers
purchase from ukay-ukay stalls and tiangge in Baguio City.

focusing on:

• Which type of discount strategy is most effective in increasing repeat purchases.

• Whether heavier discounts (e.g., 50% off) lead to higher purchase frequency or
only occasional bulk buying.
• How customer buying patterns (daily, weekly, monthly visits) are affected by the
pricing tactics of stall owners.

• The relationship between discount style (fixed % vs. bargaining) and customer
loyalty

Discount Pricing Strategies (Independent Variable)

the parameters/indicators:

1. Percentage Discounts

• Parameter: Discount rate given (e.g., 10%, 20%, 50%)

• Measurement: Frequency of offering these discounts per week/month

2. Bundle Discounts

• Parameter: Types of bundles offered (e.g., Buy 1 Take 1, 3 for ₱100, 5 for ₱200)

• Measurement: Number of bundle deals available in the stall

3. Seasonal/Occasional Discounts

• Parameter: Timing (e.g., during Panagbenga, Christmas, back-to-school season)

• Measurement: Frequency of seasonal discounts in a year

4. Negotiated/Bargaining Discounts

• Parameter: Degree of price flexibility (how much sellers lower price after
haggling)

• Measurement: Average percentage reduced after negotiation

5. Clearance/Overstock Discounts

• Parameter: Depth of markdowns (e.g., ₱10 rack, final price drop)

• Measurement: Percentage of items sold at clearance prices

Discount Pricing Strategies and Customer Purchase Frequency of Ukay-Ukay Stalls and
Tiangge in Baguio City: An Accounting Perspective

1. Independent Variable (IV):

Discount Pricing Strategies

Sub-variables & Parameters (Accounting Quantifiable):


• Percentage Discounts → % reduction applied on original price (e.g.,
10%, 20%, 50%)

• Bundle Discounts → average unit price per bundle (e.g., 3 for ₱100 →
₱33.33 each vs. ₱50 regular price)

• Seasonal/Occasional Discounts → frequency of discounts during


specific periods (count/month or count/year)

• Negotiated Discounts (Haggling) → difference between posted price


and actual selling price (₱ or %)

• Clearance Discounts → markdown % for old stock (e.g., ₱10 rack from
₱50 original)

From an accounting lens → parameters can be tied to gross sales, average selling
price, and revenue foregone due to discounts.

2. Dependent Variable (DV):

Customer Purchase Frequency

Sub-variables & Parameters (Accounting Quantifiable):

• Daily Purchases → number of transactions per day

• Weekly Purchases → average purchases per customer per week

• Monthly Purchases → number of purchases per month

• Purchase Volume per Visit → average quantity bought per transaction


(e.g., 2 pcs, 5 pcs, bulk)

• Repeat Purchases (Customer Loyalty) → % of returning customers vs.


one-time buyers

From an accounting lens → parameters can be linked to sales turnover, customer


retention rate, and contribution to total revenue.

Focus of the Study (Accounting Perspective)

This study will focus on:

• How different discount strategies affect sales volume and revenue stability of
ukay-ukay stalls.

• Whether frequent discounts increase short-term sales but reduce profit margin.
• The link between customer purchase frequency and cash inflows/turnover.

• Identifying which discount strategy maximizes both customer frequency and


sustainable revenue.

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