The Effect of Seasonal Discounting on Consumer Purchasing Decisions: A Case Study of Jumia Nigeria in Adamawa State
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Background of the Study
Seasonal discounting is a common pricing strategy employed by businesses to boost sales during specific periods, such as holidays or end-of-season sales. By offering temporary price reductions, companies aim to attract customers, clear inventory, and increase revenue (Kotler & Keller, 2023). Globally, seasonal discounts have been shown to influence consumer purchasing decisions, particularly in e-commerce markets.
In Nigeria, the rapid growth of online shopping platforms like Jumia has popularized seasonal discounting as a marketing tool. In Adamawa State, Jumia operates within a market characterized by diverse consumer preferences and varying purchasing power. Seasonal discounting plays a crucial role in shaping consumer behavior and driving sales for the platform (Okeke & Ibrahim, 2024).
This study investigates the effect of seasonal discounting on consumer purchasing decisions, focusing on Jumia Nigeria’s operations in Adamawa State.
Statement of the Problem
While seasonal discounting is widely used, its effectiveness in influencing consumer purchasing decisions varies based on factors such as discount size, timing, and marketing efforts. For Jumia Nigeria in Adamawa State, challenges such as low consumer trust in online platforms, inadequate promotional strategies, and delivery delays can undermine the effectiveness of seasonal discounting (Adamu & Hassan, 2023).
This study addresses these challenges by analyzing the relationship between seasonal discounting and consumer purchasing decisions, providing insights to optimize Jumia’s marketing strategies.
Objectives of the Study
- To assess the impact of seasonal discounting on consumer purchasing decisions at Jumia Nigeria in Adamawa State.
- To identify factors that influence the effectiveness of seasonal discounting at Jumia.
- To propose strategies for enhancing seasonal discounting practices to drive consumer purchasing decisions.
Research Questions
- How does seasonal discounting impact consumer purchasing decisions at Jumia Nigeria in Adamawa State?
- What factors influence the effectiveness of seasonal discounting at Jumia?
- What strategies can improve the effectiveness of seasonal discounting for Jumia?
Research Hypotheses
- Seasonal discounting does not significantly impact consumer purchasing decisions at Jumia Nigeria.
- The size of discounts significantly affects consumer responsiveness to seasonal discounting.
- Trust in the e-commerce platform does not significantly mediate the relationship between seasonal discounting and consumer purchasing decisions.
Scope and Limitations of the Study
This study focuses on seasonal discounting practices at Jumia Nigeria in Adamawa State, examining their impact on consumer purchasing decisions. Limitations include access to sales data, variations in consumer responses, and external factors such as economic conditions.
Definitions of Terms
- Seasonal Discounting: Temporary price reductions offered during specific periods to stimulate sales.
- Consumer Purchasing Decisions: The choices consumers make regarding whether, when, and how to buy products.
- E-commerce Platforms: Online marketplaces where goods and services are bought and sold.
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