The effect of economic hardship on pricing perception and product quality evaluation: A study of FMCG products in Port Harcourt, Nigeria
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Background of the study
Economic hardship significantly influences consumer behavior, particularly regarding the perceived value of Fast‑Moving Consumer Goods (FMCG). In Port Harcourt, where economic fluctuations impact disposable incomes, consumers become more sensitive to pricing and quality evaluations. This study investigates how economic hardship affects pricing perception and the evaluation of product quality for FMCG products. Pricing strategies, such as discounts and dynamic pricing, are often employed during economic downturns to maintain sales volume. However, these strategies can alter consumer perceptions of quality if low prices are equated with inferior products (Oluwole, 2023). The study examines the relationship between economic conditions, pricing adjustments, and consumer quality evaluations. It also considers factors such as brand reputation and promotional messaging in moderating these perceptions (Adeniyi, 2024). By collecting data from customer surveys, sales figures, and competitive market analysis, the research aims to determine whether price reductions during economic hardship lead to a degradation in perceived quality and how FMCG companies can mitigate these effects to sustain consumer trust (Ibrahim, 2023).
Statement of the problem
FMCG companies in Port Harcourt face challenges in balancing price reductions with maintaining high perceived product quality during economic hardship. Although discount pricing is necessary to stimulate sales during downturns, it may inadvertently signal lower quality to consumers, undermining brand equity (Oluwole, 2023). This creates a tension between affordability and quality perception that can negatively impact consumer purchase behavior. The lack of clarity regarding the long‑term effects of discount pricing on quality perception complicates strategic pricing decisions. This study addresses the problem by investigating how economic hardship influences pricing perception and product quality evaluation, seeking to provide insights into strategies that can preserve quality perceptions while offering competitive prices (Adeniyi, 2024).
Objectives of the Study
To examine the impact of economic hardship on pricing perception.
To assess how discount pricing affects product quality evaluation.
To recommend strategies that balance affordability with quality perception.
Research Questions
How does economic hardship influence consumer perceptions of pricing?
What is the impact of discount pricing on perceived product quality?
What strategies can FMCG companies adopt to sustain quality perception during economic downturns?
Significance of the study
This study is significant as it explores the interplay between economic hardship, pricing strategies, and product quality perception in the FMCG sector in Port Harcourt. The insights will assist companies in developing pricing models that maintain consumer trust and product value, even during economic downturns. The research contributes to academic debates on consumer behavior in challenging economic conditions and provides practical recommendations for strategic pricing (Oluwole, 2023; Adeniyi, 2024).
Scope and limitations of the study
The study is limited to analyzing pricing perception and product quality evaluation for FMCG products in Port Harcourt, Nigeria, and does not include other product categories or regions.
Definitions of terms
Pricing Perception: The consumer’s evaluation of the attractiveness and fairness of a product’s price.
Product Quality Evaluation: The assessment of a product’s excellence based on consumer experience and promotional cues.
FMCG Products: Fast‑moving consumer goods, typically everyday items with quick turnover.
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