Description:
This study assessed the relationship between Pricing Strategies and Consumer Purchasing
decision on the airline industry in Tanzania. Specifically, the study intended to identify the
relationship between discount pricing strategy, bundle pricing strategy and prestige pricing
strategy and the consumer purchasing decision. The study was conducted in Tanzania at Julius
Kambarage Nyerere International Airport. The sample size for this study was 397 respondents
who were airline customers.
The study used a descriptive design. Primary data were collected through questionnaires in a
form of Google form while secondary data were collected through reviewing various Airline
documents. Data collected were analyzed by SPSS (Statistical Package for Social Science) and
excel 2013 was used and the findings are presented in tables.
The study revealed that discount pricing strategy, bundle pricing strategy and prestige pricing
have influence on consumer purchasing decision. Moreover, the study found out that discount
price appears to be the most influencing factor in purchasing decisions.
The study recommended that Tanzanian airlines should make consideration in fares, especially
Air Tanzanian and precision airline they should reduce their Ticket price. Baggage fees and the
price of refreshments provided inside the airline they should be reduced. Furthermore, flight
cancellation should not be eradicated and customer care should be improved to both airlines.