Philippine E-Journals

Pricing Strategies and Consumer Purchase Intention in Agribusiness: An Integrative Review

Lea Angela C. Arreza | Dorielle M. Bual | Clayde G. Parreñas

Discipline: business and management (non-specific)

 

Abstract:

Pricing strategies are a central determinant of consumer purchase intention, yet their application and effectiveness in agribusiness contexts remain underexplored. This integrative literature review synthesizes findings from 42 peer-reviewed studies published between 2019 and 2025 to examine how cost-based, value-based, promotional, and dynamic pricing strategies influence consumer purchase intention for agricultural products. The review organizes insights across five thematic areas: pricing strategy typologies, price perception and fairness, consumer purchase intention models, agribusiness-specific pricing challenges, and moderating variables such as income, culture, and product type. Results indicate that while cost-based pricing remains dominant for commodity products, it exerts limited direct influence on consumer decisionmaking. In contrast, value-based and dynamic pricing strategies are more effective in stimulating purchase intention for differentiated goods such as organic, sustainably produced, or certified products. Promotional pricing demonstrates strong short-term effects but risks eroding consumer trust if perceived as unfair or inconsistent. The review emphasizes that consumer purchase intention is influenced by perceptions of fairness, trust, and value, and affected by socioeconomic and cultural factors. From a theoretical perspective, the study highlights the importance of the Theory of Planned Behavior, Price–Quality Inference Theory, Consumer Value Theory, and the Stimulus–Organism–Response model in explaining the cognitive, perceptual, and behavioral processes that connect pricing strategies to purchase intention. However, methodological limitations remain, including reliance on cross-sectional survey designs, self-reported data, and the underrepresentation of emerging agribusiness markets. Overall, this review contributes to both theory and practice by consolidating fragmented insights, identifying research gaps, and offering guidance for managers and policymakers to design transparent, value-oriented pricing strategies that align with consumer perceptions and market dynamics. Future research directions emphasize the need for longitudinal and experimental designs, integration of behavioral and transactional data, and cross-cultural comparative studies to strengthen external validity and advance sustainable agribusiness practices.