The Effect of Price Fluctuation on Consumer Buying Decisions

This study investigates the effect of price fluctuation on consumer buying decisions of agricultural produce, with a specific focus on rice consumers in Ilorin, Kwara State, Nigeria. It explores how different dimensions of price instability including seasonal price changes, competitor pricing, dynamic pricing strategies, and inflation shape consumer behaviours such as purchase intention, switching behaviour, purchase frequency, and perceived value. The study adopts the Theory of Planned Behaviour (TPB) as its theoretical framework to understand the psychological and behavioural responses to price variability. A survey research design was employed using a structured questionnaire administered to 384 purposively selected consumers of rice. Descriptive and inferential statistical methods, particularly linear regression analysis, were used to analyze the data. Findings revealed significant relationships between price fluctuation variables and various aspects of consumer buying decisions. Seasonal price changes and inflation had particularly strong influences on purchase intention and perceived value, while competitor pricing and dynamic strategies affected switching and purchase frequency. The study contributes to both academic discourse and practical policy by offering empirical insights into how pricing dynamics influence consumer behaviour in the agricultural sector. It recommends strategic pricing, market stabilization mechanisms, and improved transparency to mitigate the adverse effects of price volatility on consumer welfare and market participation.