Price, cost, quality and value are all interrelated. Price is what a product or service is sold for and cost is what is bought for. Consumer perception towards Pricing of a product encountered in a shopping context influence consumer in quite different ways. Overall the pricing of a product plays a vital role in the purchase behavior of a customer. The main purpose of this study is to understand consumers’ psychology towards the pricing strategy of a products and their buying behavior accordingly. The research design is descriptive and primary data were collected using a survey questionnaire. The survey comprised 232 respondents from visitors at Express Avenue, Chennai and The Forum Vijaya Mall, Chennai. Questionnaire is the instrument used and followed consumers opinion by personal interviews for any feedback, difficulties or interpretations of questions in the questionnaire. The data was analyzed using the software SPSS and AMOS. The findings show that there is a positive relationship and significant difference between prices and consumer buying behavior. It also showed that there is statistically significant difference between the responses of individuals “due to age, gender, marital status, qualification and monthly salary”.

Keywords : Pricing, Consumer Psychology, Buying Behavior, Shopping Mall.