PRICING STRATEGY OPTIMIZATION FOR TRADITIONAL SCENTED CANDLE PRODUCTS IN DIFFERENTIATED LUXURY GOODS MARKETS

Pricing strategy was a factor of competitive advantage in the markets for luxury goods in which product value, brand and differentiation are determinants of consumer’s choices. The approach may allow premium positioning and competitive advantage. This research investigates Pricing Strategy Optimization (PSO) for traditional scented candles, focusing on Consumer Price Perception (CPP), Brand Equity (BE), Sales Volume (SV), Customer Retention (CR), and Overall Market Performance (OMP). The research was carried out with 285 respondents from various fields including marketing managers, executives, and managers working in luxury candle companies. 5-point Likert scale structured questionnaires were distributed through online and physical mediums. Quantitative data were analysed using the Statistical Package for the Social Sciences (SPSS) 27 through descriptive statistics, correlation, regression, and reliability analysis. It examined production costs, scent complexity, packaging exclusivity, and brand positioning as key pricing determinants. Results revealed positive correlations between pricing strategy optimization and overall market performance (r = 0.66), consumer price perception (r = 0.62), and brand equity (r = 0.58). Regression analysis indicated positive relationships with consumer price perception (β = 0.68), overall market performance (β = 0.65), brand equity (β = 0.62), customer retention (β = 0.59), and sales volume (β = 0.54). Reliability analysis demonstrated acceptable internal consistency across all variables. The results highlight the importance of including product differentiation, perceived value, and brand positioning into pricing decisions. This provides empirical findings to assist in pricing decisions, which may ultimately improve competitiveness and sustainable profitability in the market for scented candles.