Pricing decision is a crucial decision every organization has to make, because this will eventually affect their corporate objectives, either directly or indirectly. For pricing to be effective, firms must incorporate factors like manufacturer’s pricing objective, economic situation, level of competition, and availability of close substitute in selecting the most advantageous price for its product. At times, firms are not in the habit of considering these factors and this has led to the shutting down of many factories, downsizing of workforce and in most cases, winding up of firms. This study therefore investigated the impact of pricing policies on profitability using Nigeria Wire and Cables in Ibadan, Oyo State, Nigeria as case study. The study employed descriptive survey research design with a sample size of sixty three respondents. Questionnaire was designed for testing the two hypotheses derived. The hypotheses were tested using ANOVA. The findings of the study revealed that pricing Policy of a firm have a significant influence on the degree to which a manufacturing firm can achieve optimum profitability. It showed that effective profit planning has effect on the profitability of manufacturing firms. Among other recommendations of the findings is that managers must always monitor the marketplace to determine prices that customers are willing to pay for products or service, if they must succeed, and that, price policy should be adopted on product for a group with similar propensity to consume.
TABLE OF CONTENTS
CHAPTER ONE: Introduction
1.1 Background to the study
1.2 Statement of the Problem
1.3 Objective of the Study
1.4 Research Questions
1.5 Research Hypotheses
1.6 Significance of the Study
1.7 Scope of the Study
1.8 Operational Definition of Terms
CHAPTER TWO: Literature Review
2.0 Introduction
2.1 Conceptual Review
2.1.1 Pricing and Pricing Decision
2.1.2 Objective of Price
2.1.3 Profitability Objectives
2.1.4 Pricing Methods
2.1.5 Pricing Approaches
2.1.6 Causes of Product Price Change
2.2 Theoretical Review
2.2.1 Naive Pricing Theory
2.2.2 Game Pricing Theory
2.2.3 Arbitrage Pricing Theory
2.2.4 Consumer Theory
2.3 Empirical Review
CHAPTER THREE: Research Methodology
3.1 Introduction
3.2 Research Design
3.3 Population of Study
3.4 Sample and Sampling Technique
3.5 Sources of Data and Collection Strategies
3.6 Research Instrument
3.7 Administration of Research Instrument
3.8 Validity of the Instrument
3.9 Reliability of the Instrument
3.10 Method of Data Analysis
3.11 Limitation of the Study
CHAPTER FOUR: Data Presentation, Analysis and Interpretation of Results
4.1 Presentation and Analysis of Data
4.2 Testing of Hypotheses
4.2.3 Summary of Findings
CHAPTER FIVE: Discussion, Conclusion and Recommendations
5.1 Discussion of Findings
5.2 Conclusion
5.3 Recommendations
References
APPENDIX: Questionnaire
