ABSTRACT
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 of beverages firm using Blessed Food and Beverages as the case study. The study employed descriptive survey research design with a sample size of seventy-eight respondents. Questionnaire was designed for testing the three hypotheses derived. The hypotheses were tested using correlational analysis. Findings from the study revealed that pricing policy of a firm influence the degree at which it can achieve optimum profitability; it also showed that pricing harmonization and pricing discrimination significantly impact the profitability of manufacturing firm. The study recommends 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 Problem
1.3 Objective of the Study
1.4 Research Questions
1.5 Research Hypotheses
1.6 Scope of the Study
1.7 Limitation of the Study
1.8 Justification of the Study
1.9 Operational Definition of Terms
1.10 Organisation of the Study
CHAPTER TWO: Literature Review
2.1 Conceptual Review
2.1.1 Pricing and Pricing Decision
2.1.2 Objectives of Price
2.1.3 Profitability Objectives
2.1.4 Pricing Methods
2.1.5 Approaches to Pricing
2.1.6 Causes of Product Price Changes
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
2.4 Historical Background of Blessed Food and Beverages
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 Method of Data Analysis
CHAPTER FOUR: Data Presentation, Interpretation and Analysis
4.1 Analysis of Respondents’ Demographic Characteristics
4.2 Analysis of Questionnaire Items
4.3 Test of Hypotheses
CHAPTER FIVE: Summary of Findings, Conclusion and Recommendations
5.1 Summary of Findings
5.2 Conclusion
5.3 Recommendations
References
