ABSTRACT

The study investigated on the effect of pricing policy on marketing performance in beverage industry. The objectives of the study are; to examine the effects of penetration pricing policy on sales volume, to examine the effects of skimming pricing policy on market shares and to examine the effects of competitive pricing policy on profitability. To achieve the objectives of the study, correlational research design was adopted. The researcher adopted primary data in getting the required information. Out of 80 questionnaires issued to the respondents, 60 representing 75% were carefully filled and returned. In testing the hypothesis, correlation coefficient was used. The major findings reviewed that penetration pricing policy has a significant effect on sales volume in the beverage industry. The findings also reviewed that skimming pricing policy has a significant effect on market share in the beverage industry. The findings further reviewed that competitive pricing policy does not have any significant effect on profitability in the beverage industry. The researcher recommends that Organizations in Nigeria should take time to conduct market research, because this is a toll that can be used for effective pricing. The researcher also recommends that the organizational objective should be visited when making pricing policy, Management of small and medium enterprises should always have adequate information about the cost of production before changing price.

TABLE OF CONTENTS

Title Page- - - - -- - - - - - i

Declaration - - - -- - - - - - ii

Certification - - - -- - - - - - iii

Dedication- - - -- - - - iv

Acknowledgement - - - -- - - - - v

List of Tables -- - - - - - - vi

Table of Contents - - - -- - - - - vii 

Abstract - - - -- - - - - - x

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study  - - - -- - - 1  

1.2   Statement of the Problem- - - -- - - - 3

1.3 Objectives of the Study- - - -- - - - 3

1.4 Research Questions- - - -- - - - 3

1.5 Research Hypotheses - - - -- - - - 4

1.6 Significance of the Study - - - -- - - 4

1.7 Scope of the Study - - - -- - - - 5

1.8 Limitation of the Study - - - -- - - 5

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1 Conceptual Frame Work - - - -- - - 7

2.2 The Effect of Pricing Policy on Sales Volume - - 8

2.3 Impacts of Market Shares on Performance - - - 9

2.4 Impacts of Pricing Policy on the Profitability

Level of an Organization - - - -- - - 11

2.5 Internal Factors Affecting Pricing - - - - 12

2.6 External Factors Affecting Formation of Pricing - - 14

2.7 Economic Factors Affecting Pricing - - - - 15

2.8 Price Determination in a Competitive Market - - 15

2.9 Summary of Literature - - - -- - - - 16

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research Design - - - -- - - - 17

3.2 Area of Study- - - -- - - - - 17

3.3 Sources of Data and Method of Collection - - - 18

3.4 Population of the Study- - - -- - - - 18

3.5 Sample Procedure and Sample Size - - - -- - 18

3.6 Validity of the Research Instrument- - - -- - 19

3.7 Reliability of the Research Instrument - - - 19

3.8 Method of Data Analysis -- - - - - - 20

3.9 Model Specification - - - -- - - - 20

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1     Data Presentation - - - -- - - - 21

4.2 Test of Hypotheses - - - -- - - - 30

4.3 Discussion of Findings - - - -- - - - 36

CHAPTER FIVE 

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 Summary of Findings - - - -- - - - 38

5.2 Conclusion - - - -- - - - - - 39

5.3 Recommendations - - - -- - - - 40

REFERENCES

APPENDIX