ABSTRACT

This study is on the impact of pricing strategies on consumer behavior. Primary data was employed in this study using a sample size of 100 despondence drawn from 50 Etisalat subscribers and 50. Airtel subscribers, respectively in Umuahia so as to elicit useful information on the thrust of the study. A descriptive research design was used in this study. However, three research questions and hypotheses were formulated for the study and were tested using Chi-square test and spearman rank correlation at 5% level of significance. Based on the empirical findings of the study, it was organizations and consumer's perception. Furthermore, the study also revealed that respondents considered the pricing strategies of both telecommunications companies (Airtel and Etisalat) to be similar enough to be considered as same. Apparently, both adopt similar pricing strategies to create and cultivate their own share of the market. This most likely, since both are new entrants in the Nigerian telecommunications market (Airtel has been in the market since 2001 why changing ownership from Econet, Vmobile, Celtel, Zain and the most recent Airtel). The study equally revealed that purchasing strategies positively and significantly impact on organization profitability. This conclusion was based on the empirical evidence emanating from this study where the respondents to this study strongly agreed that a Firm's turnover depends on pricing strategy and [hat low call tariff increased firms profit base on high patronage. Hence, any telecommunications firm that does not improve in quality service delivery at affordable price will soon find itself wept into the gutters with most of its loyal subscribers "decamping" to a better option or alternative. It is therefore recommended that telecommunication companies, Airtel and Etisalat in particular should maintain consistent quality services, since the Nigerian market will switch loyalty within a short time if their services focus more expectation in terms of satisfaction is not met. Airtel and Etisalat Should on quality services delivery (widen their coverage, ensure uninterrupted communication, etc), also, they shouldput into consideration their pricing strategy as a sine qua nonfor high profitability. Their pricing strategy should cater for both the rich and poor.

TABLE OF CONTENTS

Cover page i

Title page ii

Declaration iii

Certification iv

Dedication v

Acknowledgement vi

Tableof content vii

Abstract           ix

CHAPTER ONE INTRODUCTION 1

1.1        Background of the Study 1

1.2       Statement of the Problem 2

1.3       Research Objectives 3

1.4       Research Questions 3

1.5       Research Hypotheses 4

1.6Research Hypotheses 4

1.7Scope of the Study 4

CHAPTER TWO 5

REVIEW OF RELATED LITERATURE 5

2.1       Marketing Concept 5

2.1.1     Marketing Orientations 5

2.1.2    Marketing Environment 7

2.1.3    Marketing Mix 8

2.2       Pricing 11

2.2.1Approaches Companies use to set Price 12

2.3       Setting the Price 14

2.3.1     Selecting the pricing objectives 14

2.3.2    Determining demand 15

2.3.3     Estimating costs 16

2.3.4    Analyzing competitors' cost price and offers 17

2.3.5     Selecting a pricing method 17

2.3.6    Selecting the final price 20

2.4       Adapting the price 21

2.4.1     Geographical pricing (cash, countertrade, barter) 21

2.4.2    Price discounts and allowances 21

2.4.3    Promotional pricing 22

CHAPTER THREE 23

RESEARCH METHODOLGY 23

3.1  Research design 23

3.2  Sample procedure 23

3.3  Data collection method 23

3.4 Method of data analysis 24

CHAPTER FOUR 26

DATA ANALYSIS AND DISCUSSION OF FINDINGS 26

4.1 Questionnaire distribution and analysis 26

4.2       Demographics of sample 26

4.3       Test of Hypotheses 36

4.3.1     Testing hypothesis one 36

4.3.1.1  Test Statistics 37

4.3.1.2 Computation of test statistic 38

4.3.2 Testing hypothesis two 41

4.3.2.1 Computation of test statistic 41

4.4    Discussion of findings 45

4.4.1  Relationship between pricing strategy and consumer perception 45

4.4.2 Impact of pricing strategies of both organizations on the behaviour 46

4.4.3 Impact of pricing strategies on organizational profitability 46

CHAPTER FIVE 47

SUMMARY, CONCLUSION AND RECOMMENDATIONS 47

5.1  Summary of findings 47

5.2 Conclusion 48

5.3 Recommendations 49

5.4 Limitations 49

REFERENCES 51

APPENDIX 2 53