PRICING STRATEGY AND ITS EFFECT ON SALES PERFORMANCE A STUDY OF CHEMLAP NIGERIA LIMITED, ABA.

ABSTRACT

The main purpose of this study is to analyze the pricing strategy and its effect on sales performance in Abia State, with special emphasis on resin product made by Chemlap Nigeria Limited. The objectives of the study among others are to: Determine whether the companies have any pricing strategy. Determine how such pricing strategy is being used in these companies. Evaluate the effect of such pricing strategy on the sales performance of the companies. Identify factors that militate against effective pricing strategy. The research will have in state the objectives to be accomplished through the study. The extent to which the study meets the objective determines the success of the project. The method of data collection in the envisaged study will involve face to face distribution of copies of questionnaire to the staff of the case organization, the researcher will give the copies and allow one week filling period after which he will collect then fill out copies for analysis. Descriptive statistics, multiple regression analysis will be used to analyze the data collected while five point likert scale involving mean and ranking will be used in testing the hypothesis.The analysis of data will involve the use of descriptive analysis.  In this the researcher will descriptively analyze the flow of responses by the target respondents, and percentage scores will be assigned to the responses.  Data presentation will involve the use of the respondents flow table and the research question will be validated.

TABLE OF CONTENTS

Title page ﾿ i

Topic ﾿ ii

Declaration ﾿ iii

Certification ﾿ iv

Dedication ﾿ v

Acknowledgement ﾿ vi

List of Tables ﾿ vii

Table of content ﾿ viii

Abstract ﾿ xi

CHAPTER ONE

INTRODUCTION ﾿ 1

1.0 ﾿ Background of the Study ﾿ 1

1.1 ﾿ Statement of the Problem ﾿ 4

1.2 ﾿ Objectives of the Study ﾿ 5

1.3 ﾿ Research Questions ﾿ 6

1.4 ﾿ Research Hypothesis ﾿ 6

1.5 ﾿ Scope of the Study ﾿ 7

1.6 ﾿ Significance of the Study ﾿ ﾿ 8

1.7 ﾿ Limitation of the Study ﾿ 8

1.8 ﾿ Definition of Terms ﾿ 9

CHAPTER TWO

REVIEW OF LITERATURE ﾿ 11

2.0 ﾿ An Overview of Price ﾿ 11

2.1 ﾿ Types of Pricing Strategy ﾿ 13 ﾿  

2.1.1 ﾿ Price Stabilization ﾿ 13

2.1.2 ﾿ Range Pricing ﾿ 13

2.1.3 ﾿ Perceived Value Pricing ﾿ ﾿ 14 ﾿

2.1.4 ﾿ Quality Pricing ﾿ 14 ﾿

2.1.5 ﾿ Resale Pricing Maintenance ﾿ 14 ﾿

2.1.6 ﾿ Penetration Pricing ﾿ 15

2.1.7 ﾿ Cost-Based Pricing Strategies ﾿ 15

2.1.8 ﾿ Market-Based Pricing Strategies ﾿ 17

2.1.9 ﾿ Economic Pricing ﾿ 17

2.1.10 ﾿ Consumer Behaviour Pricing ﾿ 20

2.1.11 ﾿ Synthesis Pricing Strategies ﾿ 24

2.1.12 ﾿ Improved Multi Step Synthesis Pricing ﾿ 26

2.2 ﾿ Pricing Decisions ﾿ 26

2.3 ﾿ Pricing Objectives ﾿ 28

2.4 ﾿ Factors Affecting the Price of Products ﾿ 30

2.5 ﾿ Internal Influences on Price ﾿ 35

2.6 ﾿ Brief Historical Background of the Resin 

Manufacturing Companies ﾿ 35 

﾿ ﾿

CHAPTER THREE

﾿ METHODOLOGY ﾿ 37

3.0 ﾿ Research Design ﾿ 37

3.1 ﾿ Area of the Study ﾿ 37 ﾿

3.2 ﾿ Population of the Study ﾿ 38

3.3 ﾿ Sampling Technique and Determination of Sample Size ﾿ 38 ﾿

3.4 ﾿ Method of Data Collection ﾿ 38 ﾿

3.5 ﾿ Method of Data Analysis ﾿ 39 ﾿

3.5.1 ﾿ Model Specification ﾿ 40 

3.6 ﾿ Reliability of Data ﾿ 42 

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS ﾿ 43

4.0 ﾿ Introduction ﾿ 43

4.1 ﾿ Response Rate of the Total Questionnaire Distributed ﾿ 43

4.2 ﾿ The Identified Pricing Strategies Adopted by the Firms ﾿ 44

4.3 ﾿ Based on the Usage of the Adopted Pricing Strategies 

by the Firms ﾿ 45

4.4 ﾿ The Effect of such Pricing Strategy on 

Sales Performance of the Company ﾿ 46

4.5 ﾿ Factors That Militates Against Effective Pricing Strategy ﾿ 49  

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION ﾿ 51 ﾿

5.0 ﾿ Summary of Findings ﾿ 51 ﾿

5.1 ﾿ Conclusion ﾿ 52

5.2 ﾿ Recommendations ﾿ 53

5.3 ﾿ Recommendation ﾿ 5

REFERENCES

QUESTIONNAIRE