EFFECT OF THE PRICING STRATEGY ON PATRONAGE OF SELECTED FOOD MANUFACTURING COMPANIES IN THE SOUTHEAST OF NIGERIA
ABSTRACT
This study examined the effect of pricing strategy of selected food manufacturing companies in Southeast Nigeria on their patronage. Therefore, to achieve the goal of this study through previous studies identified the factors involved in the issue, variables such as price bundling, product line pricing, and demand pricing were identified. This is informed by the decline in the number of customers who patronizes these selected manufacturing companies in Southeast Nigeria. A survey research design was adopted with a sample size of 92 executive marketers (60 males, 32 females; age range 30 – 60yrs) participate in this study. The structured questionnaire was used to gather data from the field for analysis. The descriptive statistical tools used are percentages mean and mean percentages for data analysis, while chi-square (x2) was used as inferential statistics to test the formulated hypotheses. The study found a significant positive effect between key factors and patronage of the selected manufacturing companies as p< 0.05 significant level. Additionally, the price bundling have the greatest positive impact on patronage. This is followed by product line and demand pricing. The study concludes that there is a significant positive effect between key factors and patronage of selected food manufacturing companies in Southeast Nigeria. It was recommended that food manufacturing companies should integrate three key variables found in this study in their pricing strategies. Also, as much as firms should focus on communicating value to customers through prices, firms should also be on the watch for competitor’s prices and examine how much it affects purchase of their products.