Effect of Pricing Strategy on Organization Performance: Evidence from Ethiopia’s Brewery Industry
https://doi.org/10.26794/2587-5671-2024-28-3-84-93
Abstract
The purpose of this research was to assess the practise and effect of pricing strategy on the brewery company’s performance. To achieve the study’s objective, the researcher applied both descriptive and explanatory research designs using a mixed-methods approach. For the research, both first-hand and second-hand sources of information were gathered. This research involved 310 employees of Ethiopia’s brewery companies who completed questionnaires to obtain data. The study used simple random sampling. Using SPSS version 21.00, descriptive statistical methods, such as mean and standard deviation, and inferential statistical techniques, such as correlation and multiple regression analysis, were used to analyse the questionnaire data. According to the findings of this research, pricing strategy has a statistically significant and strong positive relationship with organisational performance. Moreover, the pricing strategy explains 74.5 percent of the variances in organisational performance in a substantial manner. The study will help firms establish an effective pricing strategy to increase performance and compete in the marketplace. Dealers should base their price selections on this context, set fair and competitive rates, and clearly explain these charges to consumers. The company might use price promotion strategies like discounts, bonuses, and bundles to increase the number of units sold to customers. To expand market share and sales volume, it is also necessary to use a pricing penetration strategy.
About the Authors
K. W. Gebremicael
Adigrat University; Andhra University
Ethiopia
Competing Interests:
Ethiopia
Kidanemaryam W. Gebremicael — PhD, Assoc. Prof., Department of Marketing, College of Business and Economicsa; Research Scholar, Department of Commerce and Management Studies
Adigrat; Visakhapatnam, India
Competing Interests:
The authors have no conflicts of interest to declare.
K. V. Ramana Murthy
Andhra University
India
Competing Interests:
India
K.V. Ramana Murthy — PhD, Assoic. Prof, Research Director, Department of Commerce and Management Studies
Visakhapatnam
Competing Interests:
The authors have no conflicts of interest to declare
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For citations:
Gebremicael K.W., Ramana Murthy K.V. Effect of Pricing Strategy on Organization Performance: Evidence from Ethiopia’s Brewery Industry. Finance: Theory and Practice. 2024;28(3):84-93. https://doi.org/10.26794/2587-5671-2024-28-3-84-93
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