PRICING STRATEGY CONSIDERATIONS AND SALES PERFORMANCE OF FOOD AND BEVERAGE FIRMS IN RIVERS STATE

Abstract

The paper investigated the relationship between pricing strategy considerations and sales performance of food and beverage firms in Port Harcourt. Two (2) objectives, two research questions and two research hypotheses were formulated. The research adopted correlational survey design; the population of the study comprised of 25 Food and Beverages Firms in Port Harcourt, Rivers State gotten from www.directory.org.ng. The paper adopted a census study and studied the entire firms with a focus on the middle and low level managers. To generate data for the study, the questionnaire was distributed in the frame of four (4) copies per firm. A total of one hundred (100) copies of the questionnaire were distributed. The reliability of the instrument was determined using the Cronbach's alpha test instrument with the aid of Statistical Package for Social Sciences (SPSS) version 23 and it stood at 0.88 higher than the benchmark of 0.7. The data collected for this study were analyzed through descriptive and inferential statistics. The Spearman Rank-Order Correlation Technique was employed to test the various hypotheses formulated through the aid of Statistical Package for Social Sciences (SPSS). The result of the test of hypotheses shows that pricing strategy considerations via its dimensions showed a strong, positive and significant relationship with sales performance. The study therefore concluded that; effective pricing strategy is a panacea for improving sales performance. The study recommended that: food and beverage firms in Port Harcourt should adopt value-based pricing strategy as it would enhance customer retention and also they should adopt competition-based pricing strategy as it would increase their sales performance.