THE EFFECTS OF PRICING STRATEGIES ON ORGANISATIONALPERFORMANCE IN KENYA

(A Case study of Airtel Retail Centre in Nairobi)

IRA YA ISAIAH lVIAGAIGA

L1123/25678/2012 .

A Research Project Submitted In Partial Fulfillment For The Requirement Of TheAward Of Diploma In Business Management For The University Of Nairobi

November 2013

DECLARATION

I declare that this is my original work and has never been submitted for examination and

award in any other university

SIGN: _~_. _

MR. IRAYA ISAIAH MAGAIGA

SUPERVISOR

This research proposal has been submitted for examination by my approval as a

university supervisor

SIGN DATE:

MR. MICHEAL. KIAMA

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ABSTRACTSetting the optimum price is one of the most difficult decisions managers ever make.

Most companies are so bad at it that they leave money on the table. Pricing strategies are

done in a way that it merges those of the competitors or better still a little bit lower than

that of the competitors. Organizations have been facing high competition from other

organizations offering the same product or services by either offering them at a high or

low price which in turn affects other organizations performance. The purpose of this

study was to determine the effect of pricing strategies on organizational performance in

order to come up with better ways to help in the organization to use in order to improve

on their performance. This study is of great significance to a number of interested

parties. To start with, the management learned on the shortcomings of the current pricing

strategy and adapt to a more effective pricing strategy, among other beneficiaries.

Pricing is part of the marketing mix of both products and services and it can be changed

very quickly. After the marketing and pricing objectives have been decided, pricing has

to then consider costs, competition, customers and controls. In the long-run, prices must

at least match all costs if profits are to be made, but sometimes exceeding marginal costs

and relevant costs will be sufficient.

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