| dc.description.abstract | This study sought to investigate the factors affecting pricing strategies of selected
consumer goods in the retail market. The study was limited to supermarkets located in
Nairobi, and had two objectives, namely
1. To identify the factors that affect pricing strategies.
2. To analyze how prices vary with the age, size and the perceived consumer
buying behaviour.
To achieve the objectives, a semi-structured and undisguised questionnaire was
developed in order to obtain data to fulfill the first objective, while price variations of four
selected consumer goods were observed over the study period for all the 22 supermarkets
studied, in order to get data for the second objective. The basis for selecting the consumer
goods were their relative availability and variability, so that the four were those with the
highest availability and variability, from an initial ten items.
The supermarkets were categorised on the basis of three factors, namely the age,
size and location, in order to permit comparisons along these lines.
Results indicated that competition was the most important factor affecting pricing
strategies, followed by handling and selling costs, and demand consideration, respectively.
The importance of these factors was also found to vary according
to the age. size and location of the supermarket. Although supermarkets were found to he
sensitive to the perceived consumer buying behaviour as during special occasions such as
christmas. they concentrated more on satisfying the anticipated high demand rather than
adjusting the prices. although special offers were quite common.
The study also found that most of the known pricing strategies are applied at
varying degrees among the supermarkets. depending on their age. size orlocation.
Prices of the consumer goods studied were found to vary according to the age. size
and location of the supermarkets. and in particular. it was established that
Prices of small supermarkets tended to be slightly higher than those pf large
supermarkets.
Prices of young supermarkets tended to he slightly lower than those of older
supermarkets.
Prices of supermarkets in the city centre were found to be significantly lower than
those of supermarkets in Westlands and lIurlingham.
These findings thus lead to the conclusion that prices are directly proportional to
the age, and inversely proportional to the size of the supermarket. | en |
