Influence Of Price Change On Consumption Of Fast Moving Consumer Goods: A Survey Of Fast Food Restaurants Eldoret, In Uasin Gishu County, Kenya
The study investigated the influence of price change on consumption of fast moving consumer goods, a survey of fast food restaurants Eldoret, Uasin Gishu County, Kenya. This is because price is one of the most flexible of the four elements of the marketing mix. One frequent problem is that businesses are too quick to reduce prices in order to get a sale rather than convincing buyers that their products are worth a higher price. Another common mistake is applying pricing that is too-cost oriented rather than customer-value oriented. These, among others, form the main concern of this study. The specific objectives of the study were to determine the influence of sales oriented pricing on consumption of fast food at fast food restaurants, Eldoret, to identify the influence of competition on pricing at fast food restaurants, Eldoret, to establish the influence of sales promotion on consumption of fast food at fast food restaurants, Eldoret and to assess how the quality of the products affects on consumption of fast food at fast food restaurants. The researcher employed a descriptive research design. This study was carried out at the fast food restaurants Eldoret, Uasin Gishu County. The sample population consisted of 86 employees and 160 current and past customers’. Data collection techniques included questionnaire, participatory observation and interview schedule. The data was organized, presented, analyzed and interpreted using descriptive methods of data analysis. The study concluded that it is clear that the firm sets prices to break-even on the cost of making and marketing a product or setting prices to make a target profit. The organization determines the prices at which it will break-even or make the target profit it is seeking. Based on the findings, the study recommends that there is need to apply or use more than one pricing strategy to increase sales volume in the company. The study further recommends that the hotel should continuously improve the quality of their consumer goods for fair prices as the end result. Suggestions for further research are made on factors determining pricing strategies in organizations are also recommended.