IMPACT OF PRICING POLICY ON PROFITABILITY LEVEL OF AN ORGANIZATION
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ABSTRACT
This study was intended to evaluate the impact of pricing on profitability level of an organization. This study was guided by the following objectives; to establish the efficiency and effectiveness of pricing policy in selected firms. To find out the various factors that influence pricing decisions in selected firms. To determine if pricing decision (s) can make an impact on a firm’s profit and efficiency. To investigate if profit planning (or budgeting) can result in cost reduction and increased profit performance. To make recommendation based on the findings of this study to the management of firms.
The study employed the descriptive and explanatory design; questionnaires in addition to library research were applied in order to collect data. Primary and secondary data sources were used and data was analyzed using the correlation statistical tool at 5% level of significance which was presented in frequency tables and percentage. The respondents under the study were 42 employees of the cresent spring water and winco foam ltd Awka.
The study findings revealed that pricing policy of a firm has an influence on the degree to which firm can achieve optimum profitability; based on the findings from the study, efforts should be made by entrepreneurs in ensuring a profitable and competitive pricing policy.
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