IJEBM | Effect of pricing strategies on customer retention among small scale metal mechanics and fabrication: A case study of Mwanza City-Tanzania

Indexing and Abstracting

Effect of pricing strategies on customer retention among small scale metal mechanics and fabrication: A case study of Mwanza City-Tanzania

Florence Joshua Osano , Deusdedita Lutego

International Journal of Engineering, Business And Management(IJEBM), Vol-6,Issue-1, January - February 2022, Pages 18-28 , 10.22161/ijebm.6.1.3

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Article Info: Received: 02 Dec 2021; Received in revised form: 20 Jan 2022; Accepted: 30 Jan 2022; Available online: 11 Feb 2022

Abstract:

Consumer buying behavior has become polarized phenomenon and this impact their on price decisions as well as well as performance of the metal fabricators or sellers. Thispapersought to investigate the effect of pricing strategies on customer retention among small Scale Metals mechanics and Fabricators in Mwanza City, Tanzania. This was guided by three specific objectives which were to: examine the effects of value-based pricing strategy on customer retention among small scale metal mechanics and fabricators, determine the effects of competition-based pricing strategy on customer retention among small scale metal mechanics and fabricator and determine the effects of cost-based pricing strategy on customersâ€™ retention among small scale metal mechanics and fabricator. It adopted a mixed approach method .With a target population of 570 small scale metalwork operators, 228 responded to the questionnaire and interviewed seven owners/operators. A multiple regression analysis was utilized to test the relationship between independent and dependent variables. The study found that the adoption of a value-based pricing practice, competition-based pricing practice, and cost -based pricing practice by management has significant impact to small scale metalwork operators. In particular, the study revealed that the use of value-based pricing, competition-based pricing and cost-based pricing strategies has enormous contribution on customer retention among small scale metal mechanics and fabricators in Mwanza City. It was found that the small scale mechanics and fabricators use these pricing strategies interchangeably depending on the market situation.

Keywords:

value-based pricing, competition-based pricing, cost-based pricing and customer retention.

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