ABSTRACT
The primary aim of this study is to assess the impact of pricing on
retail management in selected supermarkets in Aba. The study employed a
descriptive research design with a survey method to gather data.
The population for this study comprised customers from three
supermarkets in Aba: Royal, Queen Caves, and Veroi, totaling approximately one
thousand (1000) customers.
The sample size was determined using the one-tenth (1/10th) rule
proposed by Ezejelue and Ogwu (1988), resulting in a sample size of 100. This
rule considers one-tenth of the population a sufficient sample size for
research purposes.
Data analysis involved multiple techniques: Simple regression was used
to analyze objective two Correlation coefficient was used for objective three; Descriptive
statistics such as simple percentages, frequencies, and means were used for
objectives one, four, and five.
It was found that majority of supermarkets in the study area deal with
both consumable and non-consumable products. Also, Most supermarkets adopt
skimming pricing strategies (26%), followed by penetration pricing (20%) and
product lining strategies (10%), or a combination of these three strategies; The
most commonly sold consumable products in the supermarkets are drinks (45%),
baking products (30%), milk (15%), sweets and chewing gum (5%), and ice cream
(5%); The non-consumable products sold include kitchen utensils (65%),
electronics (15%), clothing (15%), and stationery (5%); Pricing has a
significant effect on retail management, with an F-statistic of 8.2 and a
p-value of less than 0.05, indicating statistical significance; There is a
positive relationship between pricing strategies and the profitability of the
enterprise.
The study concludes that pricing is a crucial aspect of retail
management. Efficient and effective pricing strategies are essential for ensuring
consumer satisfaction and enhancing the profitability of supermarkets. The
adoption of appropriate pricing strategies can significantly impact sales,
customer retention, and overall market performance.
Based on the findings, the following recommendations are made: Supermarket
operators should develop and implement well-planned pricing strategies that
enhance sales, profitability, and societal benefits; Supermarket operators
should adopt relationship marketing strategies to retain customers and build
long-term loyalty.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1 Background of study
1.2 Statement
of the problem
1.3 Objectives of the study
1.4 Research questions
1.5 Research hypotheses
1.6 Significance of the study
1.7 Scope
and limitation of the study
1.8 Definition
of terms
1.9 Profile of selected organization
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Overview
of pricing
2.2 Concept of retailing
2.2.1 Types of retailers
2.3 Retail management and planning
2.4 Pricing
Strategies
2.4.1 Skimming Price Strategy
2.4.2
Penetration pricing strategy
2.4.3 Product lining pricing strategy
2.5 Brief history of supermarket
2.6 Supermarket and its price management
2.7 Pricing objectives
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research design
3.2 Area of the study
3.3 Research population
3.4 Sample size/sampling
technique
3.5 Method of data collection
3.6 Method of data analysis
3.7 Model specification.
CHAPTER FOUR
RESULTS AND DISCUSSION
4.0 Introduction
4.1. Socio-demographic characteristics of the
respondents
4.3 Presentations of empirical results
CHAPTER FIVE
5.0 SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary
of findings
5.2 Conclusion
5.3 Recommendation
REFERENCES
CHAPTER ONE
INTRODUCTION
1.1 Background of study
Out of three major intermediaries in
product distribution, retailing which supermarket falls is very close to the consumers.
Their ability to get good patronage determines the sales and eventual profit
margin and even survival in business, so they put up many strategies to ensure
good patronage at all times. Such
strategies may include pricing, communications, displays and good quality products etc.
Nnadi (2009), said that monetary pricing is defined as the
value attached to the goods and services. It
is an important factor to purchase or sales as the case may be. When it is very
low may raise question on the quality
of the product and when it is very high, may reduce or stop purchase of the attached products. Hence
retailers should be careful on price placements.
According to Brite (2012), pricing is
very important to sales as it affects their business given the presence of competition in the market both in products,
and services. It -ft viewed to be very important as a powerful tool to product
purchase or .sales. Retailers should not make high price or very low price but should always be moderate.
This study aimed at determining the effect of' pricing in
retail management amongst the supermarket.
Hence the study will find out the strategies of pricing in use among the
supermarket and its effects on sales
of product.
1.2 Statement of the problem
Determining the most cost effective strategy for pricing by
any retailer is very complex to achieve.
There are indiscriminate pricing systems adopted by various supermarkets. There
exists lack of control system of
pricing that has led to the indiscriminating pricing. Adverse effect of the
supermarket pricing system on the consumers or buyers in their buying
decisions. There is the inability of
the supermarkets to adopt a general pricing system for the common good of their
customers.
Furthermore, A firms marketing objectives and cost
provide a rough indication of what it should charge for its good under rough
pricing, firms attempt to achieve increase sales gain market share, earn profit
as well as accomplish set goals. In practice, however, pricing decisions are
often made arbitrarily on the basis of cost related criteria with no or limited
pricing research to guide the firms. Thus, there are instance were businesses
or firm are not realizing their full potentials when setting prices.
1.3 Objectives of the study
The main objective of this study is to
determine the effect of pricing on the retail management, the specific objectives are:
1.
To describe the
features of supermarkets in the study area.
2.
To ascertain the
effect of pricing on retail management.
3.
To determine the
relationship between pricing strategies and profitability of enter price.
4. To examine the pricing strategies adopted by the super
markets.
5.
To examine the
common products sold by the super markets.
1.4 Research questions
In order to give the study a
direction, the following questions is put forth:
1. What are the features of super market in the study area?
2. What are the effect of pricing on retail management?
3. What are the relationship between pricing strategies and
profitability of enterprise
4. What are the pricing strategy adopted by super markets?
5 What are the common
product sold by the super markets?
1.5 Research hypotheses
The researcher states three hypotheses
that will help to give the study a base.
HO1: pricing has no significant effect on retail
management.
HO2: There is no significant relationship between pricing
strategies and profitability of enterprise.
1.6 Significance of the study
This study on completion shall be
beneficial to the business community, academic world and research students.
The business community especially the
supermarkets as it will give sense of direction in product pricing strategy and
its adoption as to decide on an acceptable one that will boast sales, increase profit and expand market share.
The students of marketing and entire
business will benefit immensely from this study as it will increase their knowledge in product pricing as a
requirement in whole and retail management and marketing management.
The future researcher and academic
scholars will have a sigh of relief as this study will serve as reference for
future research endeavours to come out with improved findings.
1.7 Scope and
limitation of the study
The study focuses on the study and
appraisal of pricing strategy as it affects retail management with special reference to supermarkets. It touches
different pricing strategies their rate of adoption and effect on buying decision or patronage in the face of stiff
competition among the supermarkets and
other retail outlets. However, this study was limited to its scope as a result
of the following constraints:
Ø The study was carried out only in Aba with selected
supermarkets. The researcher
believed that what is obtainable in
the town can be used as a reference across the country.
Ø
Pricing strategy is complex area to
study as a result of its implication in business and
buying decision.
Ø There are various logistics and physical impediment
which the study faced by was taken
material management.
1.8 Definition
of terms
Some of the terms used in this study will be explained
for clarity and easy understanding.
v
Buyer Behavior:
This features and
exhibited of consumers as they make buying decision.
v
Buying
Techniques:
These are various forms, methods and
style of buying as consumer’s moves from shop to shop, market to market in search of suitable price.
v
Price:
This is the value placed on a good or
service that will serve as exchange for the product.
v
Pricing Strategy:
This is the technique of pricing
products (goods and services).
v
Retail Management:
This is all effort put together to
ensure a successful retail business.
v
Retailing:
This is the third hierarchy in product distribution. This is
also the process of breakingbulk for easy
purchasing.
1.9 Profile of selected
organization
·
Royal Supermarket
Ltd Aba:
The supermarket is
owned by Mr. James Maduka Kazi, The retail outlet is located at 93/95
Aba-Owerri, Road Aba. The supermarket is known for selling high quality products and consumer services. They command good market
share from the dwellers of Umungasi and
Abayi sides Of Aba. The supermarket has in its payroll up to thirty staff with different educational background.
·
Queencave supermarket
ltd aba
The supermarket
is located at Aba 4 Nicholas Rd off Brass Junction Aba. The managing director Mrs.
Queen Uzuatu. The store has all sorts of goods and assortments on display. They sell high quality products and can be testifies by
level of patronage they enjoy everyday. The
supermarket has up to fifteen (15) staff in its payroll.
·
Veroi supermarket
aba
The supermarket is located at Aba-Owerri road Aba at Brass Junction
Aba. It is known to sell all sorts of goods. It is one of
the famous supermarkets located in this area of brassjunction where Abia State Polytechnic, banks (GTB & FCMB). MTN office
and others are located. Hence enjoy good patronage
from the staff of these organizations and dwellers of the area.
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