EFFECT OF PRICING POLICIES ON SALES PERFORMANCE (A STUDY OF SELECTED PURE WATER FACTORIES IN ADO-EKITI)

ABSTRACT This study examined the effect of pricing policies on sales performance using some selected pure water factoriesin Ado-Ekiti. The objectives of this study include; to identify the effect of price skimming on customer retention, to investigate the effect of penetration strategy on the firm’s market share and to determine the impact of market parity pricing on sales volume. The study employed survey design and researcher adopt the population of (61) respondents among the management staff and senior staff of the selected pure water factories in Ado-Ekiti. A well-constructed questionnaire, which was adjudged valid and reliable, was used for collection of data from the respondents. The data obtained through the administration of the questionnaires was analyzed using descriptive and inferential statistics. Descriptive statistics was used to analyzed the demographic variables while simple linear regression was used to test the hypothesis. The study concluded that concluded that price skimming customers known as early adopter which will pay steeper prices for a cutting edge product if its marketed as a must have, whether the price accurately reflects the value or not. The study also concluded that penetration pricing is a marketing strategy used by businesses to attract customers to new product or service by offering lower price during its initial offering. Researcher recommends that; that strong policies on skimming pricing policies should be effectively adopted by the factories so as to enhance the quality of service delivery in retaining their valuable customers.