EFFECT OF PRICING STRATEGY ON ORGANIZATIONAL PROFITABILITY (A CASE STUDY OF MTN TELECOMMUNICATION COMPANY)

This study examines the effect of pricing strategy on organizational profitability.The main objective of this study is to establish the effect of pricing strategy on organizational profitability using MTN Telecommunication Company as a case study. The study specific objectives were; to investigate the effect of pricing strategy on organizational productivity, organizational growth and organizational size. All relevant literatures were utilized. The study used a descriptive survey research design. The study targeted at least 80 employees of MTN Telecommunication Company. A sample size of 67 respondents was utilized which was estimated by Taro Yamane’s statistical formula. A simple random sampling technique was adopted for the study. The researcher used primary method of data collection by distribution of questionnaires. The questionnaire and the accompanying cover letter assuring confidentiality were delivered to the MTN Telecommunication Company. Statistical package for the social sciences (SPSS) version 20.0 was used to analyze the data through descriptive statistics and information presented in statistical forms. A correlation co-efficient was also used to analyze the relationship between the dependent variable and independent variable. The study reveals that there is a significant effect between pricing strategy and organizational profitability, organizational productivity, organizational growth and organizational size have simultaneous partial effect on pricing strategy. The study recommends that organizations to ensure that all price on products should cater for the cost of the products. Cost of labor and differentiation of brand should be inclusive to enable profitability to be realized. Due to consideration of the cost involved it ease to set the margin of profit to be made by the organization.