THE IMPACT OF PRICING STRATEGY ON CUSTOMER LOYALTY IN A PRODUCTION COMPANIES (A CASE STUDY OF HI-MALT AND 7UP BOTTLING COMPANY, KADUNA)

Abdullahi Ndagi Yakubu; Salihu Shehu & Nwokenkwo Ben Olubunmi

Department of Marketing

The Federal Polytechnic, Bida, Niger State

Emailo: ndyakubu1976@yahoo.com; Shehumunir2005@yahoo.com & bunminwokenkwo@gmail.com  

ABSTRACT

One of the most crucial decision management must make in business is establishing a selling price for its product, but this is quiet unfortunately that many firms are still not paying attention to price of their products causing a lots of firms to loose customers to competitors. This study sought to find out the pricing strategies adopted by companies and its impact on customer’s loyalty. This study used the descriptive survey design, the use of this design facilitated an in depth analysis of the role of pricing strategies on customer loyalty. The population of this study was the hi-malt and 7up and coca cola bottling company with a population of over 1000 and sample size of 100 in Kaduna metropolis. The collected data was sorted edited and coded before the analysis, using non parametric, percentage pie chart and chi square to test the Hypotheses, the finding confirmed that, price has impact on the customer loyalty. The researcher recommended that company should endeavor to compare price of products with that of competitors before setting price compare prices.

Keywords: Pricing Strategy, Customer and Customer Loyalty