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Factors Influencing Pricing Decision: Evidence from Non-Financial Firms in Nigeria

Author

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  • Luqman Olawale

    (Olabisi Onabanjo University)

  • Okewale Joel

    (Olabisi Onabanjo University)

Abstract

This study examines the significant factors influencing pricing decision in Nigeria. The study is based on the appraisal of the factors that influence pricing decision using 100 non-financial companies listed on the Nigeria Stock Exchange (NSE) in 2013. The cross sectional data was obtained from annual reports of the sampled firms which were analyzed based on OrdinaryRegression model. The results revealed that cost of sales has an insignificant positive effect on pricing policy, while company’s objective and consumer perception has significant positive relationship on pricing policy. On the external determinants, market demand and availability of close substitute has a significant negative effect on pricing policy while macroeconomic trend and market segment has insignificant negative effect on pricing policy. This study therefore suggests among others that, effort should be made on reducing cost of production in order to maximize profit.

Suggested Citation

  • Luqman Olawale & Okewale Joel, 2017. "Factors Influencing Pricing Decision: Evidence from Non-Financial Firms in Nigeria," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 13(1), pages 157-172, February.
    • Handle: RePEc:dug:actaec:y:2017:i:1:p:157-172
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    File URL: http://journals.univ-danubius.ro/index.php/oeconomica/article/view/3707/3852
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    References listed on IDEAS

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    Cited by:

    1. Yin Yu Lum Gousgounis & Michael Neubert, 2020. "Price-setting strategies and practice for medical devices used by consumers," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 19(3), pages 218-226, June.

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