IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i15p6019-d390293.html
   My bibliography  Save this article

Impact of Pricing Practice Management on Performance and Sustainability of Supermarkets in the Urban Area of Enugu State, Nigeria

Author

Listed:
  • Emmanuel Agbaeze

    (Department of Management, University of Nigeria, Nsukka 410, Enugu State, Nigeria)

  • Maureen Ngozichukwu Chiemeke

    (Department of Management, University of Nigeria, Nsukka 410, Enugu State, Nigeria)

  • Ann Ogbo

    (Department of Management, University of Nigeria, Nsukka 410, Enugu State, Nigeria)

  • Wilfred I. Ukpere

    (Department of Industrial Psychology and People Management, College of Business & Economics, University of Johannesburg, Johannesburg 2006, South Africa)

Abstract

Consumer shopping behavior is becoming increasingly polarized, which has an impact on price decisions, and the performance and sustainability of supermarkets. This study sets out to empirically determine the impact that pricing practice management has on the performance and sustainability of supermarkets in the urban area of Enugu State, Nigeria. The study explicitly attempts to ascertain the impact of value-informed pricing practice, competition-informed pricing practice, and cost-informed pricing practice on supermarkets’ performance and sustainability in urban Enugu. The paper also examines the impact of adopting three different pricing practices when the relative product advantage and/or competitive intensity are/is moderating variable(s). With a population of 100 supermarkets, 48 responded to the questionnaire. A multiple regression analysis was utilized to test the hypothesis formulated for the study. The study found that the adoption of a value-informed pricing practice, competition-informed pricing practice, and cost-informed pricing practice by management has no significant impact, negatively significant impact, and positively significant impact, respectively, on supermarkets’ performance and sustainability in urban Enugu. The study also found that the impact of the three pricing practices on performance and sustainability of supermarkets in the urban area of Enugu State, changes significantly when relative product advantage and/or competitive intensity are/is moderating variable(s). Amongst others, this study recommends that the management of supermarkets should carry out an internal and external environmental assessment of a product before deciding on the appropriate pricing practice to adopt for that product. Critical consideration should be given to the relative product advantage and the competitive intensity of the product. Moreover, the adopted pricing practice must be situated within the overall performance objective of the firm in such a way that resources are optimized, and the maximum value attained.

Suggested Citation

  • Emmanuel Agbaeze & Maureen Ngozichukwu Chiemeke & Ann Ogbo & Wilfred I. Ukpere, 2020. "Impact of Pricing Practice Management on Performance and Sustainability of Supermarkets in the Urban Area of Enugu State, Nigeria," Sustainability, MDPI, vol. 12(15), pages 1-23, July.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:15:p:6019-:d:390293
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/15/6019/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/15/6019/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Paul Ingenbleek & Marion Debruyne & Ruud T. Frambach & Theo M. M. Verhallen, 2003. "Successful New Product Pricing Practices: A Contingency Approach," Marketing Letters, Springer, vol. 14(4), pages 289-305, December.
    2. Milgrom, Paul, 1981. "An Axiomatic Characterization of Common Knowledge," Econometrica, Econometric Society, vol. 49(1), pages 219-222, January.
    3. Peter M. Noble & Thomas S. Gruca, 1999. "Industrial Pricing: Theory and Managerial Practice," Marketing Science, INFORMS, vol. 18(3), pages 435-454.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stephanie Jane S. Garduce & Kathlene Gene C. Dionio & Blessie S. Tamayo & Ramil Jr. M. Budlong & Chrisha Ellaine M. Vale, 2024. "Examining the Correlation Between Product Pricing and Sales Performance of Sari-Sari Stores," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(6), pages 2900-2918, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Florian Steinbrenner & Jana Turčínková, 2021. "Industry-Specific Factors Impeding the Implementation of Value-Based Pricing," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 7(1), pages 27-46.
    2. Martin Spann & Marc Fischer & Gerard J. Tellis, 2015. "Skimming or Penetration? Strategic Dynamic Pricing for New Products," Marketing Science, INFORMS, vol. 34(2), pages 235-249, March.
    3. Dirk Totzek & Sascha Alavi, 2010. "Professionalisierung des Preismanagements auf Business-to-Business-Märkten: Die Rolle der Marktorientierung und der Unternehmenskultur," Schmalenbach Journal of Business Research, Springer, vol. 62(5), pages 533-562, August.
    4. John Geanakoplos, 1993. "Common Knowledge," Cowles Foundation Discussion Papers 1062, Cowles Foundation for Research in Economics, Yale University.
    5. Murthy, D.N.P. & Hagmark, P.-E. & Virtanen, S., 2009. "Product variety and reliability," Reliability Engineering and System Safety, Elsevier, vol. 94(10), pages 1601-1608.
    6. Cruijssen, F. & Borm, P.E.M. & Fleuren, H.A. & Hamers, H.J.M., 2005. "Insinking : A Methodology to Exploit Synergy in Transportation," Other publications TiSEM 958be918-e7b4-4e46-9cbe-d, Tilburg University, School of Economics and Management.
    7. Roth, Alvin E & Murnighan, J Keith, 1982. "The Role of Information in Bargaining: An Experimental Study," Econometrica, Econometric Society, vol. 50(5), pages 1123-1142, September.
    8. Masahiko Aoki, 2013. "Institutions as cognitive media between strategic interactions and individual beliefs," Chapters, in: Comparative Institutional Analysis, chapter 17, pages 298-312, Edward Elgar Publishing.
    9. Yinliang (Ricky) Tan & Janice E. Carrillo, 2017. "Strategic Analysis of the Agency Model for Digital Goods," Production and Operations Management, Production and Operations Management Society, vol. 26(4), pages 724-741, April.
    10. Oseni, Musiliu O. & Pollitt, Michael G., 2017. "The prospects for smart energy prices: Observations from 50 years of residential pricing for fixed line telecoms and electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 150-160.
    11. Hinterhuber, Andreas, 2017. "Value quantification capabilities in industrial markets," Journal of Business Research, Elsevier, vol. 76(C), pages 163-178.
    12. Michael Suk-Young Chwe, 1998. "Culture, Circles, And Commercials," Rationality and Society, , vol. 10(1), pages 47-75, February.
    13. Srinivas, Sharan & Ramachandiran, Surya & Rajendran, Suchithra, 2022. "Autonomous robot-driven deliveries: A review of recent developments and future directions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 165(C).
    14. Oliver Gürtler, 2009. "On pricing and protection of complementary products," Review of Managerial Science, Springer, vol. 3(3), pages 209-223, November.
    15. Rajagopal, 2006. "Fiscal Policy and Growth: The Case of the Spanish Regions," Economic Issues Journal Articles, Economic Issues, vol. 11(1), pages 9-24, March.
    16. J. B. G. Frenk & Canan Pehlivan & Semih O. Sezer, 2019. "Order and exit decisions under non-increasing price curves for products with short life cycles," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 90(3), pages 365-397, December.
    17. Huber, Sebastian & Spinler, Stefan, 2012. "Pricing of full-service repair contracts," European Journal of Operational Research, Elsevier, vol. 222(1), pages 113-121.
    18. Markus Christen, 2005. "Research Note---Cost Uncertainty Is Bliss: The Effect of Competition on the Acquisition of Cost Information for Pricing New Products," Management Science, INFORMS, vol. 51(4), pages 668-676, April.
    19. Cyril Hédoin, 2016. "Community-Based Reasoning in Games: Salience, Rule-Following, and Counterfactuals," Games, MDPI, vol. 7(4), pages 1-17, November.
    20. Stephan M. Liozu, 2017. "Value-based pricing special issue: Editorial," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 16(1), pages 1-3, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:15:p:6019-:d:390293. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.