Science Journal of Business and Management
Volume 3, Issue 3, June 2015, Pages: 65-70
Received: Apr. 15, 2015;
Accepted: May 1, 2015;
Published: May 13, 2015
Views 3366 Downloads 100
David Mwangi Kungu, Department of Development studies, School of Human Resource Development, Moi University, Eldoret, Kenya
Kisilu Kitainge, Technology Education Department, School of Education, University of Eldoret, Eldoret, Kenya
Jacob Omache, G4S Security Services Ltd, Nakuru Branch, Nakuru, Kenya
The pricing of any product in the market is an important determinant of the extent to which customers and competitors respond to it. It is also expected that market share of a company’s products may be determined by the pricing strategies adopted and implemented. The purpose of this study was therefore to evaluate the effects of pricing on market share of security firms in Kenya, with reference to Nakuru Municipality. The study employed cross-sectional survey method. The target population was 2,500 respondents comprising of customers to security firms. From the target population, a sample of 300 (12%) respondents was picked; using stratified sampling and simple random sampling techniques. The data were collected using structured questionnaires and analyzed using percentages and frequencies and presented in form of tables and charts. The study found out that price had a bearing on the market share of security firms since customers assessed the utility they got from the product/service based on benefits received and sacrifices made. Therefore, if consumers perceived price to be high, they could purchase competitive brands or substitute products/services leading to a loss of sales (market share). The study recommends that clear pricing structure/policy that takes into consideration a number of factors should be developed to harmonize the customer perception about service quality and the firm’s anticipated profitability level.
David Mwangi Kungu,
Pricing and its Effects on Market Share of Security Firms in Kenya, Science Journal of Business and Management.
Vol. 3, No. 3,
2015, pp. 65-70.
Arnould, E., Price L., & Zinkhan, G. (2004). Consumers. McGraw Hill, U.S.A.
Baker, J.M. (2000). Marketing Strategy & Management Palgrave Macmillan: U.S.A
Berkowitz, N., Kerin, A., & Rudelius, W. (1989). Marketing. Richard D. Irwin: Homewood, U. S.
Bingham, G.F Jr., Gomes, R., & Knowles A.P. (2005). Business Marketing. McGraw Hill/Irwin: U.S.A
Churchill, G. A Jr. G. (1991). Marketing Research, Methodology Foundations. Dryden Press: Fort Worth
Creswell, J.W. (2008). Research Design: Quantitative, Qualitative Research and Mixed Research Approaches (3rded.). Thousands Oak, CA: Sage.
Gosling, M (2008). Amor Group: making the World Safer. G4S International Journal 4-6.
Hutt, D.M., & Speh, W.T. (2007). Business Marketing Management: B2B.Thomson Higher Education: U.S.A.
Jobber, D. (2007). Principles and Practices of Marketing Mc Graw-Hill: London, U.K
Kerin, A., Berkowitz, N., Hartley, W. & Rudelius, W.(2003). Marketing McGraw-Hill: New York. U.S.A
Kenya Association of Security Companies-KASC (2009), Performance of Security Companies, Annual news letter, Unity Press. Nairobi
Kotler, P. (1988). Marketing Management Prentice Hall: New Delhi, India.
Kotler, P. & Amstrong, G. (1994). Principles of Marketing. Prentice Hall: New Delhi, India.
Kotler, P., Fahey, L., and Jatusripitak, B (1985). The New Competition. Prentice Hall: New Delhi, India.
Mohar, J. (2001). Marketing of High Technology Products and Innovations. McGraw Hill, New York.
Monroe, B.K., & Cox, J.L. (2001). Pricing Practices That Endanger Profits. Marketing Management Journal, Sept. /Oct. 2001 pp. 42-46
Mugenda, O.M., & Mugenda, G.A. (2003).Research Methods. ACTS Press: Nairobi.
Mwathi, G.R (2009).Always be prepared for the Worst. Management Journal of Kenya Institute of Management 20-23.
Oliver, L.R (1973). Behavioral Perspective on Consumers. McGraw Hill, New York
Paul, J.P., & Donnelly J. (2007). Marketing Management: Knowledge and Skills. McGraw Hill/Irwin: U.S.A.
Pearce II & J.A Robinson, Jr. R.B. (1991). Strategic Management. Richard D. Irwin: Homewood, U.S.A
Perreault, D.W. Jr., & McCarthy, E.J. (1996). Basic Marketing: A Global Managerial- Approach McGraw Hill, U.S.A.
Saxena, R. (2006). Marketing Management McGraw Hill, New Delhi, India
Terpstra, V., & Sarathy, R. (1991). International Marketing Dryden Press: Fort Worth.