Pricing and its Effects on Market Share of Security Firms in Kenya

David Mwangi Kungu; Kisilu Kitainge; Jacob Omache

doi:doi:10.11648/j.sjbm.20150303.11

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Pricing and its Effects on Market Share of Security Firms in Kenya

David Mwangi Kungu, Kisilu Kitainge, Jacob Omache

Published in Science Journal of Business and Management (Volume 3, Issue 3)

Received: 15 April 2015 Accepted: 1 May 2015 Published: 13 May 2015

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Abstract

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.

Published in	Science Journal of Business and Management (Volume 3, Issue 3)
DOI	10.11648/j.sjbm.20150303.11
Page(s)	65-70
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2015. Published by Science Publishing Group

Keywords

Market Share, Price, Pricing Strategies, Flexibility

References

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APA Style

David Mwangi Kungu, Kisilu Kitainge, Jacob Omache. (2015). Pricing and its Effects on Market Share of Security Firms in Kenya. Science Journal of Business and Management, 3(3), 65-70. https://doi.org/10.11648/j.sjbm.20150303.11

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ACS Style

David Mwangi Kungu; Kisilu Kitainge; Jacob Omache. Pricing and its Effects on Market Share of Security Firms in Kenya. Sci. J. Bus. Manag. 2015, 3(3), 65-70. doi: 10.11648/j.sjbm.20150303.11

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AMA Style

David Mwangi Kungu, Kisilu Kitainge, Jacob Omache. Pricing and its Effects on Market Share of Security Firms in Kenya. Sci J Bus Manag. 2015;3(3):65-70. doi: 10.11648/j.sjbm.20150303.11

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@article{10.11648/j.sjbm.20150303.11,
  author = {David Mwangi Kungu and Kisilu Kitainge and Jacob Omache},
  title = {Pricing and its Effects on Market Share of Security Firms in Kenya},
  journal = {Science Journal of Business and Management},
  volume = {3},
  number = {3},
  pages = {65-70},
  doi = {10.11648/j.sjbm.20150303.11},
  url = {https://doi.org/10.11648/j.sjbm.20150303.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20150303.11},
  abstract = {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.},
 year = {2015}
}

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TY  - JOUR
T1  - Pricing and its Effects on Market Share of Security Firms in Kenya
AU  - David Mwangi Kungu
AU  - Kisilu Kitainge
AU  - Jacob Omache
Y1  - 2015/05/13
PY  - 2015
N1  - https://doi.org/10.11648/j.sjbm.20150303.11
DO  - 10.11648/j.sjbm.20150303.11
T2  - Science Journal of Business and Management
JF  - Science Journal of Business and Management
JO  - Science Journal of Business and Management
SP  - 65
EP  - 70
PB  - Science Publishing Group
SN  - 2331-0634
UR  - https://doi.org/10.11648/j.sjbm.20150303.11
AB  - 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.
VL  - 3
IS  - 3
ER  -

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Author Information

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

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Plain Text BibTeX RIS

APA Style

David Mwangi Kungu, Kisilu Kitainge, Jacob Omache. (2015). Pricing and its Effects on Market Share of Security Firms in Kenya. Science Journal of Business and Management, 3(3), 65-70. https://doi.org/10.11648/j.sjbm.20150303.11

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ACS Style

David Mwangi Kungu; Kisilu Kitainge; Jacob Omache. Pricing and its Effects on Market Share of Security Firms in Kenya. Sci. J. Bus. Manag. 2015, 3(3), 65-70. doi: 10.11648/j.sjbm.20150303.11

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AMA Style

David Mwangi Kungu, Kisilu Kitainge, Jacob Omache. Pricing and its Effects on Market Share of Security Firms in Kenya. Sci J Bus Manag. 2015;3(3):65-70. doi: 10.11648/j.sjbm.20150303.11

Copy | Download

@article{10.11648/j.sjbm.20150303.11,
  author = {David Mwangi Kungu and Kisilu Kitainge and Jacob Omache},
  title = {Pricing and its Effects on Market Share of Security Firms in Kenya},
  journal = {Science Journal of Business and Management},
  volume = {3},
  number = {3},
  pages = {65-70},
  doi = {10.11648/j.sjbm.20150303.11},
  url = {https://doi.org/10.11648/j.sjbm.20150303.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20150303.11},
  abstract = {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.},
 year = {2015}
}

Copy | Download

TY  - JOUR
T1  - Pricing and its Effects on Market Share of Security Firms in Kenya
AU  - David Mwangi Kungu
AU  - Kisilu Kitainge
AU  - Jacob Omache
Y1  - 2015/05/13
PY  - 2015
N1  - https://doi.org/10.11648/j.sjbm.20150303.11
DO  - 10.11648/j.sjbm.20150303.11
T2  - Science Journal of Business and Management
JF  - Science Journal of Business and Management
JO  - Science Journal of Business and Management
SP  - 65
EP  - 70
PB  - Science Publishing Group
SN  - 2331-0634
UR  - https://doi.org/10.11648/j.sjbm.20150303.11
AB  - 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.
VL  - 3
IS  - 3
ER  -

Copy | Download