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

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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[10] Kerin, A., Berkowitz, N., Hartley, W. & Rudelius, W.(2003). Marketing McGraw-Hill: New York. U.S.A
[11] Kenya Association of Security Companies-KASC (2009), Performance of Security Companies, Annual news letter, Unity Press. Nairobi
[12] Kotler, P. (1988). Marketing Management Prentice Hall: New Delhi, India.
[13] Kotler, P. & Amstrong, G. (1994). Principles of Marketing. Prentice Hall: New Delhi, India.
[14] Kotler, P., Fahey, L., and Jatusripitak, B (1985). The New Competition. Prentice Hall: New Delhi, India.
[15] Mohar, J. (2001). Marketing of High Technology Products and Innovations. McGraw Hill, New York.
[16] Monroe, B.K., & Cox, J.L. (2001). Pricing Practices That Endanger Profits. Marketing Management Journal, Sept. /Oct. 2001 pp. 42-46
[17] Mugenda, O.M., & Mugenda, G.A. (2003).Research Methods. ACTS Press: Nairobi.
[18] Mwathi, G.R (2009).Always be prepared for the Worst. Management Journal of Kenya Institute of Management 20-23.
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[22] Perreault, D.W. Jr., & McCarthy, E.J. (1996). Basic Marketing: A Global Managerial- Approach McGraw Hill, U.S.A.
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Cite This Article
  • 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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    AU  - David Mwangi Kungu
    AU  - Kisilu Kitainge
    AU  - Jacob Omache
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    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
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    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
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Author Information
  • Department of Development studies, School of Human Resource Development, Moi University, Eldoret, Kenya

  • Technology Education Department, School of Education, University of Eldoret, Eldoret, Kenya

  • G4S Security Services Ltd, Nakuru Branch, Nakuru, Kenya

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