- The Complete Research Material is averagely 52 pages long and it is in Ms Word Format, it has 1-5 Chapters.
- Major Attributes are Abstract, All Chapters, Figures, Appendix, References.
- Study Level: BTech, BSc, BEng, BA, HND, ND or NCE.
- Full Access Fee: ₦6,000
Get the complete project »
CHAPTER ONE
INTRODUCTION
For any organization that is involved in the production of goods and rendering of services, after answering the question what to produce, and who to produce for, there is need to answer the question how much will our potential customers be willing to pay for the good? This difficulty of price fixture and the other various intervening variables such as cost, competitors price, demand, political factors, environmental factors, etc involved in fixing price for goods and services, has posed a sense of concern to most small and medium enterprises in Nigeria. This work is aimed at finding an answer to some probing questions in the mind of manufacturers and managers of small and medium enterprises on how to price effectively combining all the various factors influencing pricing, as well as meeting the organizational overall objective, which is profit maximization.
Pricing decision is a crucial decision every organization has to make, because this will eventually affect their corporate objectives, either directly or indirectly (Monroe 2003:8). For every business entity, irrespective of their line of business and objective, cost minimization and profit maximization is a general factor to be considered and for non-profit making organizations, there will always be the need to reduce cost at all means and to maximize output. A business whether small or big, simple or complex, private or public, is created to provide competitive prices (Ayozie 2008:10). According to Hilton (2005:634), setting the price for an organization’s product or service is one of the most crucial decisions a manager faces, and one of the most difficult, due to the number of factors that must be considered. Some of the factors that influence pricing decision are demand, competitors, cost, political, environmental, legal and image-related issues. Horngren, et al (1996:428), buttresses this point by stating that managers are frequently faced with decisions on pricing and profitability of their products.
Some of the objectives of business enterprises vary from maximization of profit, minimization of cost, maximization of shareholders fund, becoming a market leader, etc. From the various objectives of business organizations, the primary objective of any business enterprise is to maximize profit and minimize cost, except for charity organizations that are set up primarily not to make profit, but there will be need to minimize cost by all means, therefore the need to set prices, which therefore connotes that pricing decision arises in virtually all types of organizations, irrespective of their level of activities. According to Lovelock & Wirtz (2004:151), the principal approach to an effective pricing strategy is to manage revenues in ways that support the firms’ profitability objectives, which leads to the question; how well can we complement the various factors that influence pricing decision, to achieve our overall objective, which is maximization of profit.
Small scale business in Nigeria constitute over 80 percent of all registered companies, occupying positions in agro based and allied industries, rubber based, leather shoes industries, chemical, electronics, general merchandising, restaurants, dress making, hair dress making, cane-chairs, leather products, pomade and toiletries, animal feeds and husbandry, printing, etc. They have accounted for a large percentage of all businesses and a favourable percentage of the nations’ gross national product. This fact is more relevant in the developed countries of Great Britain and United Kingdom where proper accounting system is kept (Ayozie 2008:10-15).
AIM OF STUDY
This study is aimed at evaluating the various factors that influence pricing decision and how well an organization can manage these factors effectively to maximize profit. The study focuses on the pricing policy decision of Small and Medium Enterprises in Nigeria, with a study of some selected Small and Medium Enterprises in Ogun, and Lagos State Nigeria. There are various definitions to the word Small and Medium Enterprises (SMEs), but for the sake of this study, SMEs are business enterprises with a maximum manpower of 300 workers, and Working Capital of N10million. This research work is divided into five sections, with the first section introducing the research work, section two reviews some of the related literatures that will help in the theoretical and conceptual analysis of the problem at hand, section three looks at the research methodology adopted as well as the statement of the research design. Section four of the work looks at the data analysis and presentation, while section five gives a brief summary of the research work and gives a concluding remark on the research work.
STATEMENT OF RESEARCH PROBLEM.
Decision is a choice between alternatives, having all the necessary information about the various alternatives available. Pricing decision is a decision that must be taken carefully, because of its nature and its effect on the overall goals and objectives of the organization, which is mainly profit maximization. Hilton (2005:633) reporting on the interview held with President Winston Darrough III, stated that the President noted that pricing is a sticky wicket, in which you keep an eye on the costs as well as the competitors. The competition will always be driving the price down, and there will be need to respond appropriately. You can’t sell the same product for more than the other bloke does. But at the same time, there’s need to cover costs of production. Nobody can indefinitely sell a product at less than its cost of production, because it doesn’t work that way. The stage of the product in its life cycle will determine the pricing decision for the product at hand. For new products, the target costing approach is used, in which the company estimates what they think consumers will pay for a new product, and then back out the cost that is in excess of it in order to sell at that price. This aspect of an organizations activity (pricing decision), is handled with mere guess work by most SMEs in Nigeria, with little consideration for some factors, which thereafter influences their decision making without weighing the cost and benefit of the decision made on pricing. This paper is aimed at looking at the various factors that influences pricing decisions, their effect on price and what the end result will be on profit appropriately.
OBJECTIVES OF THE STUDY.
At the end of the work, it is expected that the following objectives, which serves as the driving force behind the topic at hand will be achieved: evaluate the role of organizational objective in the pricing decision process, evaluate some of the factors that influence the product pricing policy an organization will adopt, evaluate the role the price of similar products (competition) on the pricing decision of an organization, evaluate the role the price of similar products on the attainment of the organizational objective.
RESEARCH HYPOTHESIS
The hypotheses below will be tested and conclusions drawn from the outcome.
H1: The change in price of a product has a significant impact on the organizational objective
H2: Pricing decision is dependent on the price of similar products
H3: The price of similar goods affects the attainment of organizational objective.
PURPOSE OF STUDY
Pricing will be looked at from the accountants’ point of view, which looks at how a relationship can be established between price and the various factors that affect it. This paper is structured such in a way that section two that follows introduction presents the literature review and the theoretical framework. Methodology is section three, section four presents the survey results and the discussion of the results, while section five is conclusion and implications.
You either get what you want or your money back. T&C Apply
You can find more project topics easily, just search
-
SIMILAR ECONOMICS FINAL YEAR PROJECT RESEARCH TOPICS
-
1. IMPACT OF TRADE LIBERALIZATION AND INSTITUTIONS ON ECONOMIC GROWTH IN SELECTED SUB-SAHARAN AFRICAN COUNTRIES.
» CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY According to North (1991), institutions are the humanly devised constraints that structure and co...Continue Reading »Item Type & Format: Project Material - Ms Word | 245 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
2. REGENERATING ECONOMIC GROWTH THROUGH MARINE SECTOR
» ABSTRACT The study investigates the importance of Ocean shipment on Nigeria’s economic development. Ocean shipment trade, in thousands of tonnes...Continue Reading »Item Type & Format: Project Material - Ms Word | 52 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
3. THE ROLE OF THE NIGERIAN STOCK EXCHANGE ON CAPITAL FORMATION (1980-2011)
» ABSTRACT This study was carried out to determine the effect of stock market on capital formation in Nigeria. The variables included in the model were,...Continue Reading »Item Type & Format: Project Material - Ms Word | 50 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
4. IMPACT OF FOREIGN DIRECT INVESTMENT ON THE ECONOMIC GROWTH IN NIGERIA (1980-2015)
» CHAPTER ONE INTRODUCTION 1.1 Background of the Study Various classifications have been made on Foreign Direct Investment (FDI). For instance, FDI has ...Continue Reading »Item Type & Format: Project Material - Ms Word | 52 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
5. THE EFFECT OF NAIRA DEVALUATION ON SMALL SCALE ENTERPRISES AND THE ECONOMY ( A CASE STUDY OF SMEs IN LAGOS)
» CHAPTER ONE INTRODUCTION 1.1.BACKGROUND OF THE STUDY Naira devaluation simply means the official lowering of the value of the Naira within a fixed exc...Continue Reading »Item Type & Format: Project Material - Ms Word | 65 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
6. THE IMPACT OF “CHANGE MANTRA ON ECONOMIC DEVELOPMENT OF NIGERIA
» NIGERIA CHAPTER ONE INTRODUCTION BACKGROUND OF STUDY It is now a glaring fact that so much is happening in the Nigerian polity, especially in relation...Continue Reading »Item Type & Format: Project Material - Ms Word | 59 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
7. THE ROLE OF COMMERCIAL BANK IN ECONOMIC DEVELOPMENT OF NIGERIA
» CHAPTER ONE INTRODUCTION 1.1. BACKGROUND OF STUDY Commercial banks play an important role in economic development of developing countries. Economic de...Continue Reading »Item Type & Format: Project Material - Ms Word | 64 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
8. A Critical Assessment Of The Survival Strategies Of Deposit Money Banks In A Depressed Economy With Special Reference To The First Bank Of Nigeria Plc
» ABSTRACTBanking is in the midst of change that has arisen due to economic depression. As government seek to improve economic efficiency and better all...Continue Reading »Item Type & Format: Project Material - Ms Word | 56 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
9. THE ROLE OF STOCK MARKET IN THE GROWTH OF NIGERIAN ECONOMY (1980 – 2010)
» ABSTRACT This study attempts to investigate the Role of the Stock Market in the Growth of the Nigerian Economy spanning through 1980 – 2010. The bro...Continue Reading »Item Type & Format: Project Material - Ms Word | 50 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
10. MANAGEMENT OF FOREIGN EXCHANGE BY CENTRAL BANK OF NIGERIA: PROBLEMS AND PROSPECTS
» ABSTRACT This project deals with foreign exchange management in Nigerian by the central bank of Nigeria (CBN). The need to manage foreign exchange bec...Continue Reading »Item Type & Format: Project Material - Ms Word | 52 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT