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The Role Of Competition On The Pricing Decision Of An Organisation And The Attainment Of The Organisational Objective

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Author Info

  • Imoleayo Obigbemi

    ()
    (Covenant University, Ota Ogun State, Nigeria)

Abstract

Pricing decision has been a crucial decision made by all business enterprises at all levels and has posed a great challenge for Small and Medium Enterprises in Nigeria. This research work treats the role of competition on the pricing decision of an organisation and the attainment of the Organisational Objective, a study of SMEs in Nigeria. The methodology adopted was the survey and empirical approach, with the administration of questionnaires to some SMEs in Nigeria, evaluating the effect competition has on pricing decision (change in product price) and its overall effect on the attainment of organizational objective (profitability). Primary and secondary sources were used in collecting data. It was discovered that competition plays a major role in pricing decision and that there is a relationship between pricing decision and the attainment of organizational objective. Recommendations were made for the close monitoring of SMEs and that SMEs should employ the service of price experts when making pricing decisions.

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File URL: http://upet.ro/annals/economics/pdf/2010/20100124.pdf
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Bibliographic Info

Article provided by University of Petrosani, Romania in its journal Annals of the University of Petrosani - Economics.

Volume (Year): 10 (2010)
Issue (Month): 1 ()
Pages: 229-248

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Handle: RePEc:pet:annals:v:10:y:2010:i:1:p:229-248

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Web page: http://www.upet.ro/

Related research

Keywords: competition; pricing decision; profitability; organisational objective;

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Cited by:
  1. Dr. Terry Najja Kakeeto-Aelen & Professor Jan C van Dalen & Professor H. Jaap van den Herik & Dr. Bartel A. Van de Walle, 2014. "Building Customer Loyalty among SMEs in Uganda: The Role of Customer Satisfaction, Trust, and Commitment," Working Papers 2014/06, Maastricht School of Management.

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