INFLUENCE OF PRICING STRATEGY ON THE SALES OF NEW PRODUCT
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- NGN 3000
ABSTRACT
This project aims at examining pricing strategy and profit planning as a general phenomenon in an organization that needs urgent attention especially the profit making organization. This study is mainly focused on whether effective pricing policy rely more on the estimate of likely demand than knowledge of lost in order to make a logical profit planning decision in a manufacturing company (case study of Brazilian hair). A test was conducted based on the above among some respondents of the case study and it was discovered that out of the 35 respondents that responded 20 supported that effective pricing policy really depend on likely demand of the customers than the knowledge of cost estimate which is represented by 15 respondents out of 35. The results really show that the pricing policy and decision of the users of Brazilian hair rely more on the likely demand than knowledge of cost. The above illustration now made the researcher to conclude that any organization that want to remain in business survive and grow faster more than its equals must take into account and cognizance of customer’s demand and needs before arriving at the final pricing policy and decision.
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