Evaluating the Use of Pricing Model to Win Customers in Manufacturing Industries: Evidence from Nigerian Bottling Companies

Abstract

Pricing model is one of the major marketing strategies to win customers’ patronage in manufacturing companies. Manufacturers/entrepreneurs often used pricing model to penetrate market with both new and existing products. This study aims to evaluate the use of pricing model in winning customers confidence in patronizing goods/products manufactured by enterprising companies, gathering evidences from Nigerian Bottling Companies. The study intends to investigate the relationship between dynamic pricing model, cost-oriented pricing model, penetration pricing model and customers’ patronage. The study is premised on quantitative analysis where Statistical Package for Social Sciences (SPSS) is used to analyze data elicited from respondents. The findings of the study revealed that there exist a significant relationship between the three independent and dependent variables. The study therefore concludes that manufacturing companies should intensify efforts to adopt the use of different pricing models to win more customers for their products. Furthermore, the researchers recommend that pricing models should be part of strategic policy of manufacturing companies in order to attract more customers/consumers for their products. This will definitely bring industrial growth and efficiency in the manufacturing companies.