THE IMPACT OF PRICING STRATEGIES AND CUSTOMER LOYALTY AMONG EATERIES FIRM IN YENAGOA BAYELSA STATE.
Abstract
The study examined pricing strategies and customer loyalty among eateries in Yenagoa, Bayelsa State. The study seeks out to examine how pricing strategies influence customer loyalty. Three research questions and three research hypothesis were raised to guide this study. The social exchange theory and survey research design was adopted for this study. A sample size of 400 was drawn from the study population. Drafted questionnaire was issued to the sampled respondents which were fill and returned. The returned questionnaire was analyzed using multiple regression with the aid of statistical package for social sciences SPSS. The result showed that there is significant relationship between price discount and customer loyalty, the study also found out that there is significant relationship between bundle pricing and customer loyalty, the regression also result also shows a positive relationship between psychological pricing and customer loyalty. The study therefore concluded that price discounts motivated new customers to try products being offered, and that high price discount did not show consumers that they were receiving low-quality products or services. Consumers reckoned that they could save more on a product when a higher price discount was provided, and they did not worry about the product they wanted to buy due to the provided discount. The study therefore recommends that managers should ensure that they provide discounts within their businesses to attract customers. Managers of retail stores should apply the price bundling strategy to facilitate their ability to sell lots of items at higher margins while providing consumers a discount at the same time.