PRICING STRATEGIES AND CUSTOMER LOYALTY IN FMCG COMPANIES IN ASABA, DELTA STATE

Authors

  • Idenedo, Otite Wisdom,
  • Bereprebofa Dudutari,
  • Asiagwu Catherine Ekene
  • Nworji Ogochukwu Winifred
  • Efefairoro Zilla Okiemute

Keywords:

Pricing Strategies, Penetration Pricing, Skimming Pricing, Competitive Pricing and Customer Loyalty

Abstract

This study investigated pricing strategies and customer loyalty in fast-moving consumer goods companies in Asaba, Delta State. The specific objectives were to ascertain the link between penetration pricing, skimming pricing, competitive pricing, and customer loyalty. We sampled two hundred ten (210) teaching and non-teaching staff of the Federal College of Education who are customers of FMCG (Fast Moving Consumer Goods) in Asaba for the study, using the Krejice and  Morgan (1970) table to determine the sample size. A structured questionnaire was used to collect data from the sampled staff. The data was analysed and the hypotheses were tested using the Pearson Product Moment Correlation (PPMC). The findings revealed a significant link between penetration pricing, skimming pricing, competitive pricing, and customer loyalty. The researchers thus conclude that there is a substantial association between pricing strategies and customer loyalty.
The study therefore recommended that FMCG companies that seek to improve customer loyalty should consider adopting pricing strategies that align with consumer preferences, purchasing power, and market dynamics. FMCG companies should carry out proper marketing segmentation before deciding on either penetration pricing, skimming pricing, or competitive pricing strategies, considering the present economic instability, inflation, and high competition that could exacerbate the difficulty in attracting new and keeping existing customers while maintaining profitability.

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Published

2025-01-12

How to Cite

Otite Wisdom, I. ., Dudutari, B. ., Catherine Ekene, A. ., Ogochukwu Winifred, N. ., & Okiemute, E. Z. . . (2025). PRICING STRATEGIES AND CUSTOMER LOYALTY IN FMCG COMPANIES IN ASABA, DELTA STATE. BW Academic Journal. Retrieved from https://bwjournal.org/index.php/bsjournal/article/view/2558