This study focused on the effective of pricing strategies for introducing a new product in the market (A case study of Globalcom GSM Enugu metropolis).
To carry out the research work the some of the following objective were set out.
To find out the problem associated with the pricing system of communication comparing.
To make appropriate recommendation on how to improve on the pricing system of the communication industries.
Four hypothesis were formulated Data were sources using questionnaire, Extensive Literature review on past work, test books, journals on the area of study were carried out. Bourley if formular was used to determine the sample size of the customers while a census of the staff was carried out.
The data collected were presented on stated tables, analyzed and interpreted while the researcher hypothesis was tested using chi-square.
Based on the analysis the following findings were made that the pricing system adopted by communication instructor in Enugu metropolis is not commensurate with the quantity of service rendered.
That the pricing system adopted by communication industries does not attract customer.
In the view of above findings the researcher recommends among others.
That the pricing of communication service should be customer oriented.
That communication industries should improve on their service quality so that it will be in line with price charged.
It is the researcher opinion that if these recommendation are judiciously carried out communication industries will not only serve their customer better but also improve their profit margin.
Communication has become one of the greatest tools in marketing of goods. This important services has to be appropriating proceed in order to attract customer patronage and increase protiability.
According to Kotles (1996 P:46) price is the amount of money customers pay for the product or service and the time a place of exchange.
Mumer (1994:10) in the quality review of marketing stated that price is the exchange value of a good services and the value of an item is what it can be exchange in the market place, every product and service has its price. It is through price and payment that firms recover their cost of production and active their margin of profit.
Price is the monetary expression of values. Value is created on utility, utility is an expression of usefulness, while usefulness is based on the potential for need and want, satisfaction value and utility are culturally based while needs and want cultural psychological, sociological and physiological based, therefore price as an ultimate expression of needs and want satisfying potential of an item of product or services which has cultural psychological economic implication on market.
Edoga and Ani (2000: 319) noted that price is often used to indicate value when it is paired with the perceived quality of product or service specifically, value can be defined as the ration o perceived quality to price (value perceived quality/price).
This relationship shows that for a given price as perceived quality increase, value increases. Also, for a given price, value, decreases when perceived quality decrease. For some product, price itself influences that perception of quality ultimately value, to consumers, this include transport service.
Pricing is an important and complete elastic of the marketing mix and generate the highest level of external interference.
It is a major determinant with volume of goods and service available for the consumer in any economy. Therefor, forms especially those on profit business has to chose with the control. The environmental variable, both external and internal pricing policies and techniques which are available to achieve its organizational objective.
The importance of price in communications industry cannot be one emphasized. If communication organization wants to maximize its net profit the right price must be selected for its services price in a services may either be to higher too how to be good. When the price changed are two high the size of the market for that particular product may be unnecessary restricted and if the right price where used. The size of net profit is directed to the effectiveness of price because price usually cause change in market demand for a given product and in turn its revenue and net profit.
Monree (1992: 210) noted that the consumer perception of product quality vary directly with the price, the higher the price, the better the quantity is perceived to be.
In the world of Ichie (1993: 25) without price there can be no marketing, product may be marched with market but only when buyers and sellers agree on price, ownership transfer actually occur. Either a buyers or a seller may propose a price but it is not effective until price is accepted by the owner.
In the view of the compose nature of price and important to customers patronage decision the researcher in the study critically examine the effective pricing strategies for introducing a new product in the market with particular interest on Global Communication GSM operation in Enugu.
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