Influence of pricing strategies on sales performance in Telecommunication companies in Tanzania: A Case of Telecommunication Companies in Mwanza City
The study aimed to examine the influence of pricing strategies including value-based pricing, competition-based pricing, and cost-based pricing on sales performance of Telecommunication Companies. This study deployed quantitative approach and descriptive survey design in order to attain its purpose. The was conducted in telecommunication companies including Vodacom, Tigo, Airtel, Halotel, and TTCL in their branches located in Mwanza City and the 169 staffs including sales officers and marketing officers were sampled using stratified sampling method. Krejcie and Morgan Table, (1970) aided the researcher to determine the optimum sample size for the study. Data were collected through questionnaires and analyzed using descriptive statistics and inferential analysis (correlation, ANOVA, and multiple regression analysis) with the help of Statistical Package for Social Science (SPSS Version 21.0). The key findings of this study through multiple regression analysis indicated that the pricing strategies including value-based pricing, competition-based pricing, and cost-based pricing have positive and significant effect on sales performance of telecommunication. In respect to Beta coefficients, value-based pricing contributes to sales performance by 10.9% at a significance level of 0.050, competition-based pricing strategy contribute to sales performance by 32.5% at a significance level of 0.000 and cost-based pricing contributes to sales performance by 53.0% at significance level of 0.000. This study recommends that the companies should continue using the mentioned pricing strategies as they are crucial in improving sales performance of telecommunication companies.
Keywords: Value-based pricing strategy, competition-based pricing strategy, cost-based pricing strategy, sales performance