Effective Pricing Strategies For Introducing A New Product In The Market. (a Case Study Of Globacom Gms Enugu Metropolie)

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          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.






Title page                                                                       II

Approval page                                                               III

Dedication                                                                     IV

Acknowledgement                                                         V

Abstract                                                                         VII

Table of content                                                             VIII



1.1            Background of the study                                               1

1.2            Statement of problems                                         4

1.3            Objectives of the study                                         5

1.4            Formulation of the study                                               6

1.5            Significant of the study                                        7

1.6            Scope of the study                                                         8


2.0            LITERATURE REVIEW                                     9

2.1     An overview of service                                         9

2.2            Characteristic of service                                                 10

2.3            Overview of price                                                 13

2.4            Types of pricing strategy                                               15

2.5            Pricing of communication services                       17

2.6            Pricing objective                                                   18

2.7            Impact of pricing on customers patronage of GSM services 21

2.8            Selling an appropriate price for GSM communication service. 23



3.0            Research methodology                                         25

3.1     Source of data                                                      25

3.2            Population of the study                                                 25

3.3            Sampling techniques                                            26

3.4            Sample size determination                                   26

3.5            Research instrument used                                    27

3.6            Method of data treatment and analysis                28

3.7            Limitation of the study                                         29



4.0            Presentation, analysis and interpretation of data           30

4.1     Presentation and analysis of data                         39

4.2            Test of hypothesis                                                         39



5.0            Summary of the findings, Recommendation and Conclusion

5.1     Summary of findings                                            52

5.2            Recommendations                                                         53

5.3            Conclusion                                                           54


Bibliography                                                        55

Appendix                                                             57






          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.



          Price is an important marketing mix that makes or mar a company especially in a delegated economy like in an attempt to make quick money or an excess profit.  Communication industry especially GSM operators usually increase a price of their services and product in discruminately.

          This is no double affect the patronage of customers.  It has also been discovered that the price of GSM  service are not commensurate with the quality of services offered.  This money charged for voice mail cause for service questioning.

          Although Global com GSM is yet to make an impact in Enugu metropolis but one does not expect must difference in the quality and price of their product as in areas where they have stated operation.  It is because of important enterprise in the marketing of goods and services that the research examine.



1.                 To determine whether the pricing system of communication companies attract customers.

2.                 To find out the problems associated with the pricing system of communication companies

3.                 To determine the effect of pricing system on the profitability of communication companies.

4.                 To find out the problems associated with the pricing system of communication companies

5.                 To see if repeat patronage of the customers of communication companies as a rest of the pricing system.

6.                 To find out how communication companies fix their charges.

7.                 To make appropriate recommendation on how to improve on the changing system of the communication companies.



          HYPOTHESIS     1

Ho:    Pricing system adopted by communication companies not  attract customers.

Hi:     Pricing system adopted by communication companies attract customers.



Ho:    Pricing system of communication companies does not lead to increase profitability of the company

Hi:     Pricing system of communication companies lead to increased profitability of the companies.



Ho:    Pricing system adopted by communication companies does not  lead to customers repeat patronage.

Hi:     Pricing system adopted by communication companies lead to customers repeat patronage.



Ho:    Pricing system as adopted by communication companies is not commensurate with quality of service rendered.

Hi:     Pricing system as adopted by communication companies is commensurate with quality of service rendered.



          The study is not only an academic exercise, it will have a substances benefit to the researcher.  It will wider the researcher knowledge in research writer or pricing strategic adopted by communication industries.

          It will be of immerse benefit to researcher’s or reader’s who will find the study as a source of literature review.

          Global com and other related firms will find the write up very useful it will help them to know how to fix prices their service/product.

          The government also will equally benefit from the study since they equally involve in marketing of communication service.


          This research was under taken to examine the effective pricing strategic for introducing a new product in the marketing, a case study of Global com GSM in Enugu.

          However in the view of limited resources, time and other constraints emphasis was placed on Global com operations within Enugu metropolis.



(1)             Price – Is the monetary expression of valve

(2)             Marketing – The process of identify, anticipating and want through exchange made.

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