The effect of pricing on organizational market performance in the satellite digital service providers in Uganda; case study: Zuku television

Abstract

The study established the effect of pricing strategy and organization market performance in the satellite digital service providers in Uganda using Zuku TV as a case study. The study was guided by the following objectives; to assess the effect of market skimming pricing on organizational market performance, to determine the effect of market penetration pricing on organizational market performance and to establish the effect of bundle pricing on organizational market performance at Zuku TV. A case study survey was conducted at Zuku TV. A cross sectional survey with quantitative approach was used to collect data and a sample size of 86 respondents was obtained. Data was collected using self-administered questionnaires and interviews guide, then analyzed using SPSS version 20. The study findings showed a positive significant relationship between Market penetration pricing and Organization performance (r=0.544**; p<0.001) implying, Organizational Market performance is positively affected by Market penetration pricing such helps in controlling the cost thereby cost efficiency is achieved and improves overall efficiency of the company. The study findings revealed that there is a positive insignificant relationship (r = 0.105**, p > 0.01) between Market skimming price strategy and Organization Market performance, indicating Organization Market performance is not affected by Market skimming than this type of strategy. The study findings also showed a positive insignificant relationship between Bundle pricing and Organization market performance (r=0.014**; p>0.001) implying, Organization market performance is not positively affected by Bundle pricing for example customers get a discount for the bundled product this helps the company in clearing the idle stock available with the company. The study findings indicate that Bundle pricing is not a predictor of organizational market performance implying a change in a Bundle pricing does not lead to a change in organizational market performance. The study recommends that management of Zuku TV should make efforts to ensure that there is an effective Pricing strategy, during market penetration attracting and screening so as to promote employee job performance and a need to do more pricing strategies to stimulate organizational market performance in the digital satellite service providers. The study therefore concludes that pricing has a positive and significant relationship on organizational market performance