Pricing Strategies and Subscribers’ Patronage

The study investigated the effect of pricing on the subscribers’ patronage of satellite television services in Calabar metropolis. The objectives were to determine the effect of skimming and penetration pricing on subscribers' patronage of Multichoice/DSTV services in Calabar. The strategy reviewed key concepts bordering on the independent and dependent variables. The study adopted a survey research designed to elicit specific information from respondents through the use of questionnaires. Data were obtained from the primary and secondary sources. The study adopted a simple random and a convenience sampling technique. The analysis of 246 administered questionnaires revealed the following results with a simple regression analysis technique. Penetration pricing strategy has a significant effect on subscribers’ patronage of Multichoice/DSTV satellite services while the skimming pricing does not. The study recommends that Multichoice/DSTV should maintain the current low pricing strategy. The high pricing strategy should be modified to increase patronage for the classic packages of Multichoice products. That firms should consider market segmentation strategy to cater to their diverse customer segment.