The Effect of Pricing Strategies on Sales Performance: In case of Dire Dawa National Cement Share Company

This study investigates the impact of pricing strategies on the sales performance of Dire Dawa National Cement Share Company in Ethiopia. Prior research has explored the connection between pricing strategy and sales performance in the global cement industry, but there is a research gap for National Cement in Dire Dawa. The company needs to identify effective pricing strategies to secure market dominance despite maintaining robust sales in the high-demand market and facing the challenge of a new cement plant's arrival. The study's objectives include assessing customer insights into the company's pricing strategies, analyzing the competitive environment's consideration in setting prices, exploring the impact of pricing strategies on sales performance, and determining alternative pricing strategies influencing National Cement's sales performance. To achieve these objectives, a quantitative research approach using a descriptive survey design is adopted. Census sampling selects all 66 individuals for the study to ensure the findings represent the entire population accurately. The research findings reveal a mixed effect of National Cement's product and pricing strategies on sales performance. Demographic analysis reveals the predominant age group and gender distribution within the study population. Moderate customer satisfaction and neutral perception of product quality are observed. Respondents demonstrate a good understanding of the pricing strategy with moderate agreement on affordability compared to competitors. The analysis of sales performance shows mixed views on the applied pricing strategy and a neutral view of its impact. The study recommends enhancing customer satisfaction by emphasizing the perceived value of products/services, improving product quality perception through quality control measures, and enhancing the loyalty program to increase customer loyalty 4 and repeat purchases. Clear communication of pricing strategies and periodic price reviews are also recommended to maintain competitiveness. Additionally, cost-based pricing strategies and conducting further research to identify the optimal pricing strategy are suggested. Finally, monitoring market competition and adapting pricing and sales strategies accordingly are recommended. In conclusion, this study provides insights into the impact of pricing strategies on the sales performance of Dire Dawa National Cement. National Cement can optimize its pricing strategy by considering the recommendations and conducting further research, gaining a competitive edge in the cement industry in Dire Dawa, Ethiopia.