Effects of Product Pricing on Business Failure
Irefin, Isaac Adeyemi; Hammed, Olawale Gazal; Onu, Livinus Okpara

The paper examined the impact of product pricing on business failure in Nigeria, using some table water producing and packaging companies in Alimosho/Ejigbo area of Lagos State as a case study. The research methods adopted were survey research design and oral interview. Fifty six companies judgmentally selected through cluster sampling techniques, completed and returned their questionnaires. The questionnaires were analyzed using descriptive and chi-square statistical tools. Some of the findings were that majority of the managers are women, of middle age and well educated and that the sub-sector is contributing significantly to economic empowerment and employment generation. Additionally, it was discovered that management inexperience in product pricing, increasing cost of factor inputs where price is constant, intermittent price war and consumers’ resistance to price increases all have significant relationship with business failure. The conclusions indicated among others, that appropriate product pricing is a key management function which if inappropriately handled could result in business failure.

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