Edward, Marecha
(2013)
The Impact Of Multiple Pricing Strategies On Consumer Purchasing Behavior: The Case Of AIRTEL and TIGO Tanzania.
Masters thesis, The Open University of Tanzania.
Abstract
Multiple pricing strategies have grown to be the major pricing strategy practiced by major telecom operators in Tanzania. The study is on the impact of multiple pricing strategies to consumers purchasing behavior and looking at the role of this strategy to company performance. Tigo and Airtel Tanzania were used as a case study. Various literatures were consulted to get the theoretical and empirical thoughts of prominent authors about the subject to help the researcher craft and refine his methodology. Questionnaires and documentation were the key methods of data collection supported by interviews. Both primary and secondary data were collected and were analyzed using qualitative and quantitative techniques.
The findings shows that both operators do not actually plan the pricing strategy to deploy but they just react from the market force. The finding prove a significant impact of the practiced multiple pricing strategy to on consumer behavior where during the initial stage the strategy show a positive impact to consumer and company performance. Looking at the year 2007, which was mainly the beginning of this strategy, Tigo increase customer base by almost 127%, this was a remarkable performance. However, as the time goes consumer create a strong onnet community as a family and friends, the evidence to this is the decline in offnet traffic contribution from 31% in 2006 to only 4% in 2011. This has results into revenue decline in among the operators. The researcher recommends that this strategy can only be used as a short-term strategy for quick results or it should be supported by other pricing strategies or consumer loyalty schemes for long-term results.
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