ASSESSING THE IMPACT OF PRICING POLICIES OF AGRICULTURAL INPUTS IN KEBBI STATE (A CASE STUDY OF KASCOM NIGERIA LIMITED)

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TABLE CONTENTS

Title Page

Table of Contents

CHAPTER ONE: Introduction

1.1 Background to the study

1.2 Statement of the Research Problem

1.3 Research Questions

1.4 Objective of the study

1.5 Significance of the study

1.6 Statement of hypotheses

1.7 Scope of the Study

1.8 Limitation of the Study

1.9 Definition of terms

CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

2.2 Conceptual Framework

2.3 Agricultural Organizational Objectives

2.3.1 Increase Sales

2.3.2 Increase Market

2.3.3 Profit Maximization

2.3.4 Market Penetration

2.3.5 Company Image

2.4 Causes of Input Price changes

2.5 Factors Affecting Pricing Policies

2.5.1 Cost of Input

2.5.2 Nature of Market Competition

2.5.3 Customer and Market Segment

2.4.4 Demand

2.5.5 Consumer Behaviour and Perception

2.5.6 Channel of Distribution

2.5.7 Macroeconomic Trends

2.5.8 Company Objectives

2.6 Pricing Strategies

2.6.1 Market Penetration Strategy

2.6.2 Market Skimming

2.6.3 Loss Leader Pricing

2.6.4 Promotional Pricing

2.6.5 Demand Oriented

2.6.6 Competitive Princing

2.6.7 Cost Oriented Pricing

2.7 Input Price and Pricing Cost

2.8 Way of Changing Prices

2.8.1 Underselling

2.8.2 Following the Competition

2.8.3 Competing on Price

2.8.4 Waiting Too Long to Raise Prices

2.8.5 Dropping Price without Changing Delivery

2.8.6 Setting Random Prices

2.9 Effect of Input Price Changes on Demand

2.9.1 Effect of Input Price Changes on Profit

2.10 Theoretical Framework

2.10.1 Market Based Theory

2.10.2 The Exhaustible Resource Theory

2.10.3 The Capital Replacement Theory

2.10.4 Harrod-Dormar Growth Theory

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction

3.2 Research Design

3.3 Sources of Data

3.4 Method of Data Collection

3.5 Population of study

3.6 Sample Size and Sampling Techniques

3.7 Method of Data Analysis

3.6 Limitation of Methodology

CHAPTER FOUR

DATA ANALYSIS AND PRESENTATION OF RESULTS

4.1 Introduction

4.2 Data Presentation and Analysis

4.3 Respondents 0f Bio-Data

4.4 Data Analysis and Interpretation of Result

4.5 Test of Hypothesis

4.5.1 Research Question/Hypothesis 1

4.5.2 Research Question/Hypothesis 2

4.6 Discussion of Findings

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary

5.2 Conclusion

5.3 Recommendations

References

Appendix

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

The disappointing performance of the agricultural sector in many developing countries of the world is receiving increasing attention of the monetary and exchange rate policy makers. This intervention in agricultural markets is widespread and is practiced in rich and poor countries alike. The policies on money supply, nominal exchange rates, interest rates income, international capital flows, fiscal and trade directed at macroeconomics sector of the economy are of utmost importance to agriculture. Monetary policy uses the monetary authority to control the supply of money in the economy.

Every agricultural business entity is set up with the primary objective of making profits and several considerations underlying their profit motive come to bear in determining the pricing of their goods between associated parties. A business, whether small or big, simple or complex, private or public is created to provide competitive prices. Most Agricultural companies lack the knowledge and skills of basic marketing ingredients, such as marketing research, market segmentation and market planning and control which thereafter leads to poor quality inputs, unawareness of competition, poor distribution, and poor pricing methods (Asaolu, 2007)

The poor pricing methods thereafter lead to poor input pricing, which will eventually affect sales (demand) and finally the profit of the business. In a developing country like Nigeria, with low income and high level of poverty, a company that wants to succeed should offer its input at the price the consumers can bear. But often, small manufacturers set prices of their inputs arbitrarily without regard to consumer characteristics in the environment (Ayozie 2008)

Pricing decision is a crucial decision every agricultural organization has to make, because this will eventually affect their corporate objectives, either directly or indirectly (Monroe 2003). For every business entity, irrespective of their line of business and objective, cost minimization and profit maximization are the general factors to be considered and for non-profit making agricultural organizations, there will always be the need to reduce cost at all means and to maximize output. A business whether small or big, simple or complex, private or public, is created to provide competitive prices (Ayozie 2008)...

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