Pricing strategies on brand performance: a case study of Safaricom limited Kenya

Abstract

Pricing strategies are critical determinants of a company's market share, profitability, and overall competitive advantage. This study explores the impact of various pricing strategies on the brand performance of Safaricom Ltd, Kenya's leading mobile phone operator. The research aims to understand how differential, competitive, and value-based pricing strategies influence brand performance. A descriptive research design was employed, integrating both qualitative and quantitative methods. Data were collected using structured questionnaires from a sample of 219 respondents out of a target population of 430 management staff at Safaricom's head offices in Nairobi. The findings indicate that Safaricom's strategic approach to pricing significantly enhances its market dominance and brand loyalty. Specifically, the company’s focus on cost standards, competitive pricing, and periodic price adjustments based on operating costs has strengthened its brand perception and customer satisfaction. The study concludes that aligning pricing strategies with customer value perception is essential for sustaining high brand
performance. Recommendations include developing flexible pricing strategies tailored to specific market segments, continuous assessment of pricing strategies in response to market dynamics, and further research on the long-term effects of pricing strategies on brand performance in other sectors and regions.