Impact of Pricing Strategies on Beverage Product Life Cycle: a Case Study of Rite Foods

Beverage industry provides economic benefit to every nation, and Nigeria is of no exception. Problems of the industry include differences of pricing objectives, inability to develop effective pricing strategies, inability of business to understand pricing impact, and difficulties in quick adjustment of pricing strategies. One of the effective monitoring in beverage industries is the trend between pricing strategies and life cycle of the beverages. This study examines the impact of pricing strategies on the product life cycle of beverages using rite foods as the study area. The study objectives include; to examine the impact of price skimming strategies on the product life cycle of beverage products; to evaluate the impact of price penetration strategies on the product life cycle of beverage products; to determine the influence of competitive pricing strategies on the product life cycle of beverage products; and assess the impact of dynamic pricing strategies on the product life cycle of beverage products. The study made use of survey research; 346 questionnaires were used as the research instrument. Regression and correlation were used as statistical tools of analysis. The data gathered was presented in tables and the hypotheses were tested using correlation and regression analysis by the use of Statistical Package for Social Science (SPSS). The study found that skimming pricing with (R2 = 0.605, R= 0.778, B= 0.796, P = 0.000,) penetration pricing with (R2 = 0.662, R= 0.814, B= 0.704, P = 0.000.) competitive pricing with (R2 = 0.852, R= 0.923, B= 0.923, P = 0.000.) and dynamic pricing strategies with (R2 = 0.736, R= 0.856, B= 0.431, P = 0.000.) has significance at level of 0.05 respectively on product life cycles. The study concluded that all strategies used are significant. The study recommended alignment of pricing strategies with the specific stage of the product life cycle b businesses to achieve business objectives.