The Influence of Competitive Pricing Strategy on Business Performance among Furniture Fabricators in Nyamagana District, Tanzania

Abstract

This study explores the impact of competitive pricing strategies on business performance among furniture fabricators in Nyamagana District, Tanzania. The study used a quantitative research design whereby data was collected through a questionnaire rated on a 5-Likert scale. A total of 108 questionnaires were returned and filled in. Data was analyzed quantitatively with the help of SSPS version 20 and presented in descriptive and inferential statistics. Specifically, the demographic profiles of the respondents were presented in the form of frequency and percentage. The analysis reveals a significant relationship between competitive pricing and key performance indicators like revenue, profit, and increased number of customers, and regression analysis confirmed that furniture fabricators who engage in business and use dynamic pricing strategies can generate business success, especially the use of competitor's pricing strategy adopting competitive pricing strategies benefited from improved market positioning, customer acquisition, and revenue growth. These findings suggest that competitive pricing remains essential for businesses to stay relevant in competitive markets, and policymakers must develop and implement policies that support a competitive and fair market environment.