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PricingStrategy

of HardwareStores in Naga City

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Why choose this topic?

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Statement of the Problem

1. What is the profile of hardwarestores in Naga City as to:

Ownership

Length of operation

Number of employees

Presence of Acountant/Bookkeeper

Average Annual SaleAverage Annual Income

Average Annual Capital

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Statement of the Problem

2. What are the factors considered in choosing thepricing strategies to be used by the business entity?

3. What are the pricing strategies being employed by the

selected hardware stores in Naga City that help themin planning and decision making regarding the pricing

of the product?

4. What is the relationship of pricing strategy to theprofitability of hardware stores in Naga City?

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Scope and Limitation

Respondents:

Total enumeration of registered

hardware stores from the list of Office ofthe Treasurer in Naga City Hall

Time Frame:~ June 2014March 2015

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Significant of the Study

This study will benefit the following:

Hardware Store Owners/Management

Customers

Future Entrepreneurs

Local Government of Naga

Government Agencies

Academe

Future Researchers

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Definition of Terms

Anti-Competitive Pricing

Strategy of hardware store owners wherein

they set prices lower than the competitors to

force them out of business and gain moremarket share.

Competitor

Other hardware stores which offer a similarproduct.

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Definition of Terms

Competitive Pricing

Strategy of hardware store owners where theirprices are based on competitors strategies,

prices, costs and market offering.

Cost-Based Pricing

Strategy of hardware store owners wherein they

set their prices based on the cost forproducing, distributing and selling the

product plus a fair rate of return for effort

and risk in setting their prices.

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Definition of Terms

Customer

The person who buys goods in hardware

stores and willing to pay certain amount of

money.

Demand

Refers to the number of products that the

customers are willing to buy from thehardware stores.

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Definition of Terms

Discount

A straight reduction in price on purchases

made in hardware stores during stated period

of time or of larger quantities.

Hardware Stores

It is a store that sells metal goods and things

for your home or garden such as pans,knives, tools and chemical products.

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Definition of Terms

Market

A group of buyers and sellers of a particular

good or service in hardware stores.

Price

The amount of money charged to product of

hardware stores. It is the sum of the values

that customers exchanged for the benefits ofhaving or using that product.

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Definition of Terms

Pricing Strategy

Activities aimed by the hardware store owners atfinding a products optimum price, typically

including overall marketing objectives, consumerdemand, product attributes, competitors' pricing,

and market and economic trends.

Profitability

It is the ability of a particular hardware store

to earn income and not suffer from

any losses in their operations.

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Definition of Terms

Supply

Refers to the amount of a product that

hardware store owners are willing to sell at a

given price when all other factors being heldconstant.

Value-Based Pricing

Strategy of hardware store owners wherethey set their price based on buyers

perception of value rather than on the

sellers cost.

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Review of Related Literature

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Review of Related Studies

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Theoretical Framework

Reem Heakal (2013)

supply and demand is perhaps one of the

most fundamental concepts of economics and

it is the backbone of a market economy.

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Conceptual Framework

Profile of

Hardware Stores:

Type of Busines

Organization

Length of Operation

Number of Employees

Presence of

Accountant/BookkeeperAverage Annual Sale

Average Annual Income

Average Annual Capital

Factors

considered in

choosing Pricing

Strategy

Pricing

Strategy:Competitive Pricing

Anti-Competitive Pricing

Cost-Based PricingValue- Based Pricing

P

R

O

F

I

T

A

B

I

L

I

T

Y

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Methodology of the Study

Research Method:

Descriptive Method Qualitative

Quantitative

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Methodology of the Study

Population:

Total enumeration of 55registered hardware stores in

the list from the Treasurers

Office of Naga City Hall

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Methodology of the Study

Research Instrument:

Structured Questionnaire

Face-to-Face Interview

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Methodology of the

StudyData Gathering Procedure

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1. Present an approved letter from the adviser to

the hardware store owner/manager/representative.

2 S k h f h h d

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2. Seek the consent of the hardware store

owner / manager or any representative for

an inteview.

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3. Set a schedule or

appointment for an interview.

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4. Conduct the interview by pair.

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5. Process, analyze and

interpret the results of the study.

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Methodology of the Study

Method of Data Analysis: Obtained data will be tabulated and

processed using the Statistical Packagefor Social Sciences (SPSS).

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To obtain the percentages of the

processed data:

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To obtain the weighted mean of

the processed data:

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The formula to calculate the

ranking average:

Where:

xresponse count for answer choicewweight of ranked position

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The corresponding weight of the

answer choices in the study:

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To determine the ranking of the factors

that business entities consider in

setting the price of their products andservices:

The answer choice with thehighest ranking average is

the most preferred choice.

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To obtain the results regarding the

agreement of the respondents on

the pricing strategies being used:

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END OF PRESENTATIONThank you!