The Role of Pricing Strategies in Marketing Performance: A Field Study on Food Manufacturing Companies in the Capital Municipality of Sana'a, Yemen

Abstract

This study aims to investigate the role of pricing strategies (penetration pricing strategy, psychological pricing strategy, and skimming pricing stratey) in marketing performance and its dimentions (market share, profitability, customer satisfaction, competitivness, and sustainability) in food manufacturing companies (FMCs) in the Capital Municipality of Sana ’a, Yemen, to achieve the study objectives, quantitative descriptive analytical approach is employed, furthermore, the study used a questionnaire to collect data from managerial and supervisory posts employees working in the targeted companies, a sample size consisting of 270 respondents was selected by using a non-proportional stratified random sampling method, the data was analyzed using Statistical Package for Social Sciences (SPSS v.25), to test the hypotheses, several inferential statistical techniques were employed, the results indicated that pricing strategies have a significant and positive effect on marketing performance and its dimentions in FMCs, furthermore, the findings revealed that the more influential strategy was penetration pricing, followed by psychological pricing, and finally skimming pricing, the study recommended the companies under study to apply skimming pricing strategy for new, high-quality products, rather than essential products, and taking into account the weakness of purchasing power of yemeni consumers.