The Impact of Pricing Strategies on Financial Perfomance of a Company: A Case Study of First Mutual Properties · Electronic Theses and Dissertations

Author

Kembo, Simon T

Title

The Impact of Pricing Strategies on Financial Perfomance of a Company: A Case Study of First Mutual Properties

Abstract

The study is about an investigation into pricing strategies at First Mutual Properties. Despite the
company's pricing strategy, the amount credit losses and number voids kept rising, which
prompted the researcher to investigate the impact of pricing strategies on financial performance.
.In order to gather the necessary information familiar with recent studies, this review sought to
learn what other writers who conducted the same study had to say. In order to obtain the data
necessary for the study, the researcher used descriptive research methodologies. Both conducting
interviews and giving out questionnaires were among the strategies used. FMP members of the
Property Services, Internal Audit and Finance department comprised the population used in the
study. A population of 40 was used to conduct this study and out of 40 people only 35 participated
in the survey since they managed to respond to the questionnaires sent. The data gathered from the
respondents was analyzed using SPSS version 20.
The main findings showed that FMP's present pricing approach was ineffective in the current
economy, leading to unjust rental costs that compelled tenants to vacate the firm's property,
increasing the number of vacancies and lowering income. Tenants' mid-term lease terminations
increased credit losses as a result of the existing pricing approach, which also decreased the
company's revenue. The researcher recommended First Mutual Properties to use strategic pricing
when pricing its rental space as it is the one suitable in the current economy of Zimbabwe. Strategic
pricing maintains market share, reduces number of voids and controls credit losses thereby
increasing revenue. Further research can be done on other aspects that causes revenue to decline
in property companies, like the impact of lease contracts on financial performance.

Date

2023

Publisher

BUSE

Keywords

Financial performance

Pricing Strategies

Supervisor

N/A