INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Private universities are those universities owned and operated by private individuals as against federal universities which are typically owned and operated by governments, although private universities may receive tax breaks, public student loans, and grants and are subject to government regulation. Consequently the growth and expansion of the institutions students’ population lies among other factors on the pricing strategy adopted by the institution. The concepts of Price constitute a fundamental factor in determining the quantity of products and services which a firm can attain so as achieve profit and organizational competitiveness. Price consists of the value placed on a product or service which is influenced by a number of factors. The adoption of a pricing strategy takes into consideration some factors such as ability to pay, market conditions, competitor actions, trade margins and input costs, amongst others. The purpose of adopting a pricing strategy is aimed at the targeted customers and to compete favorable. Pricing is an essential element of the marketing plan which differentiates a product or service from another. An effective pricing objective include profit maximization, revenue maximization, quality leadership, quantity maximization, survival ,sales maximization, market share maximization, market share increase, return on investment (ROI), price differentiation, price stability in the market, sales stability in the market.(Avlonitis & Indounas, 2005).Pricing strategies include price discrimination strategy, price skimming, discount strategy, penetration pricing and yield management. The firm’s competitiveness lies in its ability to provide products and service more effectively and efficiently than its competitors. It is the ability of the firm to maintain sustained success and the ability to compete favorably with the world's best firms in cost and quality of goods or services .Richard et al, (2009). The study seeks to appraise pricing strategy and the choice of private universities in Nigeria.
1.2 STATEMENT OF THE PROBLEM
The need to achieve sustained success in the face of competition constitutes a major challenge to many private universities. Many private universities are in a dilemma concerning the prices which they adopt for their institution which constitute a basic determinants in the choice of selection of private institution by students .wrong pricing policy may affect the institutions ability to meet with the funding needs of the institution and as well as provide qualititative education to students. The purpose of adopting a pricing strategy is aimed at the targeted class and to compete favorable. An effective pricing strategy leads to profit maximization, revenue maximization, quality leadership, quantity maximization, survival, sales maximization, market share maximization, market share increase, return on investment (ROI), price differentiation, price stability in the market, sales stability in the market. The problem confronting the study is to appraise pricing strategy and the choice of private universities in Nigeria.
1.3 OBJECTIVE OF THE STUDY
The Main Objective of the study is to appraise the pricing strategy and the choice of private universities in Nigeria; The specific objectives include
1 To determine the nature of pricing strategy.
2 To determine the impact of pricing strategy on the choice of private universities in Nigeria.
1.4 RESEARCH QUESTIONS
1 What is the nature of pricing strategy?
2 What is the impact of pricing strategy on the choice of private universities?
1.5 STATEMENT OF THE HYPOTHESIS
The statement of the hypothesis for the study is stated in Null as follows
HO The impact of pricing strategy on the choice of private universities is low.
1.6 SIGNIFICANCE OF THE STUDY
The study appraises pricing strategy and the choice of private universities in Nigeria. The study shall therefore serve as veritable source of information to stakeholders to proffer interventions which will address the problem
1.7 SCOPE OF THE STUDY
The study focuses on the appraisal of the pricing strategy and the choice of private universities in Nigeria.
1.8 LIMITATION OF THE STUIDY
The study was confronted with logistics and geographical factors
1.9 DEFINITION OF TERMS
PRICE DEFINED
Price is the value that will purchase a finite quantity, weight or other measure of a good or service.
FIRMS COMPETITIVENESS DEFINED
The firm’s competitiveness lies in its ability to provide products and service more effectively and efficiently than its competitors. It is the ability of the firm to maintain sustained success and the ability to compete favorably with the world's best firms in cost and quality of goods or services.
FINANCIAL PERFORMANCE DEFINED
This is the measure of the firm’s financial returns or goals through the use of evaluation method or financial indicators.
RETURN ON INVESTMENT DEFINED
The return on investment defines the firm’s efficiency in the utilization of the invested capital. This ratio is determined as net profit after tax divided by total paid in capital.
CUSTOMER SATISFACTION DEFINED
Meeting or exceeding customer expectations
