An exploration investigation on important factors influencing pricing strategy for market share adjustment

During the past few years, there have been growing competition among business owners and they mostly have no choice but to decrease their prices in an attempt to survive on the market. In some cases, suppliers offer goods and services for less than the cost of production to gain more market share. In this paper, we study different factors influencing pricing strategy in food industry. The proposed study designs a questionnaire in Likert scale consists of 36 questions, distributes it among 311 Iranian experts in food industry and analyzes it based on principal component analysis. Cronbach alpha is calculated as 0.86 and Kaiser-Meyer-Olkin Measure of Sampling Adequacy and Approx. Chi-Square are 0.72 and 3614, respectively. Based on the results of our survey, we have derived seven factors including supply management, environmental factors, product management, distribution structure, standardization strategies, market leadership and market organization.