Abstract:
The pricing of any product in the market is an important determinant of the extent to which customers and
competitors respond to it. It is also expected that market share of a company’s products may be determined by the pricing
strategies adopted and implemented. The purpose of this study was therefore to evaluate the effects of pricing on market share of
security firms in Kenya, with reference to Nakuru Municipality. The study employed cross-sectional survey method. The target
population was 2,500 respondents comprising of customers to security firms. From the target population, a sample of 300 (12%)
respondents was picked; using stratified sampling and simple random sampling techniques. The data were collected using
structured questionnaires and analyzed using percentages and frequencies and presented in form of tables and charts. The study
found out that price had a bearing on the market share of security firms since customers assessed the utility they got from the
product/service based on benefits received and sacrifices made. Therefore, if consumers perceived price to be high, they could
purchase competitive brands or substitute products/services leading to a loss of sales (market share). The study recommends that
clear pricing structure/policy that takes into consideration a number of factors should be developed to harmonize the customer
perception about service quality and the firm’s anticipated profitability level.