Competitive Pricing and Organizational Performance of Alcoholic Beverage Distribution Firms in Machakos County, Kenya
DOI:
https://doi.org/10.47941/jbsm.4027Keywords:
Competitive Pricing, Organizational Performance, Alcoholic Beverage Distribution, Pricing Strategy, Market Share, Customer RetentionAbstract
Purpose: The purpose of this study was to examine the relationship between competitive pricing and organizational performance of alcoholic beverage distribution firms in Machakos county, Kenya.
Methodology: The study employed a mixed methods research design and the data were collected from alcoholic beverage distribution company managers and staff within Machakos county sing structured and semi structured questionnaires and interview guides. Descriptive and inferential statistics including Pearson correlation and multiple regression were applied. When dealing with markets in which customers can easily look at price and switch from one supplier to another, competitive pricing is a key strategic factor for firms.
Findings: The descriptive results yielded an average score of 4.30 (SD = 0.74) which falls within the generally accepted range of agreement. The Pearson correlation was used to examine the relationship between competitive pricing and organizational performance, and the results indicated that there was a strong positive correlation (r = .783, p < .05). Multiple regression analysis also revealed that competitive pricing was statistically significant (β = .281, p < .05) for organizational performance. This was all corroborated by the qualitative evidence, which suggests that appealing and responsive pricing helps to attract customers, keep them, grow sales, and expand the market.
Unique Contribution to Theory, Policy and Practice: This study expands resource-based view and porter’s generic competitive advantage theory to alcoholic beverage distribution context in a devolved county economy. It informs the county licensing and levying regulation to balance affordability and business sustainability. Distribution firms can adopt data-driven competitive pricing to improve sales volume, market share, sales profitability and customer retention.
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Copyright (c) 2026 Joshua Wambua Kithome, Dr. Margaret Nganu, Dr. Ruth Muinga
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