RELATIONSHIP BETWEEN PRICING STRATEGIES AND VALUE PROPOSITION ENVIRONMENT BY KENYA POWER AND LIGHTING COMPANY PLC IN KENYA
Date
2024Author
Nyaga, Sheila Karimi
Muhoro, Priscilla
Mwangi, Caroline Igoki
Otieno, Dennis
Metadata
Show full item recordAbstract
This research aimed to investigate the relationship between pricing strategies and the value proposition
environment within Kenya Power & Lighting Company PLC. Specifically, it seeks to determine the impact of
pricing strategies on the value proposition environment, while also exploring the moderating role of Michael
Porter's Five Forces. The target population consists of households and Small Medium Enterprises (SMEs) in
Murang’a, Embu, and Nairobi Counties, which collectively represent a significant portion of electricity consumers
in Kenya. The approximate population of these counties is 313,868 for Murang’a, 1,573,402 for Nairobi, and
184,002 for Embu. The study employed a proportionate sampling method, with percentages for various industries
randomly chosen after careful consideration. The Krejcie & Morgan table was utilized to ensure representative
sampling. Questionnaires were distributed concurrently across the three counties to ensure data collection
consistency. Despite logistical challenges, 259 questionnaires were collected out of the total 384 distributed.
Analysis revealed strong positive correlations between pricing strategies (r=0.327), and Michael Porter's Five
Forces (r=0.657) with the value proposition environment. These correlations were statistically significant, as
indicated by p-values ranging from 0.000 to 0.05. Regression analyses further supported the significance of these
relationships. Pricing strategies explained 10.7% of the variation. The study underscores the critical role of
strategic decision-making in shaping the value proposition environment within Kenya Power & Lighting
Company PLC. It highlights the need for comprehensive strategies that consider technological aspects to enhance
consumer value and promote sustainable growth in the electricity sector. The study recommends embracing
pricing strategies for competitiveness, leveraging Porter's Five Forces framework for strategic insights, and
fostering a culture of continuous monitoring and adaptation for sustained success.
Collections
- Journal Articles (BE) [408]
