Pricing Strategy - Research Paper

LADY OF LOURDES HOSPITAL & COLLEGES OF CAYBIGA INC.
15 Gen Luis St. Caybiga, Caloocan, Philippines
A Pricing Strategy Research Paper
Presented to the faculty of the

College of Business Administration
Of
LADY OF LOURDES HOSPITAL AND COLLEGES OF CAYBIGA, INC.
In Partial Fulfillment of the Degree of

BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION
MAJOR IN MARKETING MANAGEMENT
By:
CARDENAS NICOLE ANN M.
BSBA 3-N
Introduction:
Analyzing the price at which consumers are prepared to pay for a good or service is
known as pricing research, and it is an essential component of market strategy. This technique
finds the best possible pricing range by balancing the needs of customers, the worth of the
product, and revenue targets. Businesses can assess price sensitivity, demand at various price
points, and the potential effects of pricing changes on sales volume and profit margins by
performing pricing research.
In order to get information on customer behavior and preferences, the procedure

usually combines a number of techniques, including conjoint analysis, pricing experiments,
surveys, and more. Establishing pricing for new products, modifying prices for current ones, and
creating marketing plans are all aided by this research.
Research Paper:
1. Interview at least the following and evaluate how do they usually set their pricing offers:
A. 5 Eatery
B. 5 Neighborhood Bakery
C. 5 Online Vendor
D. 5 Street Food Vendor
E. 5 Service Type Business
2
A.1 Eatery
Name of Business: Nuqui’s Lugawan
Location: Bignay Valenzuela City
Business Owner’s Name: Olivia Nuqui
Picture A.1 shows their goods on a daily basis. Picture A.1.1 Online interview thru messenger.
QUESTIONS:
A.What type of product do you sell/offer?
- Porridge, fried eggs, fried tofu, vegetable spring rolls.
B. What are the factors involved in your pricing decisions?
3
- Based on the prices on our ingredients and then I set the price on fair price for my regulars’
customers.
C. What pricing method do you usually implore in your strategy?
- By setting my prices low based on my target customers.
D. How do you adapt the pricing strategy based on the location, clienteles, etc.
- Usually, my clients are within my store premises so I can easily adapt to the location.
A.2 Eatery
Name of Business: MIMI’S SILOGAN
Business Owner’s Name: Haydee F. Carlos
Picture A.2 shows their goods on a daily basis. Picture A.2.2 Online interview thru
messenger
QUESTIONS:
A. What type of product do you sell/offer?
4
- Porridge, fried eggs, fried tofu, vegetable spring rolls also I sell other breakfast combo’s such as
silog meals.
- The bills, gas, supplies, utensils, ingredients.
- I based on my competitors pricing strategies’.
- I will possibly do additional fees for deliveries for their location and other requests from my
customers.
A.3 Eatery
Name of Business: LADAN ALMUSALAN
Location: Bignay Valenzuela
Business Owner’s Name: Renalyn Ladan
Picture A.3 shows their goods on a daily Picture A.3.2 Online interview thru
basis. messenger
QUESTIONS:
5
- Usually breakfast foods.
- The rent for the store, electricity bills, water bills, transportations, prices of my supplies.
- It involves absorbing the total expense of production and adding only the small amount to it.
- Determine the cost of my products delivery for my store, then tack on a markup to turn a
profit.
A.4 Eatery
Name of Business: Averon’s Eatery
Business Owner’s Name: Cammile Averia
Picture A.4 Shows their goods on a daily basis. Picture A.4.2 Online interview thru
messenger
QUESTIONS:
6
- Regular breakfast menu
- The demand, Customer’s environment, Product shelf life.
- In my Business providing the goods and offerings for a discounted initial cost.
- Varying a product or service's price based on the buyer's place of residence
A.5 Eatery
Name Of Business: Rose Lutong Ulam
Business Owner’s Name: Rose Cordovilla
Picture A.5 shows their goods on a daily Picture A.5.2 Online interview thru messenger
basis.
7
QUESTIONS:
- Filipino’s Staple foods
- The market, the competition, and the target audience and most importantly is the inflation
rate.
- My business bases its prices on those of its competitors. My objective is to entice my target
market to choose my items over those of my rivals.
- Varying based on my product or service's pricing according to the buyer's location. Shipment
expenses, local taxes, market competition, or willingness to pay are frequently reflected in the
altered pricing.
8
B. Neighborhood Bakery
B.1 Neighborhood Bakery

Name of Business: MaryBen Breadhouse
Business Owner’s Name: Mary Razon
Picture B.1 Picture of the store
9
QUESTIONS:
- Breads, cakes.
- Supplies, equipment, utensils, inflation rates those components are my basis for my pricing
method.
-It varies according to the state of the market and the actual supply and demand.
- Since my customers are typically found on my store's grounds, I can readily adjust to the
surroundings.

Name of Business: Edgar’s Bakery
Business Owner’s Name: Edgar Mulles
10
QUESTIONS:
- Bread and Pastries, canned goods, noodles etc.
- Based on market prices, product life shelf, employee wages and other things that need to run
this business.
- Entails lowering my prices relative to those of my competitors in order to draw in bargain

shoppers.
- Examine the products' demand in different locations. I can choose which geographic markets
to enter and what price strategy to employ by identifying the locations of potential customers
who would be most interested in my products.

Name of Business: Faith’s Bakery
11
Location: Grande Vita Bignay Valenzuela
Business Owner’s Name: Faith Ezekiel Ranjo
QUESTIONS:
-Breads, loafs, buns
- Equipment, Supplies, Bills, Wages for my bakers.
- Depending on the prizes of ingredients in making breads.
- We do deliveries to nearby customers and charge them additional fees for delivery.
Name of Business: Bagumbong’s Bakery
Location: Bagumbong Caloocan
12
Business Owner’s Name: Rachelle Carilo
QUESTIONS:
- Breads, Coffee, Cakes, Ice cream, different kinds of bread spreads
- Number of supplies, Bills, Prize of my raw supplies.
- Considering the profit and then I will add all the expenses then I will decide to the prize.
- By doing delivery service but it need that we know the location of the customer.

Name of Business:
13
Location: Becona Bignay
Business Owner’s Name:
QUESTIONS:
-Pandesal, yema spread, peanut butter, margarine, butter, coco jam, strawberry jam
- Considering the economic condition of customers and prevailing in the market while fixing the
prices.
- Adding a small interest to each product’s based on its capital.
- My customers are walk-in so there’s no problem in locations nut if there’s a issue I think I will
reach my services to them.
14
C. Online Vendors (Various Products)

C.1 Onlive Vendor
Name of Business: Bouquet By Iza
Picture C.1 products that sell online. Picture C. 1.1 Online interview thru
messenger
15
Online Seller’s Name: Raiza F. Nacion
QUESTIONS:
- Bouquets
- The materials that used and the process of making in every bouquet.
- My pricing depends on the size, beauty and customization, and it's extra when placing a rush
order
- My pricing is adapted depending on the desired design of my clients.
16
C.2 Onlive Vendor
Name of Business: KEITHS’ BOTIQUES AND ACCESSORIES
Online Seller’s Name: Keith Arieta
messenger
QUESTIONS:
- Accessories and Bags
17
- Pricing decisions in business operations are influenced by factors such as cost of production,
competition, target audience, market conditions, desired profit margin, and perceived value of
the product or service.
- Businesses can use a variety of strategies for effective pricing decisions such as cost-based
pricing, value-based pricing, competitive pricing, and dynamic pricing. They can also use price
skimming and penetration pricing strategies, depending on the nature of their product or
service, the market, and their business objectives.
D. How do you adapt the pricing strategy based on the location, clientele, etc.
- Consumer behaviour impacts pricing decisions as businesses analyse consumer demand,

purchasing patterns and price sensitivity to set prices. If consumers deem a product valuable
and unique, the price may be higher. Conversely, if a product is commonplace or non-essential,
consumers will expect lower prices.
C.3 Onlive Vendor
Name of Business: Joymie Online Resells
Location: Bagumbong Caloocan City
Online Seller’s Name: Joymie Sibayan
Picture C.3 product that sells online. Picture C. 3.1 Online interview thru
messenger
18
QUESTIONS:
- Chocolate, foods, etc.
- Based on my supplier price.
- The pricing where two or more similar products are sold together for one price.
- I adapt those situations by knowing their request and complaints and I make decision to solve
those problems.
C.4 Onlive Vendor

Name of Business: Jessel Ol’Shoppe
19
Online Seller’s Name: Jessel Eyas
messenger
QUESTIONS:
- Appliances, Furniture
- Based on my supplier and also on my customer willingness to pay.
- I need to be well aware of the demands, problems, and motivations of my target market in
order to determine value-based prices.
- It cost the handling fee, shipping fee and others customers request to adapt in those
situations.
20
C.5 Onlive Vendor

Name of Business: STOP & SHOP
Location: Disiplina Village
Picture C.5 products that sell online. Picture C. 5.1 Online interview thru messenger
Online Seller’s Name: Renalyn Myrna Villamor
QUESTIONS:
- Croptops, formal dress, pants, shorts
- Mostly I based on reseller prices to gain more customers.
21
- Bundle pricing is when a business sells multiple products or services together at a discounted
cost. Bundle pricing has the advantage of increasing customer loyalty and sales while providing
customers with greater value.
- Adding shipping fees for customers’ orders, shipping and handling charges.
D. Street food Vendor
D.1 Street food Vendor

Name of Business: KEN’S TAKOYAKI
Vendor’s Name: Glenard Panganiban
Picture D.1 Varieties of foods they serve
QUESTIONS:
- Takoyaki, pizza.
22
- The prices of our supplies, bills, and other store expenses.
- Adding a little percentage of original supply the sell it to the costumers.
- Additional fees for delivery.
Name of Business: Sip and Bites
Vendor’s Name: Joel Panganiban
QUESTIONS:
- Fries, teas.
23
- Inflation rates, supplies demand, gas.
- Considering the prices of my ingredients for my products then adding interest for my financial
gain.
- It depends on the location where I be selling my products.
Name of Business: N/A
Location: Punturin/Bignay Valenzuela
Vendor’s Name: Rey Samantilla
QUESTIONS:
What type of product do you sell/offer?
-Proben, chicken skin, isaw.
24
- The amount I sell and the expenses incurred for shipping and other related costs are variables.
- We set our prices based on the financial strength of our customers and arrange our products
at reasonable prices.
- The way of selling my products is by peddling from crowded places so I don’t have problems in
the location of my customers.

Location: Northville 2 Bignay
Vendor’s Name:
QUESTIONS:
What type of product do you sell/offer?
- Various Street foods.
25
- It depends on how much my supplies in the market and also, I consider the transpo and other
expenses
- Pricing my products like other street food vendors like me.
- My cart is going from house to house or place to place so my consumers are mostly random
people and preferred to buy in my business.
Vendor’s Name:
QUESTIONS:
- Barbeque
- It depends on how much my products on the markets.
26
- Summing all my products then adding a little bit more price than the original prices.
- My business is homebased so my consumers are walk-in and preferred to buy in our place because of
their convenience
E. Service Type Business
27
E.1 Service Type Business
Name of Business: Neggieboyy Cuts
Business Owner’s Name: Nads Nazareno
Picture E.1 Types of service they offered Picture E.1.1 Online interview thru
messenger
QUESTIONS:
- Barber Shop
- Consider the equipment’s, tools for haircuts, tools for hair cares and other stuffs that needs in
my business and then I decide on what prize should I set on my services.
28
- Price skimming methods because of the quality of my services.
- Based on their type of service of what they want and I offer my service usually in my place.
Name of Business: Luv-A-Hon
Location: Bagumbong Caloocan City
Business Owner’s Name: Lineth Amero
messenger
QUESTIONS:
- Laundry Shop
29
- In terms of water billings, electricity billings, taxes, detergents for washing clothes. Summing
those factors can help me to set prices on a right fair price.
- Since I offer services, my method is setting value price based on the service of this business
provides.
- If consumers deem a product valuable and unique, the price may be higher.
Name of Business: Sasa’s Touch
Location: Lawang Bato Valenzuela
Business Owner’s Name: Nerissa Ito
Picture E.3 Types of service they offered
QUESTIONS:
30
- Salon but is homebased.
- Location, Local Economy, Demand.
- Begin with cheap pricing instead of high ones, and as your business grows, you may
progressively raise them. In the same way that might persuade a customer to try your services,
you're offering a discounted service to foster customer loyalty.
- I can charge a high price for my services due to the perceived value that my salon possesses.
Business Owner’s Name: Lloyd Reyes
messenger
31
QUESTIONS:
- Manicure, pedicure
B. What are the factors involved in your pricing decisions
- First on the nail care, tools and my work, those things that can help me to setting price on my
services.
- Based on my clients demands for my service if the customers want something that may not
included in my set or service I will set additional fees to that service.
- I will charge the customer for additional fees for their locations or for home services
Name of Business: Oyen Pulido Hair and Makeup Studios
32
Location: Bagumbong Caloocan
Business Owner’s Name: Oyen Pulido
Picture E.5 Types of service they offered
QUESTIONS:
-Salon
B.What are the factors involved in your pricing decisions?
- Competitors Salons, Pricing Demographic, employees’ wages, taxes, bills and tools &
equipment.
- Building a stronger brand image for my parlor than your competitors.

In the event that I have a strong brand reputation within the community, my ideal target
market—in this example, high-earners—will choose our services above others, regardless of
cost or quality.
- I may able to charge a premium cost for customers that is not reach in my parlor locations.
2. Compare and Contrast
Compare and contrast the pricing strategy implored in each. Prepare a tabulated form of your
33
observation based on each platform established.
Tabulated form of observation based on each platform established.

A. Type of product: Food
CHANNEL NAME OF PRODUCT PICTURE OF THE PRODUCT PRICES

INTERMEDIARY
Sari-sari Store Chicharron ni Mang Juan ₱7/each
Convenience Store Chicharron ni Mang Juan ₱9/each
Supermarket Chicharron ni Mang Juan ₱6.50/each
34
B. Type of product: Non-Food
CHANNEL NAME OF PRODUCT PICTURE OF THE PRODUCT PRICES

INTERMEDIARY
Sari-sari Store Palmolive Shampoo ₱7/each
Convenience Store Palmolive Shampoo ₱10/each
Supermarket Palmolive Shampoo ₱6/each
C. Type of Service: Laundry
35
CHANNEL
NAME OF ESTABLISHMENT PICTURE OF SERVICE PRICES
INTERMEDIAR
Y
Washing Selection:
₱60/per load
Laundromat Luv-A-Hon Duration: 30
minutes
Drying Selection:
₱70/per load
Duration: 40
minutes
Additional:
₱10/per 10
minutes
Washing Selection:
Laundry Shops Lavabendo ₱65/per load
Duration: 30
minutes
Drying Selection:
₱70/per load
Duration: 36
minutes
Additional:
₱15/per 10
minutes
36
1. Differences and /or similarities of the pricing approach used in each platform
- Differences
o Pricing strategies can change greatly between platforms. Each businesses
pricing strategy differences influenced by a number of factors, including its
industry, the state of the market, its target customers, and its overall
business plan. Various pricing strategies may be adopted by platforms,
depending on factors such as their objective, rivals, and nature of services or
goods provided. It is imperative for businesses to consistently assess and
modify their pricing tactics in order to maximize profits and market share.
- Similarities
o Platform-specific pricing strategies frequently aim to balance client
attractiveness and sustainable revenue growth while optimizing earnings.
Consumer behavior, rival pricing, supply and demand, and other variables all
affect market-driven decisions. Platforms take into account competitive
positioning, perceived value, pricing factors, and adaptability to make sure
users feel they are receiving value for their money. It is typical to be aware of
and pay for the expenses related to delivering a good or service. Pricing
strategies used by rivals contribute to keeping the market competitive
without lowering profitability. Pricing plans that are successful must be
flexible enough to adjust to shifting consumer preferences and market
conditions.
2. Advantages and disadvantages of the difference/similarities of prices used in each

channel
- Advantages of similarities of prices used in each channel
o Similar pricing methods can provide a number of advantages for different
types of businesses. They make decision-making easier, bring stability to the
37
market, foster customer confidence, maintain competitive parity, and result

in more effective pricing. By preventing any one company from having a
disproportionate advantage focused only on pricing, these tactics assist both
consumers and companies in making educated purchase decisions. They also
save time and money by lowering the requirement for ongoing market
research and pricing modifications. Similar pricing techniques also provide
price comparisons across companies for customers, enabling them to make
better-informed purchases. All things considered, these tactics support a
more equitable and competitive market, enabling companies to successfully
compete and hold a competitive advantage.
- Disadvantages of similarities of prices used in each channel.

o Similar pricing tactics used by several companies might have a number of
disadvantages. These include a loss of uniqueness, a decrease in adaptability,
a muddled consumer base, a decline in profit margins, a suppression of
innovation, and market saturation. Similar pricing strategies make it difficult
for companies to set themselves apart from rivals, which can result in a price
war where the only thing giving competitors an advantage is lower prices,
which eats away at profit margins. Comparable pricing can also limit a
company's ability to adapt to changes in the market, making it more
challenging to raise or lower prices without upsetting clients or damaging
sales. The closeness of pricing may also mislead consumers and raise
accusations of cooperation or lack of competition. Furthermore,
concentrating on matching the pricing of rivals may impede innovation,
making it more difficult to create new goods or services that could support
greater costs and larger profit margins. Lastly, industry growth may be
restricted by market saturation, which makes it challenging for one business
to differentiate itself. These disadvantages highlight how important it is to
38
carefully consider how similar pricing strategies may impact a business's

ability to compete and maintain long-term profitability.
39

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LADY OF LOURDES HOSPITAL & COLLEGES OF CAYBIGA INC.

15 Gen Luis St. Caybiga, Caloocan, Philippines

A Pricing Strategy Research Paper

Presented to the faculty of the

In Partial Fulfillment of the Degree of

In order to get information on customer behavior and preferences, the procedure

Location: Bignay Valenzuela City

Business Owner’s Name: Olivia Nuqui

A.What type of product do you sell/offer?

- Porridge, fried eggs, fried tofu, vegetable spring rolls.

B. What are the factors involved in your pricing decisions?

C. What pricing method do you usually implore in your strategy?

- By setting my prices low based on my target customers.

Location: Bignay Valenzuela City

Business Owner’s Name: Haydee F. Carlos

B. What are the factors involved in your pricing decisions?

- The bills, gas, supplies, utensils, ingredients.

C. What pricing method do you usually implore in your strategy?

- I based on my competitors pricing strategies’.

Location: Bignay Valenzuela

Business Owner’s Name: Renalyn Ladan

A.What type of product do you sell/offer?

- Usually breakfast foods.

B. What are the factors involved in your pricing decisions?

C. What pricing method do you usually implore in your strategy?

Location: Bignay Valenzuela

Business Owner’s Name: Cammile Averia

A.What type of product do you sell/offer?

- Regular breakfast menu

B. What are the factors involved in your pricing decisions?

- The demand, Customer’s environment, Product shelf life.

C. What pricing method do you usually implore in your strategy?

Location: Bignay Valenzuela City

Business Owner’s Name: Rose Cordovilla

- Filipino’s Staple foods

B. What are the factors involved in your pricing decisions?

C. What pricing method do you usually implore in your strategy?

B.1 Neighborhood Bakery

Location: Bignay Valenzuela

Business Owner’s Name: Mary Razon

Picture B.1 Picture of the store

B. What are the factors involved in your pricing decisions?

C. What pricing method do you usually implore in your strategy?

B.2 Neighborhood Bakery

Location: Bignay Valenzuela

Business Owner’s Name: Edgar Mulles

Picture B.2 Picture of the store

- Bread and Pastries, canned goods, noodles etc.

B. What are the factors involved in your pricing decisions?

C. What pricing method do you usually implore in your strategy?

- Entails lowering my prices relative to those of my competitors in order to draw in bargain

B.3 Neighborhood Bakery

Location: Grande Vita Bignay Valenzuela

Business Owner’s Name: Faith Ezekiel Ranjo

Picture B.3 Picture of the store

-Breads, loafs, buns

B. What are the factors involved in your pricing decisions?

- Equipment, Supplies, Bills, Wages for my bakers.

C. What pricing method do you usually implore in your strategy?

- Depending on the prizes of ingredients in making breads.

Location: Bagumbong Caloocan

Business Owner’s Name: Rachelle Carilo

Picture B.4 Picture of the store