Academy of Marketing Studies Journal (Print ISSN: 1095-6298; Online ISSN: 1528-2678)

Abstract

Pricing Orientation of SMEs Auto Repairers Using the Facilities, Transformation and Usage (FTU) Framework

Author(s): Collins Kankam-Kwarteng

The purpose of this study is to empirically validate the contribution of facilities, transformation and usage scale in pricing formation in the auto and vehicle repairs industry in Ghana. Data were collected from 220 SMEs auto and vehicle repairers across the country using convenience sampling technique. Questionnaire for the study involves a measuring scale of the FTU framework and control variables (business age, business size, business form). The study finds that Facilities, transformation and usage (FTU) relate to the pricing orientations of the vehicle repairs industry. Further study results demonstrate that two variables Facilities and Usage are statistically significant in predicting service pricing orientation of SMEs auto repairers with transformation showing a negative relationship after controlling for business age, business size and business form. On originality, this is the first study of this type that contributes to the development of multi-dimensional scale of services pricing in the small and micro auto repairers sector in the Ghanaian context. The study provides players in the industry with deeper understanding of how to develop and establish services pricing scheme in the industry.