Pricing Innovation Strategy Impact for Telecommunication Industry Companies in Congo Brazzaville Based on Elasticity Analysis
[1]
Ngomah Madgil Don Stenay Junior, Department of Management, Wuhan University of Technology, Wuhan, China.
[2]
Ngomah Le Temps Décide Amour Prestige, Department of Management, Wuhan University of Technology, Wuhan, China.
[3]
Thierry Belinga, Department of Economics, Québec University, Montréal, Canada.
[4]
Jean Félix Makosso, Department of Sciences and Communication Skills, Marien Ngouabi University, Brazzaville, Congo.
[5]
Gertrude Ndeko, Department of Sociology/Population and Development, Marien Ngouabi University, Brazzaville, Congo.
This research uses elasticity analysis to evaluate the impact of pricing innovation on the commercial performance of telecommunication industry Companies in Congo Brazzaville. As a first step, this study develops a refined analysis grid of product innovations according to their content, their "localization" in the company's offer or organization, and the degree of impact they introduce. It has been found that the innovation of telecommunications companies is based on the complicity product price. An innovation products and prices on the market, causing the increase of subscribers, and causing a buying behavior calling them to a high degree of consumption. This triggers an increase in production, therefore increase in sales or the financial indicator, thus encouraging growth on the income rates profitable to businesses. That is why this work has identified the determinants of innovation produced within the telecommunications companies in Congo Brazzaville. This is based on a joint investigation carried out mainly by 4 companies, notably MTN, AIRTEL, WARID and AZUR, which we found more productive and representative in terms of innovation factors and performance indicators. The quantitative data was collected from 2009 to 2016 through the Regulatory Agency of Telecommunication in Congo, convenience sampling was then employed to select four (4) companies. The quantitative data generated from this study was analyzed using Eviews.
Pricing, Strategy Innovation, Elasticity Analysis
[1]
Simon. H «Price Management» Amsterdam, North Holland Elsevier Science Publishers 1989.
[2]
Dean. J «Managerial Economics» Prentice Hall 1949.
[3]
Helfer J. P, Orsoni. J «Marketing» Vuibert, Janvier 1988. Hise R.
[4]
Shanklin W. L, Ryans J. K «Essentials of Marketing High Technology Processing and Pricing» Editions D. C Health and Company 1987.
[5]
Nagle. T «The Strategy and Tactics of Pricing» Englewood Cliffs N. J Prentice Hall 1987 (p 152-153).
[6]
Winckler. J «Pricing for Results» Heinemann London 1983.
[7]
Schoell W. F, Guiltinan J. P «Marketing, Contemporary Concepts and Practises» Allyn and Bacon 1990.
[8]
Simon. H «Dynamics of Price Elasticity and Brand Life Cycle: An Empirical Study» Journal of Marketing Research vol 16 Novembre 1979 (p 439-452).
[9]
Boston Consulting Group « Les Mécanismes Fondamentaux de la Compétitivité » Editions Hommes et Techniques 1982.
[10]
T. Wright «Factors Affecting the Cost of Airplanes» Journal of Aeronautical Science vol 3 n° 4 (p 122-128.
[11]
R. P. Jayani Rajapathirana, Yan Hui. Relationship between innovation capability, innovation type, and firm performance. Journal of Innovation & Knowledge 3 (2018) 44–55.
[12]
Ismael P. Solera, Germán Gémarb. The impact of family business strategies on hotel room prices. European Journal of Family Business (2016) 6, 54-61.
[13]
Rosen, S. Hedonic prices and implicit markets: Product differentiation in pure competition. Journal of Political Economy, (1974). 82 (1), 34-55.
[14]
Josef Taalbi. What drives innovation? Evidence from economic history. Research Policy 46 (2017) 1437–1453.
[15]
Williamson, O. E., 1975. Markets and Hierarchies: Analysis and Antitrust Implications. Free Press, New York, NY.
[16]
Marcus Holgersson, Ove Granstrand, Marcel Bogers. The evolution of intellectual property strategy in innovation ecosystems: Uncovering complementary and substitute appropriability regimes. Long Range Planning 51 (2018) 303-319.
[17]
Anant Deogaonkar, Gaurav Washimkar. Impact of changes in Service Sector in shaping Business and Society Telecommunication Industry. Procedia Economics and Finance 11 (2014) 495–499.
[18]
Kiran Mazumdar-Shaw. Leveraging affordable innovation to tackle India’s healthcare challenge. IIMB Management Review (2018) 30, 37–50.
[19]
Fred Gault. Defining and measuring innovation in all sectors of the economy. Research Policy 47 (2018) 617–622.
[20]
Deonir De Tonia, Gabriel Sperandio Milanb, Evandro Busata Sacilotob, Fabiano Larentis. Pricing strategies and levels and their impact on corporate profitability. Revista de Administração 52 (2017) 120–133.
[21]
Monroe, K. B. (2003). Princing making profitable decisions (3rd Ed.). New York: McGraw-Hill/Irwin (international edition).
[22]
De Toni, D., & Mazzon, J. A. (2013). Imagem de prec¸o de produto: proposicãode um modelo conceitual. RAUSP – Revista de Administra¸cão da USP, 48 (3), 454.
[23]
Simon, H., Bilstein, F. R., & Luby, Frank. (2008). Gerenciar para o lucro, nãopara a participa¸cão de mercado. Porto Alegre: Bookman.
[24]
Nagle T. T., Hogen J. H. The strategy and tactics of pricing: a guide to growing more profitably. Beijing: Huaxai Publishing House; 2008. P. 1-70.
[25]
Su X. Intertemporal pricing with strategic customer behavior. Management Science 2007; 53 (5): 726-741.
[26]
Jieyu Lei, Junxiu Jia, Tao Wu. Pricing Strategies in Dual-online Channels Based on Consumers’ Shopping Choice. Procedia Computer Science 60 (2015) 1377 – 1385.
[27]
Yu Zhou, Shigehiro Serizawa. Strategy-proofness and efficiency for non-quasi-linear and common-tiered-object preferences: Characterization of minimum price rule. Games and Economic Behavior 109 (2018) 327–363.
[28]
Tsion Taye Assefaa, Miranda P. M. Meuwissenb, Alfons G. J. M. Oude Lansink. Price risk perceptions and management strategies in selected European food supply chains: An exploratory approach. NJAS - Wageningen Journal of Life Sciences 80 (2017) 15–26.
[29]
Tsung-Yueh Lu, Shu-Li Wangb, Mei-Fang Wuc, Feng-Tsung Cheng. Competitive Price Strategy with Activity-Based Costing Case Study of Bicycle Part Company. Procedia CIRP 63 (2017) 14–20.
[30]
Doo Ho Lee. A note on the optimal pricing strategy in the discrete-time Geo/Geo/1 queuing system with sojourn time-dependent reward. Operations Research Perspectives 4 (2017) 113–117.
[31]
Hinterhuber, A., & Liozu. (2014). Is innovation in pricing your nest source of competitive advantage? Business Horizons, 57 (3), 413–423.
[32]
Nagle, T. T., & Hogan, J. E. (2007). Estratégia e Táticas de Pre¸co – Um Guiapara Crescer com Lucratividade. São Paulo: Pearson Education do Brasil, 2007.
[33]
Nagle, T., & Holden, R. K. (2003). Estratégias e táticas de pre¸cos: um guia paraas decisões lucrativas. São Paulo: Prentice Hall.
