The Influence of Pricing Strategy on the Growth of SMEs : A Case Study in Liberia

Sammanfattning: Small and Medium Enterprises (SMEs) play a crucial role in the economic development of any nation. However, due to various challenges, including government policies, cost of production, competition, and market demand, SMEs often struggle to survive and grow. Pricing strategy is one of the critical factors determining SMEs' success. This study examines the influence of pricing strategy on the growth of SMEs in Liberia. This master's thesis aims to investigate  the influence of pricing strategy on the growth of SMEs.  In order to investigate the concepts mentioned above, existing literature was reviewed. Following that, a frame of reference was created in order to further investigate these concepts in relation to the case of Liberia. The study adopts a qualitative approach, using a case study design to explore the pricing strategies adopted by SMEs in Liberia and their impact on business growth. Data were collected through semi-structured interviews with SME owners and managers in different industries in Liberia. The data collected were analyzed using content analysis to identify common themes and patterns in the responses. The study's findings indicate that pricing strategy significantly impacts the growth of SMEs in Liberia. The study found that SMEs in Liberia adopt various pricing strategies such as cost-plus pricing, value-based pricing, and competition-based Pricing. However, the most effective pricing strategy for SMEs in Liberia is competition-based Pricing. The study also found that other factors, such as cost of production, competition, and market demand, influence the pricing strategy adopted by SMEs in Liberia. Furthermore, the study revealed that SMEs face various challenges in implementing pricing strategies, such as a lack of pricing knowledge and skills, poor understanding of customer needs, and inadequate market research.