EFFECT OF INNOVATIVE PRICING STRATEGY ON AGRICULTURAL SMALL AND MEDIUM SCALE ENTERPRISES PROFITABILITY IN NIGERIA

Abstract

This study investigates the influence of innovative pricing strategy on the profitability of Agricultural Small and Medium-sized Enterprises (Agri-SMEs) in Lagos State, Nigeria. The study collected data from 190 out of the 253 registered Agri-SMEs in Lagos using a cross-sectional and survey approach. The sample size was calculated using Slovin's technique and modified to include probable attrition. The data demonstrates a strong and statistically significant effect of innovative pricing strategies on the profitability of Agri-SMEs in Lagos State, Nigeria. The finding indicates that the adoption of novel pricing strategies can enhance the financial performance of these enterprises. However, significant limitations must be acknowledged, such as the specific pricing systems under consideration and the conclusions' applicability to a wide range of scenarios. As a result, it is advised that more study be performed to properly examine the intricacies of various pricing strategies and their consequences for the profitability of agricultural small and medium-sized companies (Agri-SMEs) in various areas of Nigeria. This enlarged analysis might give more detailed insights into the intricate dynamics of pricing strategies in the agricultural sector, resulting in more targeted and effective tactics for improving the financial viability of Agri-SMEs across the country.