Analysis of Product Prices on Sales Performance of Multinational Fast Food Firms Nairobi County Kenya

Abstract

This study examined the analysis of product prices on sales performance of multinational fast-food firms. The independent variables studied included the product price indicators food production, market prices and consumer price. While the dependent variable sales performance had the following indicators profits, market shares and sales revenue. The moderating variable restaurant ambience indicators included spatial layout, interior design and decor, mediating variable included organisation competence indicators; transactional, management and operational. The theories adopted were competitive advantage model and value-percept, the study research design was experimental design was found to be suitable because of the nature of variables and respondents in the questionnaires. The target population being 23 managers and 19930 customers, sample size was 376 consumers and 22 managers, stratified random sampling was used, validity was tested by content and construct validity, reliability was tested by test-retest method and cronbach alpha of 0.75 was obtained. Questionnaires issued were semi-structured, descriptive statistics utilised were standard deviation and mean, inferential statistics applied were regression analysis and correlation. Data was presented through percentages and tables. The product prices had a statistically significant positive influence on sales performance, (ꞵ=0.09, P=0.018), ambience of restaurants has a statistically significant moderating positive influence on performance of sales (ꞵ=0.083, P=0.012) and organisational competence has a statistically significant mediating positive relationship between product prices and sales performance in Nairobi, County Kenya (P=0.023). Government agencies need to formulate a standardised pricing system for the food industry practitioners that ensures quality products are offered at affordable prices to consumers.