CHAPTER II
DATA PRESENTATION AND ANALYSIS
This chapter presents and analyzes the quantitative data collected from SMEs regarding their
business characteristics and pricing behavior. A total of 52 respondents participated in the
survey, providing insights into their demographic profiles and the pricing strategies they employ.
The data were processed using Microsoft Excel, employing descriptive statistical tools such as
frequency, percentage, mean, and standard deviation. Each demographic variable is individually
presented with a frequency distribution table, followed by a detailed interpretation based on
observed trends. For Likert-scale statements, mean and standard deviation values are analyzed to
understand perceptions and strategies across pricing dimensions.
2.1 Demographic Profile of Respondents
A total of 52 SMEs were included in the survey. The demographic variables collected include
ownership type, average revenue, retailer type, years in business, number of employees,
customer segment, pricing strategy goal, and price range. These factors are presented below,
followed by interpretations that contextualize their significance for pricing strategy adoption.
2.1.1 Type of Ownership
Table 1
Ownership Type of Respondents
Type of Ownership Frequency Percentage
Family-owned Business 13 25.0%
Franchise/Chain store 10 19.2%
Partnership 7 13.5%
Sole proprietorship 22 42.3%
Total 52 100%
The data in Table 1 shows that 42.3% of the respondents operate as sole proprietors, followed by
family-owned businesses (25%). This indicates that most SMEs are independently operated,
reflecting strong entrepreneurial ownership. The smaller representation of partnerships and
franchises suggests less formal or shared ownership structures within the surveyed businesses.
2.1.2 Average Monthly Revenue
Table 2
Monthly Revenue Distribution
Revenue Range Frequency Percentage
Less than NPR 100,000 12 23.1%
NPR 100,000 - 200,000 9 17.3%
NPR 200,000 - 300,000 16 30.8%
More than NPR 300,000 15 28.8%
Total 52 100%
Table 2 reveals that a significant proportion of businesses earn between NPR 200,000 and
300,000 monthly (30.8%), with 28.8% earning even more. This implies that most respondents
are generating moderate to high revenue levels, which may afford them greater flexibility in
pricing decisions and promotional strategies.
2.1.3 Type of Footwear Retailer
Table 3
Retail Format
Retailer Type Frequency Percentage
Branded Store 13 25.0%
Retailer Type Frequency Percentage
Local Store 15 28.8%
Online-based 15 28.8%
Street Vendor 9 17.3%
Total 52 100%
Retailer types are evenly distributed between local and online-based stores (each at 28.8%),
while branded outlets comprise 25%. Street vendors account for 17.3%, reflecting the diversity
of retail approaches within the sector. This diversity may influence pricing preferences and the
adoption of digital tools.
2.1.4 Years of Business Operation
Table 4
Business Experience
Years Active Frequency Percentage
Less than 1 year 5 9.6%
1–3 years 20 38.5%
4–7 years 14 26.9%
More than 7 years 13 25.0%
Total 52 100%
Table 4 highlights that nearly 40% of businesses are in their early growth phase (1–3 years),
while only a quarter have over 7 years of experience. This pattern suggests that newer businesses
are highly active in the market, potentially influencing their openness to adopting modern pricing
strategies.
2.1.5 Number of Employees
Table 5
Size of Workforce
Employees Frequency Percentage
1–3 19 36.5%
4–10 22 42.3%
11–20 4 7.7%
More than 20 7 13.5%
Total 52 100%
Table 5 indicates that 78.8% of businesses employ fewer than 10 individuals, underscoring the
micro or small-scale nature of most SMEs in the sample. Smaller enterprises may be more
flexible but could also face constraints in adopting complex pricing technologies or conducting
market research.
2.1.6 Target Customer Segment
Table 6
Customer Focus
Target Segment Frequency Percentage
Low-income 11 21.2%
Middle-income 13 25.0%
High-income 8 15.4%
Mixed 20 38.5%
Total 52 100%
The majority (38.5%) of businesses serve a mixed-income customer base, followed by middle-
income consumers (25%). This suggests that many SMEs are striving to appeal to a broad
spectrum of buyers, which may explain the use of flexible and multi-tiered pricing strategies.
2.1.7 Footwear Price Range
Table 7
Product Pricing Range
Price Range Frequency Percentage
Below NPR 1,000 9 17.3%
NPR 1,000 – NPR 2,500 16 30.8%
NPR 2,501 – NPR 5,000 14 26.9%
Above NPR 5,000 13 25.0%
Total 52 100%
Most businesses sell products in the mid-price range (NPR 1,000–5,000), suggesting a pricing
strategy aimed at affordability and value for money. A quarter also cater to high-end consumers,
reflecting varied market positioning.
2.1.8 Pricing Strategy Goal
Table 8
Primary Pricing Objectives
Goal Frequency Percentage
Attracting more customers 18 34.6%
Building brand image and loyalty 15 28.8%
Competing with other stores 11 21.2%
Maximizing profit 8 15.4%
Total 52 100%
Table 8 shows that most businesses prioritize customer acquisition (34.6%) and brand-building
(28.8%) over profit maximization. These goals indicate a strategic focus on long-term market
engagement and customer retention, rather than immediate revenue gains.
2.2 Descriptive Analysis
This section presents the analysis of pricing-related statements rated by SME respondents using a
6-point Likert scale (1 = Strongly Disagree to 6 = Strongly Agree). The purpose was to
understand the pricing strategies and behaviors adopted by SMEs across different approaches:
cost-based, competition-based, value-based, and psychological pricing. The table below displays
the mean and standard deviation for each statement to assess both the overall level of agreement
and variability in responses.
Table 9
Perceptions of Pricing Strategy and Practices
S.N Statement Mean S.D.
1 I determine my prices by adding a fixed markup over cost. 4.10 0.91
2 I rarely consider market trends or competitor prices while setting the price. 2.50 1.08
3 My pricing decisions are mainly influenced by the cost of goods from suppliers. 4.21 1.02
4 I review my supplier costs before making any price adjustments. 4.42 0.91
5 I monitor competitors’ prices regularly before setting my own. 4.38 1.14
6 My pricing strategy focuses on staying slightly below competitors. 3.83 1.40
7 I frequently match the discounts or offers provided by nearby stores. 3.58 1.42
8 I adjust my prices to remain competitive in the local market. 4.48 1.24
9 I set prices based on what customers are willing to pay. 4.19 1.16
10 I charge more for shoes with better comfort, design, or brand image. 4.06 1.60
11 I assess customer feedback and perceived value when deciding prices. 4.17 1.00
12 I believe product value justifies a higher price even in a competitive market. 3.96 1.53
S.N Statement Mean S.D.
13 I use charm pricing (e.g., setting a price at NPR 999 instead of NPR 1,000). 4.41 1.31
14 I offer occasional discounts to make products seem more affordable. 4.65 1.38
15 I believe prices ending in .99 help boost sales more than rounded figures. 4.02 1.36
16 I use pricing tactics to create a perception of affordability or savings. 4.49 1.39
Interpretation:
The data in Table 9 suggests a high level of agreement with multiple pricing strategies,
particularly those based on psychological and competitive principles. The highest average score
was observed for the statement “I offer occasional discounts to make products seem more
affordable” (mean = 4.65), indicating that promotional pricing is a widely practiced tactic among
SMEs. Similarly, respondents agreed with using psychological pricing methods, such as charm
pricing (mean = 4.41) and pricing to create a perception of affordability (mean = 4.49).
Cost-based pricing also emerged as a dominant strategy. Respondents agreed with statements
like “I review my supplier costs before making any price adjustments” (mean = 4.42) and “My
pricing decisions are mainly influenced by the cost of goods from suppliers” (mean = 4.21). This
suggests that cost considerations remain central to the pricing decisions of small business
owners.
On the competitive side, a majority of respondents monitor competitor prices (mean = 4.38) and
adjust their prices to remain competitive (mean = 4.48), highlighting market awareness and
responsiveness as key traits among the surveyed businesses.
Value-based pricing is moderately endorsed, as shown by mean scores ranging from 3.96 to 4.19.
Respondents showed agreement with setting prices based on what customers are willing to pay
and factoring in customer feedback, though opinions were more varied on justifying higher
prices in competitive markets.
Standard deviations across statements ranged from 0.91 to 1.60, indicating moderate to high
variability in perceptions. This implies that while most respondents follow similar pricing
philosophies, actual practices differ based on business model, market segment, and managerial
preferences.
