Effect of Product Attribute and Pricing Strategy on Multinational Firms Competitiveness

Abstract

In today‘s dynamic and turbulent environment, organizations are increasingly entering into the international market to sustain competitive advantage and explore special skills and knowledge and the need to improve their performance. This study examined how competitiveness could be achieved using product attributes and pricing strategy in Nigerian multinational firms. The survey research design was adopted. A structured questionnaire was employed in collecting data from 313 respondents in Nestle Nigeria Plc, Unilever Nigeria Plc, and P.Z. Cussons Nigeria Plc, which was obtained through Raosoft sample estimator at 95% confidence level and 5% error margin using selected multinationals in fast-moving consumer goods. Categorical regression was used to determine the effect of product attribute and pricing strategy on multinational firms‘ competitiveness in Nigeria. The study revealed that product attributes and pricing strategy have positive, significant, and joint effects on multinational firms‘ competitiveness with coefficient and p-value of β1 =0.288 (p-value<0.000) and β2 =0.289 (p-value<0.000) at F-stat=67.795 (0.000) and adj. R2 =0.381. Therefore, it is concluded that competitiveness can be achieved using product attributes and pricing strategy. It is recommended that firms place greater emphasis on their products‘ attributes and pricing to improve their competitiveness posture.