Pricing Strategy and Sales Performance: Evidence from Small and Medium Enterprises in Onitsha, Anambra State

This study examines the influence of pricing strategy on the sales performance of small and medium enterprises (SMEs) in Onitsha, Anambra State, South East Nigeria. Onitsha hosts one of the largest commercial markets in West Africa, making it a uniquely relevant context for studying pricing dynamics in a highly competitive trading environment. Many SMEs in this region rely on intuitive rather than structured pricing approaches, which may limit their competitiveness and profitability. A descriptive research design is adopted, with primary data collected from 250 SME owners and managers selected via purposive sampling. The structured questionnaire covers penetration pricing, competitive pricing, cost-plus pricing, and psychological pricing strategies. Multiple regression analysis is used to determine the relative contribution of each pricing approach to sales performance. The study also explores how market structure and customer price sensitivity moderate the pricing-performance relationship. Preliminary results indicate that competitive pricing and psychological pricing exert the strongest influence on sales volume among Onitsha traders. The research further reveals that many SMEs are unaware of formal pricing frameworks, underscoring the need for targeted business education programmes. Findings will benefit SME owners, trade associations, and policy makers in designing interventions that strengthen the commercial competitiveness of informal and semi-formal businesses in South East Nigeria. The study fills a contextual gap in SME marketing literature specific to high-volume trading environments. Keywords: pricing strategy, sales performance, SMEs, Onitsha, competitive pricing