Question

3. Citigroup, an international financial organization based in Europe has recently established a Finance House in Ghana. It has been grappling with how to set prices for its services in an emerging economy like Ghana. Against this background, you have been appointed as a services marketing consultant to help deal with this issue. Based on this mandate, what critical issues must the group consider in order to be competitive in the pricing of its services and ultimately remain profitable? Justify your recommendations with relevant case studies from the Ghanaian financial services industry

Answer 1

There are different factors which must be considered before determining a price in emerging economy like ghana in respect to different services-

A.it can always be looking for the competitors who are operating in the same industry and prices of these competitor should be matched

B. It can also be judging by other emerging markets which have similar growth and similar structure as of Ghana.

C. Consideration of the inflation rate and the interest rates should be provided, because it will help the company in determining of the value of the disposable income and consumer willingness to spend on the services.

D. Prices should also been fixed after taking into account the rules and regulation of the government

E. Emerging markets are highly underpenetrated, so prices which are lower in nature will help the company in gaining more of the market share.

These are the factors which can be kept in mind by Citigroup, while determining the prices for it's services in Ghana.