Abstract:
Management faces a strategic pricing dilemma to remain competitive and survive
in an uncertain environment. Uncertainty is prevalent all over the globe. The study
used the Zimbabwean context with hyperinflation, volatile exchange rates and
multicurrency. The research objective was to assist management in volatile,
uncertain environments with a guide on factors to consider in strategic pricing.
The researcher undertook a qualitative study by conducting twelve semistructured
interviews. The researcher used thematic analysis to get themes
derived from codes through ATLAS.ti. The most prevalent theme amongst the
respondents was market assessment, including codes like competition, buying
behaviour and disposable income. In addition to hyperinflation, volatile exchange
rates and multicurrency, the study found that competition, customers and costs
are factors to consider in strategic pricing in the food retail sector under
uncertainty in Zimbabwe. The food retail sector became more attractive during
the economic downturn in Zimbabwe because consumers spent more on
essentials. The study highlights different types of pricing strategies. The study
results revealed that volatile exchange rates and hyperinflation should be
considered in the same light when assessing factors in strategic pricing in an
uncertain environment. There is bi-directional causality between hyperinflation
and volatile exchange rates. Management’s attempts to curb uncertainty risk by
doing speculative activities further exacerbated hyperinflation and uncertainty.
Speculation and discretion were applied by management during decision-making
in a volatile and uncertain environment. Leadership requires a stable base
currency and engagement with suppliers for lower fixed prices to achieve
strategic pricing sustainability. Cost containment contains the overall price
increase. Management flexibility, quick decision-making, and integrity came out
as learnings for top management in uncertain and volatile environments
