Abstract:
Price is a very important part of the marketing mix as it can affect both the supply and demand of the firms’
products. Since pricing strategies influence has an impact on market share, performance and growth of the
firm, every firm has its separate pricing policy or strategy for its products. This study therefore sought to
examine the effect of pricing strategy on growth of selected hotels in Nyeri County, Kenya. The study was
anchored on Ansoff matrix; 4C’s marketing model and Unique Selling Proposition. The study used descriptive
research design. The study used questionnaire as the primary research instruments. The researcher used
Cronbach alpha Coefficient to assess reliability of data using. The target population for this study was the 57
respondents from selected hotels within Nyeri County. A self-administered, questionnaire was used to collect
data from the target respondents. Data analysis results generated using SPSS version 21 was presented in
form of frequency tables. Bivariate Linear Regression results indicated that price had positive and statistically
significant effect on hotel growth. The study recommends the hotel managers to review their prices regularly
without compromising quality. In addition, hotels should come up with criteria that should ensure
communication reach all the potential customers effectively. Future research should focus on other
marketing mix variables such as promotion, place and product to establish the effect on growth of hotels.