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Psychological Pricing and the Performance of Small and Medium Tourism Enterprises (SMTEs) in Arusha City

Despite the contribution that the Small and Medium Tourism enterprises have in the development of tourism Industry and in the country’s Gross Domestic product (GDP), the performance of these enterprises is still poor and questionable. The study focused on determining the relationship between psychological pricing in terms of odd even pricing and prestige pricing and the performance of Small and Medium Tourism Enterprises located in Arusha city. Purposive sampling was employed to select key respondents who were participants in ensuring data collection activity is successful. The study also used self-administered questionnaires to collect relevant data to answer the research objectives. Linear regression analysis was used to find out the existing relationship between psychological pricing (Odd even pricing and prestige pricing) and the performances of Small and Medium Tourism Enterprises in terms of sales growth. The results revealed that prestige pricing and odd even pricing are significantly related to sales growth of Small and Medium Tourism Enterprises with p value (p=0.000). Therefore, prestige pricing and odd even pricing are the key determinants of performances of Small and Medium Tourism Enterprises in terms of sales growth. The study finally recommended that the management of Small and Medium Tourism Enterprises should see the possibility of using psychological pricing as a strategy to price their tourism products to improve the performance in terms of sales in Tanzania.

Pricing, Psychological Pricing, Performance, Small and Medium Tourism Enterprises (SMTEs)

APA Style

Vitales Joel Kabonda, Salum Matotola, Awadhi Titu Mussa, Shabani Hamisi Mfanga. (2023). Psychological Pricing and the Performance of Small and Medium Tourism Enterprises (SMTEs) in Arusha City. International Journal of Hospitality & Tourism Management, 7(2), 49-55.

ACS Style

Vitales Joel Kabonda; Salum Matotola; Awadhi Titu Mussa; Shabani Hamisi Mfanga. Psychological Pricing and the Performance of Small and Medium Tourism Enterprises (SMTEs) in Arusha City. Int. J. Hosp. Tour. Manag. 2023, 7(2), 49-55. doi: 10.11648/j.ijhtm.20230702.11

AMA Style

Vitales Joel Kabonda, Salum Matotola, Awadhi Titu Mussa, Shabani Hamisi Mfanga. Psychological Pricing and the Performance of Small and Medium Tourism Enterprises (SMTEs) in Arusha City. Int J Hosp Tour Manag. 2023;7(2):49-55. doi: 10.11648/j.ijhtm.20230702.11

Copyright © 2023 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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