Influence of Pricing Strategies on Competitive Advantage Among Charter Airline Operators in Nairobi City County, Kenya
DOI:
https://doi.org/10.53819/81018102t2534Abstract
This study examined how pricing strategies influence competitive advantage among charter airline operators in Nairobi City County, Kenya. The study was grounded in strategic management and competitive advantage theory, integrating Porter’s generic strategies, the Resource-Based View (RBV), and the Dynamic Capabilities framework. The study argued that pricing decisions in the charter aviation sector are not merely operational but form a central component of strategic positioning and long-term competitiveness. Drawing upon existing literature and contextual evidence from Kenya’s aviation industry, this study various pricing strategies, penetration pricing, premium pricing, discriminative pricing and psychological pricing tactics.as mechanisms through which charter airlines can achieve superior performance and subsequently competitive advantage. The theoretical analysis highlights how flexible pricing models enhance customer satisfaction, optimize revenue, and enable market differentiation in a volatile and price-sensitive environment. Moreover, organizational firmographics such as ownership structure and geographical scope moderate how pricing strategies translate into sustainable advantages. The paper concludes that pricing strategies, when aligned with technological innovation and marketing capabilities, can strengthen cost efficiency, brand loyalty, and overall competitiveness. The study contributes to the theoretical understanding of strategic pricing in emerging aviation markets and provides insights for governments, airline managers, stakeholders and policymakers aiming to enhance value creation and market resilience in Kenya’s charter airline industry.
Keywords: Pricing Strategies, Competitive Advantage, Charter Airlines, Aviation Management, Kenya, Penetration Pricing, Premium Pricing, Price Discrimination, Psychological Pricing.
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