Dr. Ibn Kailan Abdul-Hamid
The recent appreciation of the Ghana Cedi has reignited public debate about pricing practices among businesses operating in Ghana. Consumers, observing the strengthening of the local currency and reductions in fuel prices, are increasingly calling for corresponding price cuts across goods and services. This expectation, while fair from the consumer’s perspective, introduces a complicated dilemma for businesses, many of which are still recovering from the economic shocks of the Cedi’s previous depreciation, inflationary pressures, and supply chain disruptions.
This article argues that marketing offers strategic tools that businesses in Ghana can deploy to manage the complexities of pricing in this new economic climate. Rather than relying solely on financial or operational rationales for price decisions, firms can turn to marketing for insights into value perception, customer engagement, and brand positioning to guide more sustainable and strategic responses.
The Strategic Role of Price in Marketing
Price is not merely a reflection of cost but a core element of a firm’s value proposition and brand strategy. In marketing theory, price serves as a signal of quality, positioning, and brand equity. Products positioned as premium offerings may not benefit from price reductions, as this could dilute brand value or alter consumer perceptions. Conversely, mass-market products may be more sensitive to pricing changes and require different strategies.
Businesses must, therefore, engage their marketing departments when setting or revising prices. Marketing professionals possess the expertise to assess consumer expectations, analyze competitive positioning, and design pricing strategies that align with brand objectives. In the current economic context, this collaboration becomes even more critical.
Value-Based Alternatives to Price Reductions
While consumers are justified in expecting relief from high prices during currency appreciation, immediate price reductions may not be feasible for all businesses. Many firms still face elevated costs from earlier inflation, imported raw material expenses, and accumulated debts incurred during periods of currency instability. Reducing prices too quickly could compromise profitability or disrupt long-term sustainability.
Marketing offers alternative strategies rooted in value delivery. Rather than cutting prices, firms can offer:
Product bundling Combining multiple products at a discounted collective price can create perceived value without altering unit prices.
Bonus quantities
“Buy one, get one free” or “extra 20%” promotions can help customers feel they are receiving more for their money.
Loyalty rewards Implementing or enhancing loyalty programs can deepen customer relationships and increase perceived brand value.
Promotional offers Time-limited discounts or promotional campaigns tied to currency strength can create goodwill and stimulate demand without permanent price changes.
These strategies align with the marketing principle that perceived value—not just price—drives consumer behavior.
The Importance of Communication and Stakeholder Engagement
Effective communication is essential in managing customer expectations during economic transitions. Many customers are aware of macroeconomic indicators such as exchange rates or fuel prices, but may not appreciate the full scope of a business’s cost structure. Operational costs—including rent, wages, taxes, import duties, and financing—may not decline in tandem with currency appreciation.
In this context, transparent communication becomes a strategic asset. Businesses can use various channels—social media, public statements, customer newsletters, and in-store messaging—to explain their pricing rationale.
Marketing plays a key role here by crafting narratives that resonate with customers, educate them about economic realities, and maintain trust.
Stakeholder engagement should also include suppliers, distributors, and regulators. Coordinating with these actors can help businesses better manage cost pressures and explore collaborative solutions to enhance efficiency and affordability.
Long-Term Considerations
Building Brand Equity Through Fairness and Consistency
Pricing decisions made during currency appreciation periods can have long-term implications for brand equity. Customers remember how businesses respond in times of economic relief just as they do during crises. Brands that are perceived as fair, responsive, and transparent are more likely to retain customer loyalty and build reputational capital.
Moreover, consistency in strategic pricing—not reactive changes driven solely by short-term pressures—supports sustainable growth. Businesses that focus on long-term brand positioning, customer relationships, and value creation are better equipped to weather economic fluctuations.
Conclusion
The appreciation of the Ghana Cedi has brought renewed attention to the relationship between macroeconomic conditions and business pricing strategies. While consumer demands for price reductions are understandable, businesses must respond thoughtfully, balancing operational realities with customer expectations.
Marketing provides a strategic framework for addressing this challenge. By leveraging value-based pricing alternatives, engaging in transparent communication, and aligning pricing with brand positioning, firms can navigate these pressures without compromising long-term viability. In doing so, they not only protect their bottom line but also reinforce their commitment to customer satisfaction and market integrity.
Dr. Ibn Kailan Abdul-Hamid
Head of Marketing Department
University of Professional Studies, Accra
ikabdul-hamid@upsamail.edu.gh
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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
