Economy Pricing Strategy and Customer Retention – An Analysis

Abstract

The new global economy is growing more and more focused on the consumer in the
twenty-first century. One of the key relationship marketing ideas focused on creating and
preserving a long-term customer-hospitality industry connection is customer retention. Since
the majority of hospitality businesses began to experience discernible customer loss and the
difficulty and high expense of gaining new customers, the importance of customer retention
has risen. In contrast to a price strategy, which would indicate how hotels might reach their
pricing targets, a strategy is involved with determining how a hospitality business will achieve
its goals. For hospitality leadership, developing successful price strategies is essential, thus a
pricing plan needs to be established and developed well in advance. The research aims to
measure the relationship between pricing strategies (economy pricing) and customer retention
in international hotels in Kurdistan. Though, based on the findings, the current research
confirmed that pricing strategies (economy pricing) had a positively associated with customer
retention.