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This study aims to investigate how and why retailers and resellers in sample firms of the informal economy set prices and the performance implications for the firm’s pricing efforts.

The author generated their insights through an inductive qualitative study of four organizations operating within the informal economy in the Nigerian retailing sector.

The study found that some organizations within the informal economy set prices in different ways i.e. negotiated pricing and fixed pricing. The contracting criteria between the retailers and resellers determine the pricing strategy. Contractual terms based on relational ties between both facilitate negotiated price-setting, while contractual terms based on non-relational ties promote fixed pricing. The type of price-setting arrangement of the sampled retailer relates to the organization’s performance within its industry. Particularly, the study found that retailers that adopted negotiated pricing performed above the industry average for their product category. In contrast, the retailers that adopted fixed pricing performed below the industry average for their product category.

As far as the author knows, this is the first study to investigate pricing methods within the informal economy. This is also the first known study to investigate price-setting arrangements between retailers and resellers within the informal economy. Another unique contribution of this paper is that it is the first study that focuses on pricing interactions among business-to-business firms within the informal economy. The study contributes to the work on relational embeddedness, relational contracting and informal economies.

Marketing, Brand management, Social media marketing, Digital marketing.

The case can be taught in MBA courses and executive education programs.

Dufil Prima Limited is the manufacturer of Indomie noodles and a market leader in the noodles market of Nigeria that exports products to Congo, Ivory Coast, Ghana and Benin Republic. However, the company has experienced a drop in the market share from 78 per cent in 2010 to 54 per cent in 2015. This drop is largely due to rising competition, Nigeria’s economic downturn and the inability to grow a consumer base in Northern Nigeria. Kenneth Iruonagbe, a social media executive of the company, is responsible for developing a social media and digital marketing strategy for the company to increase the market share position by 16 per cent in the next three years. Kenneth is convinced that a growth in the Northern Nigeria market share is critical for improving the market position in the entire country and facilitating the market penetration in the other four countries. A number of options are being considered to address the current problem. Because of the sharp differences in the consumption habits, cultural values and lifestyles of consumers of noodles in the northern and southern parts of Nigeria, the options may be difficult to implement. Dufil needs to engage in the delicate task of crafting a social media and digital marketing strategy that will be consistent with the values of the Indomie brand and yet prevent the risk of brand confusion and alienation on the part of consumers. The company has one month to roll out its plan.

Highlight how cultural branding through social media applies to consumer markets in Africa Explain the fundamentals of brand building and also introduce the concepts of integrated marketing communication, below-the-line, above-the-line, social media and digital marketing. Explain how social media and digital marketing could be used to move consumers from brand awareness to brand loyalty. Explain how to craft social media and digital marketing strategies that are relevant to countries facing an economic downturn. Highlight the lessons from internationalizing a brand across various African countries.

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CSS: 8: Marketing.

The purpose of this study is to explain how and why firms configure copyright practices when confronted with state-sanctioned laws and informal customs projected by local ethnic or religious communities.

A multi-case inductive study of four film-producing organizations within the Nigerian film industry (i.e. Nollywood) was conducted. Specifically considered were firms that started their operations around the same time with similar founding conditions, experiences, resources and technical competencies. Field observations and multiple rounds of in-depth interviews were conducted to achieve the research objectives.

The study found that firms adopted dominant or hybrid configurations when interacting with informality and formality. Dominant configurations represent the exclusive adoption of informal copyright practices while hybrid configurations refer to the blended use of informal and formal copyright practices. The second set of findings revealed that each firm’s strategic intent affected the type of interactional configuration that unfolded in the firm. Specifically, firms with social intents tended to adopt dominant configurations, whereas firms with socio-economic intents tended to adopt hybrid configurations.

The study implies that firms may profit from strategically focusing on when and in what circumstances to adopt informality. Strategic intents that blend social and economic rationales may secure more positive interactive outcomes from internal and external stakeholders promoting formality and informality.

This study highlights the fact that firms embedded in local religious and ethnic communities use organizational practices to solve social and institutional problems of their members. The copyright practices of these organizations encourage apprenticeship, youth empowerment and entrepreneurship in Nigeria.

To the best of the authors’ knowledge, this is the first study that goes beyond macro-level analysis to investigate the interactional dynamics between formality and informality at the firm, community, and state levels. The study is also first of its kind to use copyright practices as an analytical lens to explore the interaction between informality and formality.

Although African markets have incorporated various selling practices originating from the West, there are still some selling practices that are indigenous to the African people and are widely practised by sellers across the continent. This chapter is an attempt at documenting those indigenous practices with the aim of providing managers, educators and policymakers of the continent with a reference document on what these indigenous selling practices are, how sellers invoke them in the course of transactions and the cultural values that guide these practices. Primary data were gathered from three countries representing western, eastern and southern Africa through observations, field surveys and in-depth and key informant interviews while literature was sourced for secondary data. The chapter identified street selling, haggling and credit-based selling as the major indigenous selling practices found among sellers in Africa. The cultural values that guide selling in the continent include respect, trustworthiness and kindness. The chapter displayed a framework to explain the subject matter and made some practical suggestions that are relevant for managers, educators and policymakers.

The Igbo people of south-eastern Nigeria are generally acknowledged as traders and astute entrepreneurs. Extant literature has investigated the various indigenous practices of Igbo entrepreneurs that ensure business success. Despite these efforts, knowledge of their financial practices has been limited. This chapter provides insights on the financial practices that are common amongst Igbo micro-entrepreneurs and the immense benefits of the practices. To unravel these practices, in-depth interviews were conducted with 15 micro-entrepreneurs involved in supermarket, spare parts and food items businesses in Lagos, Nigeria. Using a grounded theory approach, four significant financial practices such as rotating financial contribution, deferred financial arrangements, financial settlement practice and financial prudence common among the Igbo micro-entrepreneurs were identified. Based on the findings, relevant recommendations were made for financial educators and the management of modern financial institutions to adapt and incorporate some of these indigenous financial practices in teaching curricula and financial product designs.

This chapter examines the trends and issues in the purchase behaviour of African buyers as a contribution to the literature on consumer behaviour and management from an African perspective. The objectives of the chapter include investigating the nature of African buyers’ purchase patterns; examining the cultural influences on African buyers’ purchase behaviour; documenting African buyers’ path to purchase; and comparing African and non-African buyers’ purchase behaviours. The data used in the chapter were gathered from Nigeria, Kenya and South Africa through surveys, a focus group discussion and a key informant interview in order to generate findings that represent various regions of Africa. Findings reveal that African buyers purchase mostly consumables for household consumption. Price bargaining is also a common feature among African buyers. Findings further indicate that nature of households, local culture and the use of technology are some of the factors that influence African buyers’ purchase behaviour. The data also showed that information gathering and involvement of others are essential in the purchase path of African buyers. The chapter created a model to depict these various issues and made recommendations for managers, educators and policymakers in Africa on the subject matter.