Identification and Evaluation of Factors Influencing the Select of Pricing Strategy in Food Industry

The purpose of this study is identification of the effective factors affecting on pricing strategie's selection in food producing companies using structural equation modeling (SEM). Data were gathered by interview and questionnaire completion from 127 food industry's experts and specialists. Exploratory Factor Analysis (EFA) is used for factor analyzing of latent variables. According to the result of EFA, four factors of customer, competitors, market characteristics and government policies explain more than 67 percent of the cumulative variance of the select of pricing strategy. As a result, exploratory factor analysis could prove theoretical framework in this study. The result of path analysis show that customer and bazaar characteristics are the main factors affecting on select of pricing strategy in food industry.