CHAPTER ONE

1.1 INTRODUCTION 
Communication has become one of the greatest tools in marketing of goods. This important services has to be appropriating proceed in order to attract customer patronage and increase protiability. 
According to Kotles (1996 P:46) price is the amount of money customers pay for the product or service and the time a place of exchange. 
Mumer (1994:10) in the quality review of marketing stated that price is the exchange value of a good services and the value of an item is what it can be exchange in the market place, every product and service has its price. It is through price and payment that firms recover their cost of production and active their margin of profit. 
Price is the monetary expression of values. Value is created on utility, utility is an expression of usefulness, while usefulness is based on the potential for need and want, satisfaction value and utility are culturally based while needs and want cultural psychological, sociological and physiological based, therefore price as an ultimate expression of needs and want satisfying potential of an item of product or services which has cultural psychological economic implication on market. 
Edoga and Ani (2000: 319) noted that price is often used to indicate value when it is paired with the perceived quality of product or service specifically, value can be defined as the ration o perceived quality to price (value perceived quality/price). 
This relationship shows that for a given price as perceived quality increase, value increases. Also, for a given price, value, decreases when perceived quality decrease. For some product, price itself influences that perception of quality ultimately value, to consumers, this include transport service. 
Pricing is an important and complete elastic of the marketing mix and generate the highest level of external interference. 
It is a major determinant with volume of goods and service available for the consumer in any economy. Therefor, forms especially those on profit business has to chose with the control. The environmental variable, both external and internal pricing policies and techniques which are available to achieve its organizational objective.
The importance of price in communications industry cannot be one emphasized. If communication organization wants to maximize its net profit the right price must be selected for its services price in a services may either be to higher too how to be good. When the price changed are two high the size of the market for that particular product may be unnecessary restricted and if the right price where used. The size of net profit is directed to the effectiveness of price because price usually cause change in market demand for a given product and in turn its revenue and net profit. 
Monree (1992: 210) noted that the consumer perception of product quality vary directly with the price, the higher the price, the better the quantity is perceived to be. 
In the world of Ichie (1993: 25) without price there can be no marketing, product may be marched with market but only when buyers and sellers agree on price, ownership transfer actually occur. Either a buyers or a seller may propose a price but it is not effective until price is accepted by the owner. 
In the view of the compose nature of price and important to customers patronage decision the researcher in the study critically examine the effective pricing strategies for introducing a new product in the market with particular interest on Global Communication GSM operation in Enugu.

1.2 STATEMENT OF PROBLEM 
Price is an important marketing mix that makes or mar a company especially in a delegated economy like in an attempt to make quick money or an excess profit. Communication industry especially GSM operators usually increase a price of their services and product in discruminately. 
This is no double affect the patronage of customers. It has also been discovered that the price of GSM service are not commensurate with the quality of services offered. This money charged for voice mail cause for service questioning. 
Although Global com GSM is yet to make an impact in Enugu metropolis but one does not expect must difference in the quality and price of their product as in areas where they have stated operation. It is because of important enterprise in the marketing of goods and services that the research examine.

1.3 OBJECTIVES OF THE STUDY
1. To determine whether the pricing system of communication companies attract customers. 
2. To find out the problems associated with the pricing system of communication companies
3. To determine the effect of pricing system on the profitability of communication companies. 
4. To find out the problems associated with the pricing system of communication companies 
5. To see if repeat patronage of the customers of communication companies as a rest of the pricing system. 
6. To find out how communication companies fix their charges. 
7. To make appropriate recommendation on how to improve on the changing system of the communication companies.

1.4 FORMATION OF HYPOTHESIS
HYPOTHESIS 1
Ho: Pricing system adopted by communication companies not attract customers. 
Hi: Pricing system adopted by communication companies attract customers.

HYPOTHESIS 2 
Ho: Pricing system of communication companies does not lead to increase profitability of the company
Hi: Pricing system of communication companies lead to increased profitability of the companies.

HYPOTHESIS 3
Ho: Pricing system adopted by communication companies does not lead to customers repeat patronage. 
Hi: Pricing system adopted by communication companies lead to customers repeat patronage.

HYPOTHESIS 4 
Ho: Pricing system as adopted by communication companies is not commensurate with quality of service rendered. 
Hi: Pricing system as adopted by communication companies is commensurate with quality of service rendered.

1.5 SIGNIFICANCE OF THE STUDY 
The study is not only an academic exercise, it will have a substances benefit to the researcher. It will wider the researcher knowledge in research writer or pricing strategic adopted by communication industries.
It will be of immerse benefit to researcher’s or reader’s who will find the study as a source of literature review.
Global com and other related firms will find the write up very useful it will help them to know how to fix prices their service/product. 
The government also will equally benefit from the study since they equally involve in marketing of communication service.

1.6 SCOPE OF THE STUDY 
This research was under taken to examine the effective pricing strategic for introducing a new product in the marketing, a case study of Global com GSM in Enugu. 
However in the view of limited resources, time and other constraints emphasis was placed on Global com operations within Enugu metropolis.

1.7 DEFINITION OF TERMS 
(1) Price – Is the monetary expression of valve 
(2) Marketing – The process of identify, anticipating and want through exchange made.