The Pricing Effectiveness Index (PEI) for Performance Measurement of Fresh Vegetable Sales by Retailers to Secure Sustainable Profitability

Utilizing price margin as a metric for price effectiveness is deemed inappropriate, as margin serves merely as an intermediate indicator of performance. This research introduces the concept of the Pricing Effectiveness Index (PEI) to assess price effectiveness, specifically employing the profit change index to evaluate price fluctuations expressed in proportional or percentage terms. The study was conducted across all traditional markets in Mataram City utilizing census methodologies. Data collection encompassed both observational and survey techniques. Observations and surveys were executed within the commercial establishments of retailers dealing in vegetables, particularly water spinach (Ipomoea aquatica). The findings indicate that the PEI is a viable tool for measuring the price effectiveness of water spinach in traditional markets and holds potential for assessing the price effectiveness of other products. Furthermore, it can serve as a strategic framework for adjusting prices to enhance profitability for business operators.

market, retailer, performance, vegetable, water spinach

1. Puri, N.P., Saiya, H.G., Buditama, G., and Yola, L. (2022) Study of Dry Climate During Extreme El-Nino Occurrence for Plantation Commodities in Nangapanda, East Nusa Tenggara. Sustainable Architecture dan Building Environment: 171-183. [Google Scholar] [Crossref]

2. Ryadi, G. Y. I, Sukmono, A., and Sasmito,B. (2019) Pengaruh Fenomena El nino dan La nina pada pensebaran curah hujan dan tingkat kekeringan lahan di Pulau. Jurnal Geodesi Undip, 8(4): 41-49 [Google Scholar] [Crossref]

3. Ibrahim, F. (2023). Marketing Efficiency Analysis of Lingsar Water Spinach Vegetables, West Lombok Regency. Faculty of Agriculture, Mataram University. Mataram: 67 [Google Scholar] [Crossref]

4. Pratiwi, TDG. (2023) Marketing Strategy for Vigetables of lowland in Lingsar Dstrict. Faculty of Agricultural, Mataram University. Mataram: 94 [Google Scholar] [Crossref]

5. Diana, R. (2023) Trend Analysis of Fruits Sales Volume at pasarmadalika.com. Faculty of Agriculture, Mataram University. Mataram: 70 [Google Scholar] [Crossref]

6. Mauliya, R.R. (2023) Analysis of Vegetables Sales Volume at CV. Abbasy Karya Mandiri Through pasarmandalika.com. Faculty of Agricultural, Mataram University. Mataram: 70 [Google Scholar] [Crossref]

7. Tajidan, T., Halil, H., Fernandez, E., Mulyawatim S., Efendy, E., and Nabilah. (2023) The customer satisfaction of store pasarmandalika.com regarding the attributes of vegetable and fruit products and strategies for increasing sustainable sales turnover. International Journal of Management and Commerce Innovations. ISSN 2348-7585 (Online). 11(1): 443-450, [Google Scholar] [Crossref]

8. Odean, T.M. (2002) Volume, Volatility, Price, and Profit When All Traders Are Above Average. The Journal of Finance. The Journal of The American Finance: 1-10 [Google Scholar] [Crossref]

9. Tjiptono, F. (2019) Strategi Pemasaran: Prinsip & Penerapannya. Andi Offset, Yogyakarta: 1517 Ibid: 157. [Google Scholar] [Crossref]

10. Barach, D. (2023) Measuring Pricing Effectiveness: Key Matrices. Zebras: 1-2. [Google Scholar] [Crossref]

11. Conlon, CT. (2012) A Dynamic Model of Prices and Margins in the LCD TV Industry. Columbia University: 1-38. [Google Scholar] [Crossref]

12. Chakhovich, T. (2013), "Perceptions of share price: long‐term or short‐term oriented?", Accounting, Auditing & Accountability Journal, 26(1): 133-155. [Google Scholar] [Crossref]

13. Valpiani, N., Wilde, P., Rogers, B., and Stewart, H. (2015) Patterns of fruit and vegetable availability and price competitiveness across four seasons are different in local food outlets and supermarkets. Published online by Cambridge University Press. Public Health Nutrition: 18(15): 2846–2854 [Google Scholar] [Crossref]

14. Sahban, H. (2018) Empowerment of Traders and Traditional Market Potential Development in Indonesia. Dspace Repository. International Journal of Innovative Science and Research Technology: 1-10 [Google Scholar] [Crossref]

15. Rumokoy, R.P., Mangantar, M., and Gunawan, E. (2022) A perspective from marketing mix and sales performance; the existence of modern retailers and traditional retailers in Sonder. Journal of Economics, Management, Business, and Accounting Research, 10(3):193-203 [Google Scholar] [Crossref]

16. Tey, YS, Mad Nasir, S., Zainalabidin, M., Jinap, S., and Abdul Gariff, R. (2009) Demand for quality vegetables in Malaysia. International Food Research Journal 16: 313-327 [Google Scholar] [Crossref]

17. Han, T and Wahl, T.I. (2015) China's Rural Household Demand for Fruit and Vegetables. Journal of Agricultural and Applied Economics. Published online by Cambridge University Pres. 30(1): 1-10. [Google Scholar] [Crossref]

18. Prest, B.C. (2020). Peaking Interest: How Awareness Drives the Effectiveness of Time-of-Use Electricity Pricing. Journal of the Association of Environmental and Resource Economists. 7(1): 1-11 [Google Scholar] [Crossref]

19. Dyhdalewiczm A. (2017) The implementation of variable costing in the management of profitability of sales in trade companies. Scendo. University of Information Technology and Management in Rzeszow: 116-127 [Google Scholar] [Crossref]

20. lnasser,N., Shaban,OS, Al-Zub,Ziad., (2014) The Effect of Using Break-Even-Points in Planning, Controlling, and Decision Making in the Industrial, Jordanian Companies. International Journal of Academic Research in Business and Social Sciences May 2014, 4(5): 626-636 [Google Scholar] [Crossref]

21. Kaviani, M. (2014) A Modern Theory to Analysis of Break-Even Point and Leverages with Approach of Financial Analyst. Research Journal of Finance and Accounting www.iiste.org ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online). 5(11): 68-78 [Google Scholar] [Crossref]

22. Ayanwale,A.B., Amusan,C.A., Adeyemo, V.A., and Oyedele, D.J., (2016) Analysis of Household Demand for Underutilized Indigenous Vegetables, International Journal of Vegetable Science, 22(6): 570-577 [Google Scholar] [Crossref]

23. Kim, JY., Kaufmann, K. and Stegemann, M. (2014) The impact of buyer–seller relationships and reference prices on the effectiveness of the pay what you want pricing mechanism. Mark Lett 25: 409-423 [Google Scholar] [Crossref]

24. Priyadarshi, R., Panigrahi, A, Routroy, S., Garg, G. K. (2019) Demand forecasting at retail stage for selected vegetables: a performance analysis. Journal of Modeling in Management. ISSN: 1746-5664: 1-11. [Google Scholar] [Crossref]

25. Mergenthaler, M. Weinberger, K., Qaim,N. (2009). The food system transformation in developing countries: A disaggregated demand analysis for fruits and vegetables in Vietnam. Food Policy. 34(5): 426-436 [Google Scholar] [Crossref]

26. Rizaty, A. A. (2023) Water spinach production in Indonesia will reach 331,478 tons in 2022. Agribusiness & forestry. Central Bureau of Statistics: 1-2 [Google Scholar] [Crossref]

27. Arumugam, T., Sona, C.L., and Maheswari, U. M., (2021) Fruits and vegetables as Superfoods: Scope and demand. The Pharma Innovation Journal 2021; 10(3): 119-129. [Google Scholar] [Crossref]

28. Lippe,R.S. (2010) Urban Household Demand for Fresh Fruits and Vegetables in Thailand. Applied Economics Journal. Center for Applied Economics Research ISSN 0858-9291 17(1): 1-26 [Google Scholar] [Crossref]

29. Feurer, S., Schuhmache, MC., Kuester, S. (2018) How Pricing Teams Develop Effective Pricing Strategies for New Products. Journal of Product Innovation Management. Online Library: 1-10 [Google Scholar] [Crossref]

• A Study on Utilisation on Vidiyal Payanam with Special Reference to Udumalpet
• Influence of Sales Promotional Strategies on Water Purifier Purchase: A Study
• Voluptatem exercitat
• Beatae voluptatum eanfjnjfnjnj
• Analysis of Marketing Strategies in Newbridge College During Covid-19 Pandemic