Artisans’ job pricing strategies: an exploratory study based on antecedent factors
Main Article Content
Abstract
Unlike the systematic and deterministic approach to job pricing in formal employment, in informal job settings, individual self-employed artisans generally set and/or negotiate their wage using different strategies considering various factors. This study uses the factors artisans consider as proxy to explore the job pricing decisions and strategies of construction artisans in Cape Coast in the Central Region of Ghana. The artisans were building craftsmen and master craftsmen – masons, carpenters, steel benders, plumbers and painters – who had signed up for the Ghana Skills Development Fund Project. A qualitative phenomenological approach to inquiry was used for the study. Interview was used as the main method of data collection. Data was analysed using Constant Comparative Analysis (CCA) consistent with Glaser and Strauss’ inductive thematic method. The study found that artisans’ job pricing decisions and strategies are influenced by a variety of latent objective job-related and market-driven factors as well as subjective discretionary considerations. As a function of these factors, artisans adopt cost-based, competition-based pricing, and customer-based pricing. A notable addition to these, is “contingency-based pricing”, an approach that is influenced by discretionary considerations the bulk of which are living-wage related. In view of the inconsistent and unpredictable nature of artisanal job offerings, the study supposes that artisans adopt this strategy to establish relationships that assure future jobs and support sustainable livelihood. The implication of the study is that, beyond objective job evaluation and market-driven factors, there are subjective discretionary considerations inherent to the job pricing decisions and strategies of informal sector workers.
Article Details
Section

This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
a) Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share and adapt the work with an acknowledgement of the work's authorship and initial publication in this journal.
b) Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
c) Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Open Access Citation Advantage Service). Where authors include such a work in an institutional repository or on their website (ie. a copy of a work which has been published in a UTS ePRESS journal, or a pre-print or post-print version of that work), we request that they include a statement that acknowledges the UTS ePRESS publication including the name of the journal, the volume number and a web-link to the journal item.
d) Authors should be aware that the Creative Commons Attribution (CC-BY) License permits readers to share (copy and redistribute the work in any medium or format) and adapt (remix, transform, and build upon the work) for any purpose, even commercially, provided they also give appropriate credit to the work, provide a link to the license, and indicate if changes were made. They may do these things in any reasonable manner, but not in any way that suggests you or your publisher endorses their use.
How to Cite
References
Amstrong, M., and Taylor, S., 2020. Amstrong’s Handbook of Human Resource Management Practice. Kogan Page Publishers.
Amusan, L.M., Oluwatobi, O., Dalshe, C., Ezenduka, J., Emetere, M.E., Owolabi, J.D., & Tunji-Olayeni, P.F. (2021). Towards improving artisan and craftsmen productivity. IOP Conference Series, 655(1), 012083. https://doi.org/10.1088/1755-1315/655/1/012083
Aro, R., & Wilska, T., 2014. Standard of living, consumption norms, and perceived necessities. International Journal of Sociology and Social Policy, 34(9/10), 710–728. https://doi.org/10.1108/ijssp-06-2013-0064
Armstrong, M., & Brown, D. (2017). Job evaluation versus market pricing: Competing or combining methods of pay determination? Compensation and Benefits Review, 49(3), 153–160. https://doi.org/10.1177/0886368718765827
Aulia, F. N., Sudaryono, H. N. B., Santoso, A. S., Larasati, S., & Pratama, M. I. (2021). Evaluation of XYZ SME compensation with determination of position grade using hay job evaluation methods. International Journal of Social Service and Research, 1(4), 349–362. https://doi.org/10.46799/ijssr.v1i4.53
Begmatov, A., & Vokhidova, T. (2021). The role of crafts in modern society. Uzbekistan on the Way to Third Renaissance: Harmony of Ethnocultural, Historical and Economic Aspects, 159–161. https://doi.org/10.54613/001092
Berrocal, F. B., García, M. A. A., & Ramírez-Vielma, R. (2018). Influence of the type of method on the results of job evaluation. UCJC business and society review, 59, 114–146. 10.3232/UBR. 2018.V15. N3.04.
Beqiri, T., & Dauti, M. (2015). Minimum wage in transition economies. Academic Journal of Interdisciplinary Studies. 4(2) https://doi.org/10.5901/ajis.2015.v4n2s1p134
Boucher, K. (2023). Pricing Strategy: 10 Strategies & Examples to Maximize Profits. https://www.podium.com/article/pricing-strategy /
Cantillo, T., Cantillo, V., García, L., & Cantillo-García, V. (2022). Uncovering the wage differential between formal and informal jobs: Analysis from the Colombian Caribbean region. Latin American Economic Review, 1–25. https://doi.org/10.47872/laer.v31.24
Chen, F., Lu, A., Wu, H., & Li, M. (2022). Compensation and pricing strategies in cloud service SLAs: Considering participants’ risk attitudes and consumer quality perception. Electronic Commerce Research and Applications, 56, 101215. https://doi.org/10.1016/j.elerap.2022.101215
Chhetri, S., & Basnyat, B. (2023). Wage differential of informal employment in Nepal. Academia ResearchJournal,2(1), 42–59. https://doi.org/10.3126/academia.v2i1.52335
Choi, J., & Kim, J. (2020). Market-based pay and employee outcomes: A systematic review and meta-analysis. Journal of Applied Psychology, 105(4), 431-453.
Ćorić, D. S. (2021). Factors influencing organisational buying decisions in the manufacturing industry: Are products and services procurement different? Zagreb International Review of Economics and Business, 24(1), 99–111. https://doi.org/10.2478/zireb-2021-0005
Cortés, J. G. (2023). Break-even point. Mercados Y Negocios, 48, 95–106. https://doi.org/10.32870/myn.vi48.7690
David, M. E., Bearden, W. O., & Haws, K. L. (2017). Priced just for me: The role of interpersonal attachment style on consumer responses to customized pricing. Journal of Consumer Behaviour, 16(6), e26–e37. https://doi.org/10.1002/cb.1651
De Lima Teodoro Da Penha, A., & Caten, C. S. T. (2023b). Understanding urgent projects: Unraveling meanings and management challenges. Concilium 23 (19), 611-631. http://doi.org/10.53660/clm-2119-23p53
Djokoto, S. D., Dadzie, J., & Ohemeng-Ababio, E. (2014). Barriers to sustainable construction in the Ghanaian construction industry: Consultants Perspectives. Journal of Sustainable Development, 7(1). https://doi.org/10.5539/jsd.v7n1p134
El-Farr, B. H. (2023). Job Evaluation: A step-by-step guide for designing and implementing the Point Factor Method. Pathways to Research.
Farm, A. (2016). Pricing and price competition in consumer markets. Journal of Economics, 120(2), 119–133. https://doi.org/10.1007/s00712-016-0503-7
Freitas, J. L. D. P., Muniz, E. N., Santos, A. D. F., Freitas, S. M. M. D., Freitas, L. M. D., Ribeiro, V., Trindade, L. M. D. F., De Arruda Santos, G. R., & Silva, C. M. (2022). Direct cost method applied to calculate milk production costs. Research, Society and Development, 11(2), e2911225328. https://doi.org/10.33448/rsd-v11i2.25328
Frey, D. F. (2017). Economic growth, full employment and decent work: the means and ends in SDG 8. The International Journal of Human Rights, 21(8), 1164–1184. https://doi.org/10.1080/13642987.2017.1348709
Gangwar, M., & Rao, V. R. (2020). Pricing strategies. In Routledge eBooks (pp. 309–324). https://doi.org/10.4324/9781351038669-24
Gerpott, T. J., & Berends, J. (2022). Competitive pricing on online markets: a literature review. Journal of Revenue and Pricing Management (Print), 21(6), 596–622. https://doi.org/10.1057/s41272-022-00390-x
Goetz, J. M. (2022). What do we know about rural and informal non-farming labour? Evidence from a mixed methods study of artisanal and small-scale mining in Northwest Tanzania. World Development, 158, 106012.
Graham, J. L., Cron, W. L., Gilly, M. C., & Slocum, J. W. (2007). A behavioral study of pricing decisions for professional services: a focus on gender. Social Science Research Network. https://doi.org/10.2139/ssrn.979607
Harahap, A. M. (2018). Rules on wage standard to improve workers’ living needs in the perspective of Maqasid Al-
Shari’ah. Ahkam: Jurnal Ilmu Syariah, 18(2). https://doi.org/10.15408/ajis.v18i2.9867
Harvey, W. S. (2020). The impact of market forces on executive compensation. Journal of Management, 46(4), 531-554.
Huang, J., Mani, A., & Wang, Z. (2022). The value of price discrimination in large social networks. ManagementScience, 68(6),4454-4477.https://doi.org/10.1287/mnsc.2021.4108
Hukkeri, S. V., Ramani, D., & Goswami, G. (2023). International human resource management: A review and critique using the MOORA Method. 1, 4(1), 1–6. https://doi.org/10.46632/rmc/4/1/1
Inchiem, N. a. B., Bujang, I., Matahir, H., & Nipo, D. T. (2020). Factors influencing the living wage in east Malaysia. Malaysian Journal of Business and Economics (MJBE),7(1),95. https://doi.org/10.51200/mjbe.vi.2834
International Labour Organization (ILO). (2015).; Definition and purpose. Retrieved April 5, 2024, from https://www.ilo.org/global/topics/wages/minimum-wages/definition/WCMS_439072/langen/index.htm#:~:text=Minimum%20wages%20have%20been%20defined,agreement%20or%20an%20individual%20contract%E2%80%9D.
Ismail, S., Arshad, A. S., Rahman, N. H. A., & Shafie, N. I. (2022). Job price compensable factors and parameters: The framework of the job evaluation system. Sustainable Business and Society in Emerging Economies, 4(3). https://doi.org/10.26710/sbsee.v4i3.2402
Jawabreh, O., Masa’deh, R. E., Bqaa’een, Y., & Alshurideh, M. (2023). Pricing Policies and Their Impact on Customer Satisfaction. In The Effect of Information Technology on Business and Marketing Intelligence Systems (pp. 2503-2518). Cham: Springer International Publishing.
Kutlu, A. C., Ekmekçioğlu, M., & Kahraman, C. (2013). A fuzzy multi-criteria approach to point-factor method for job evaluation. Journal of Intelligent & Fuzzy Systems, 25(3), 659-671. DOI: 10.3233/IFS-120673
Kuchkanov, V. (2024,). Conducting сompetitive pricing analysis for competitive pricing strategy. Competera - Pricing software for Online Retail. https://competera.net/resources/articles/competitive-pricing-analysis
Lavetti, K. (2023). Compensating wage differentials in labor markets: Empirical challenges and applications. Journal of Economic Perspectives, 37(3), 189-212.
Leibbrandt, A. (2016). Behavioral Constraints on pricing: Experimental evidence on price discrimination and customer antagonism. Social Science Research Network. https://doi.org/10.2139/ssrn.2897489
Leibbrandt, A. (2020). Behavioral constraints on price discrimination: Experimental evidence on pricing and customer antagonism. European Economic Review, 121, 103303. https://doi.org/10.1016/j.euroecorev.2019.103303
Leo, A., Doller, G. J. V., Siy, P. M., R, O. A., & De Guzman, F. E. (2023). Below the line: living with minimum wage. International Journal of Computer Science and Mobile Computing, 12(6), 53–63. https://doi.org/10.47760/ijcsmc.2023.v12i06.006
Liang, X., Wang, Y., & Li, J. (2021). Information and Bias Effects in Discretionary Pricing: Evidence from an OTC Drug Pricing Quasi-Experiment. Social Science Research Network. https://doi.org/10.2139/ssrn.3899585
Lukman, J. A. (2022). Social-Demographic factors and wage determination. Indonesian Journal of Business and Economics, 5(2). https://doi.org/10.25134/ijbe.v5i2.6708
Lutsenko, О. (2022). Employees’ performance-based remuneration (Korean and Chinese practices). Analìtično-porìvnâlʹne Pravoznavstvo, 1, 99–103. https://doi.org/10.24144/2788-6018.2022.01.18
Mercans (2023). Statutory Change Alert: Ghana revises national daily minimum wage for 2024. https://mercans.com/resources/statutory-alerts/ghana-revises-national-daily-minimum- wage-for-2024/
Munro, K., & O’Kane, C. (2022). The artisan economy and the new spirit of capitalism. Critical sociology, 48(1), 37-53. https://doi.org/10.1177/0896920521991195
Neubert, M. (2022). A systematic literature review of dynamic pricing strategies. International Business Research, 15(4), 1. https://doi.org/10.5539/ibr.v15n4p1
Nordman, C. J., Rakotomanana, F., & Roubaud, F. (2016). Informal versus formal: a panel data analysis of earnings gaps in madagascar. World Development, 86, 1-17. https://doi.org/10.1016/j.worlddev.2016.05.006
Ofori-Kuragu, J. K. (2020). Construction industry developments in Ghana. In Routledge eBooks (pp. 145–168). https://doi.org/10.1201/9780429322471-7
Olotewo, J. A. (2015). Manufacturers and retailers influence on market structure and pricing. International Journal of Online Marketing Research, 1(1), 1. https://doi.org/10.5455/ijomr.2015200938
Panwar, C., & Agnihotri, A. (2022). A study of wage and salary administration. International Journal of Research Publication and Reviews, 3(5), 643–644. https://doi.org/10.55248/gengpi.2022.3.5.8
Park, S. S., Baek, J., Yoo, Y., & Kim, D. (2022). A study on the users’ response to privacy issues in customized services. Journal of Multimedia Information System, 9(3), 201–208. https://doi.org/10.33851/jmis.2022.9.3.201
Phillips, R., Şimşek, A. S., & Van Ryzin, G. (2015). The effectiveness of field price discretion: Empirical evidence from auto lending. Management Science, 61(8), 1741-1759. https://doi.org/10.1287/mnsc.2014.2084
Salvador, D. (2023). Fusing Technology and Craftsmanship: Information system design for welding and fabrication services. International Journal of Advanced Research in Science, Communication and Technology, 3(1), 1031–1037. https://doi.org/10.48175/ijarsct-11911
Sammut‐Bonnici, T., & Channon, D. F. (2015). Pricing strategy. Wiley Encyclopedia of Management, 1–3. https://doi.org/10.1002/9781118785317.weom120162
Sari, S. P., & Hikmah, Y. (2022). Pricing analysis using target profit margin, ROI, and solvency on endownment life insurance products. MAap (Mathematics and Applications) Journal, 4(2), 163–172. https://doi.org/10.15548/map.v4i2.4207
Shafrin, J., Lakdawalla, D. N., Doshi, J. A., Garrison Jr, L. P., Malani, A., Neumann, P. J., ... & Willke, R. J. (2023). A strategy for value-based drug pricing under the inflation reduction act. Health Affairs Forefront. DOI: 10.1377/forefront.20230503.153705
Shah, A., Talsma, B., McDaniel, C., Gitman, L. J., Koffel, L., & Reece, M. (2022, August 1). Creating products and pricing strategies to meet customers’ needs. Pressbooks. https://louis.pressbooks.pub/introbusinessadmin/chapter/creating-products-and-pricing-
Shah, P., & Yang, J. Z. (2022). Consumer willingness to pay for sustainable products. Environmental Communication, 16(8), 1077–1093. https://doi.org/10.1080/17524032.2022.2152847
Singh, S., & Janor, H. (2013). An empirical study on pricing methods adopted by SMEs with different ownership structure. Global Business Review, 14(2), 315–327. https://doi.org/10.1177/0972150913477524
Society for Human Resource Management (SHRM) (2023,). Performing job evaluations. SHRM. https://www.shrm.org/topics-tools/tools/toolkits/performing-job-evaluations
Stephany, F., & Teutloff, O. (2024). What is the price of a skill? The value of
complementarity. Research Policy, 53(1), 104898. DOI:10.2139/ssrn.4234078Corpus ID: 252693244
Subrahmanyam, S., & Arif, S. A. F. (2022). Premium pricing strategy and customer retention –
An analysis. International Journal of Early Childhood Special Education, 14(3), 2060-2075
Sugiarto, H. S., Lim, E., & Sim, N. (2019). On Analysing Supply and Demand in Labor
Markets: Framework, Model and System. 2019 IEEE International Conference on Data Science and Advanced Analytics (DSAA), 511-520. https://doi.org/10.1109/dsaa.2019.00066
Thoti, K. K. (2022). An Empirical study on compensation management practices in Digital Marketing Company. International Journal of Scientific Research and Management, 10(04), 3333–3343. https://doi.org/10.18535/ijsrm/v10i4.em11
Thrane, S., Jarmatz, M., Laursen, M. F., & Kornmaaler, K. (2019). A practice-based approach to
collective decision-making in pricing. Qualitative Research in Accounting & Management, 16(1), 117–143. https://doi.org/10.1108/qram-03-2018-0019
Van Den Berg, S., Canoy, M., Timmers, L., & Hollak, C. E. M. (2022). PP152 The Assessment of the Price of a Medicine: The Possible Application of Cost-Based Pricing Methods. International Journal of Technology Assessment in Health Care (Print), 38(S1), S89– S90. https://doi.org/10.1017/s0266462322002641
Vlašić, D., Poldrugovac, K., & Janković, S. (2019). The Competitive pricing in marina business: Exploring relative price position and price fluctuation. HAL (Le Centre Pour La Communication Scientifique Directe). https://doi.org/10.5281/zenodo.2640935
Wearne, S., & White-Hunt, K. (2016). Managing the Urgent and Unexpected: Twelve Project Cases and a Commentary. Routledge. https://doi.org/10.1177/875697280603700510
Weinberger, T. E. (2007). The Pay-for-Strategic Value Method: a tool for compensation professionals in the outsourced environment. Compensation & Benefits Review, 39(1), 40–49. https://doi.org/10.1177/0886368706297428
Werner, A. (2020). Living wage and business ethics. In Springer eBooks (pp. 1–6). https://doi.org/10.1007/978-3-319-23514-1_1228-1
Wilson, C. (2014). Structured interviews. In Elsevier eBook (pp. 1-2). http://doi.org/10.1016/b978-0-12-410393-1.00001-6
Yao, C., Parker, J., Arrowsmith, J., & Carr, S. C. (2017). The living wage as an income range for decent work and life. Employee relations, 39(6), 875-887.
Yatna, C. N., & Yulianah, Y. (2024). Marketing Strategy To Increase Market Share In The Retail Industry. Jurnal Ekonomi, 13(03), 666-680.
Zhang, X., Song, M., & Liu, G. (2017). Service product pricing strategies based on time-sensitive customer choice behavior. Journal of Industrial and Management Optimization, 13(1), 297–312. https://doi.org/10.3934/jimo.2016018