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           Corporate objectives

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           Customer behaviour

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theories / dynamics
strategies
escalation
      Reorganize the channel
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           Use new or more
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                   overseas

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international pricing decisions

  • 1. decisions Corporate objectives Costs Customer behaviour Market conditions Market structure Environmental constraints
  • 4. escalation Reorganize the channel of distribution Adapt the product Use new or more economical tariff or tax classifications Assemble or produce overseas

Notes de l'éditeur

  1. Pricing theories (dynamics)Price skimming (low volume, high markup)Price penetration (low price, high volume)Price elasticity (sensitivity to change)
  2. Polycentric Pricing Strategy:Firm sets price in each country market independent of head-office involvementGeocentric Pricing Strategy: Firm sets a minimum floor price below which the product cannot be sold by its subsidiaries in any countryEthnocentric Pricing Strategy: Single worldwide price is set