Podcast
Questions and Answers
Which pricing strategy involves setting a low initial price to attract customers in a new market?
Which pricing strategy involves setting a low initial price to attract customers in a new market?
- Skimming pricing (correct)
- Transfer pricing
- Export price escalation
- Global pricing policy
What is the term for selling an imported product at a lower price than the normal charge in the domestic market?
What is the term for selling an imported product at a lower price than the normal charge in the domestic market?
- Price differentiation
- Gray marketing
- Export price escalation
- Dumping (correct)
Which pricing strategy focuses on setting the same prices for products or services in all markets?
Which pricing strategy focuses on setting the same prices for products or services in all markets?
- Cost-based pricing
- Discounts and allowances
- Price standardization (correct)
- Ethnocentric pricing
What is the term for the pricing of goods, services, and intangible property between units or divisions of a company?
What is the term for the pricing of goods, services, and intangible property between units or divisions of a company?
Which type of pricing involves adding a markup to the total cost of a product to determine its selling price?
Which type of pricing involves adding a markup to the total cost of a product to determine its selling price?
What is the term for selling products at a higher price in the export market than in the domestic market?
What is the term for selling products at a higher price in the export market than in the domestic market?
What is the law of one price?
What is the law of one price?
What is the objective of market skimming pricing strategy?
What is the objective of market skimming pricing strategy?
What is the primary objective of penetration pricing?
What is the primary objective of penetration pricing?
What does PLC pricing strategy follow?
What does PLC pricing strategy follow?
What is the purpose of experience curve pricing?
What is the purpose of experience curve pricing?
What is freemium pricing?
What is freemium pricing?
What is the purpose of product service bundle pricing?
What is the purpose of product service bundle pricing?
What does pricing objectives involve?
What does pricing objectives involve?
What are factors that affect pricing for goods that cross borders?
What are factors that affect pricing for goods that cross borders?
What is the purpose of price floor and price ceiling?
What is the purpose of price floor and price ceiling?
What is optimum pricing primarily determined by?
What is optimum pricing primarily determined by?
What is the main objective of managers in determining pricing objectives?
What is the main objective of managers in determining pricing objectives?
Study Notes
- Pricing strategies in international business:
- Penetration, skimming, or other pricing objectives for a firm.
- Discounts and allowances: type and implementation.
- Exporting: obtaining an export license, packing goods, transporting, completing customer export papers, preparing invoices, and arranging for ocean freight and marine insurance.
- Cost considerations in pricing:
- Rigid cost plus pricing vs. flexible cost plus pricing.
- Export price escalation.
- Gray marketing (parallel importing) and its implications on pricing.
- International pricing strategies:
- Coordinating prices between countries (pricing across countries).
- Price standardization vs. price differentiation.
- Global pricing policy alternatives: ethnocentric, adaptation, or geocentric.
- Cost-based pricing:
- Transfer pricing: pricing of goods, services, and intangible property between units or divisions of a company.
- Per-unit product costs (full absorption cost method).
- Cost-based transfer pricing vs. market-based transfer pricing.
- Other pricing considerations:
- Dumping: selling an imported product at a lower price than the normal charge in the domestic market.
- Inflationary environment and its impact on pricing.
- Government controls, subsidies, and regulations affecting pricing decisions.
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Description
Test your knowledge of pricing decisions in global marketing with this quiz. Explore key concepts such as the law of one price, adaptation to new markets, and factors influencing pricing in national and global markets.
