Pricing decisions are complex in international marketing. Factors that influence the channel structures the choice of channel to use is a central decision for the manufacturer where a number of factors and objectives have to be considered as basis for such decision. Factors that affect pricing strategies for international, multinational. Factors influencing pricing decisions request pdf researchgate. Factors influencing international price slideshare. Therefore, a marketer should adopt a wellplanned approach for pricing decisions. This paper has divided the factors, which affect pricing and piecing. An enormous number of factors affect pricing decisions. Meaning of internationalpricingglobal pricing is one of the most critical and complex issues that globalfirms face so it can give a break or a boost to companys revenue. However, we will consider internal and external factors affecting pricing decisions. The marketer should know the factors that influence the pricing decisions before setting the price of a product. For international markets, pricing is one of the most important elements of marketing product mix, generates cash and. This means that the management of the business should take into account the change in the price and offering of the competitors and take steps accordingly.
Figure 2 shows a list of internal and external factors. Due to these factors, price is set high or low, fixed or variable, and equal or discriminative. Factors influencing pricing strategy in international. An examination of factors that affect pricing decisions for export markets. Let us analyze some of the main factors influencing pricing decisions. Factors affecting pricing decision in international market mu bit. Now customize the name of a clipboard to store your clips. Factors which determine pricing decisions in international marketing are the cost of the product or service, competition in foreign market and.
Whatever might be the strategy followed, pricing has to reflect the proper value in the eyes of the consumer. Basically, the prices of products and services are determined by the interplay of five factors, viz. Price regulations can come from any level of government and vary extensively in their requirements. This paper examines factors that affect pricing decision for export markets, and sheds light on international pricing strategies in a global competitive market. Price is the only element of marketing mix that helps in generating income. A firm may have to follow different pricing strategies in different markets. Figure2 shows the factors that affect the pricing decisions. Pdf an examination of factors that affect pricing decisions for. Is the price competitive given local market conditions.
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