GMS 522 Lecture 8: Lecture 8 - Global pricing strategies
9 Dec 2015
School
Department
Course
Professor
Document Summary
Only element of marketing mix, which is revenue generating. Pricing in foreign markets driven by a number of factors. These may be internal to the firm or may be exogenous. Pricing situation: nature of product, innovation/standard, adjustments due to customers and competition. Provides a floor under which prices cannot go in the long run. Demand for product acts as a ceiling. Offshoring of certain supplies/functions may reduce costs and increase competitiveness. Demand sets a celling on pricing decision. Price elasticity of demand: ( response to quantity demand in change of price) Consumer perception of the product: quality and value, depends on culture. Competition helps firm set prices between cost and demand. Firm may compete: on price may have no choice in some cases, on non-price options quality, reputation, or credit terms. Need to consider: government price fixing regulations, air canada"s problems, air france - million; ba - million; quantas - million; jal - .
