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Unit 8: Pricing Decisions for International Markets
          Hitesh Jhanji, Lovely Professional University



               Unit 8: Pricing Decisions for International Markets                              Notes


            CONTENTS
            Objectives
            Introduction

            8.1  Pricing Decisions
            8.2  Factors affecting International Pricing Strategies
                 8.2.1  Factors affecting Pricing Decisions

            8.3  Pricing Approaches
            8.4  Pricing Issues in International Marketing
            8.5  Summary
            8.6  Keywords
            8.7  Review Questions

            8.8  Further Readings

          Objectives

          After studying this unit, you will be able to:

               Describe Pricing
               Explain the parameters on which pricing decisions are based
               Discuss on the information needed for pricing decisions
               Explain the factors affecting export pricing
               Describe the various pricing strategies used by firms

               Analyse the pricing issues in international markets

          Introduction

          Pricing is a very critical decision in international marketing management because it is a major
          factor influencing a firm’s total revenue from exports and its profitability. There is no thumb
          rule or any scientific or mathematical/statistical formula that can be applied in pricing a product
          correctly. There is no doubt that as is the case in the domestic market the interaction of the
          market force like demand and supply affect the price at which the product can be sold in the
          international market. Besides, several other factors: economic, social, political, marketing
          conditions and product attributes influence the decision making in the international marketing.
          In any given marketing three basic factors determine the limits of pricing decisions of a firm.
          These are product cost, the purchasing power of the consumers and demand and supply force.
          8.1 Pricing Decisions


          The pricing decision is a critical one for most marketers, yet the amount of attention given to
          this key area is often much less than is given to other marketing decisions. One reason for the
          lack of attention is that many believe price setting is a mechanical process requiring the marketer



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