Pricing Strategies of Multinationals for Global Markets – Considerations and Initiatives: Pricing Strategies for Global Markets

Pricing Strategies of Multinationals for Global Markets – Considerations and Initiatives: Pricing Strategies for Global Markets

Pratap Chandra Mandal (Indian Institute of Management, Shillong, India)
Copyright: © 2020 |Pages: 13
DOI: 10.4018/IJBSA.2020010102

Abstract

Multinationals require analyzing a number of pricing considerations while competing in globally. Firms require setting different and appropriate prices of their products for each of the markets they operate in. The price of a product is an important criterion while formulating strategies for global markets as it determines to a large extent whether a product will get sold or not. Companies contend with a number of issues in pricing for global markets like geographical pricing, price escalation, transfer prices, dumping charges, pricing for emerging markets, and pricing for individuals at the bottom of the pyramid. There are several legal and ethical aspects in pricing for global markets. These include deceptive or illegal prices – deceptive reference pricing, loss leader pricing, and the bait and switch approach towards pricing; predatory pricing; price discrimination; and price fixing. Each of the issues is discussed in detail. The article focuses on how multinationals should handle and overcome them, establish their businesses in global markets, and generate substantial revenues and profits.
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2. Pricing Considerations For Products In Global Markets

Multinational firms which have presence in global markets should be aware of and should have proper strategies for geographical pricing, price escalation, transfer prices, dumping charges, pricing for emerging markets, and pricing for individuals at the bottom of the pyramid. Two issues in pricing which particularly important include pricing problems of gray markets and counterfeits (Antia, Bergen, Dutta, & Fisher, 2006).

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