Setting International Prices - Demand & market factors - Answer-price ceiling (elasticity
of D - Mylan Epipen,
Consumer perception - Qual/value, relo intermediaries - $ change/retail margins)
Setting International Prices - Market structure & competition - Answer-(set $ between
cost & demand, price or quality)
Environmental factors - Answer-(govt price fixing regs - grocery, price controls - govt set
max price)
Basic Pricing Strategies - Penetration - Answer-enters with low price, capture large
market share, econ of scale
Basic Pricing Strategies - Cost-plus - Answer-focus on own costs (fixed/variable),
marginal cost pricing (increment)
Basic Pricing Strategies - Demand-oriented - Answer-price/quantity demanded, sales
volume at different prices
- Maximize contribution for profit, not revenue (total contribution)
Basic Pricing Strategies - Market pricing - Answer-international on par w competitors
(control costs, ≠ lose $ / unit)
Basic Pricing Strategies - Market skimming - Answer-international high price, < $ over
time (≠ price-sensitive ppl)
Subsidiary coordination - Answer-differ in degree of autonomy they grant to overseas
subs
Multinational pricing strategies - Polycentric - Answer-firms set prices in each country
free from head office (arbitrage ops)
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