The determinants of pricing strategies for industrial products in international markets

Abstract

The global marketplace is becoming increasingly complex in which to conduct business. Firms marketing consumer goods have a somewhat easier time than those selling industrial products, since more has been written about them and the international consumer goods have been analyzed for a longer period of time. In addition, the international marketing literature, has looked more at the elements of product, promotion and place than price. This literature gap has created a void in the understanding of marketers as to how to effectively price industrial products in international markets. The paper identifies the important industrial pricing strategies in international marketing and examines the underlying determinants that affect their outcome. In addition, the specific causal relationships between the determinants and pricing strategies are examined through a logistic regression analysis. © 2002 by The Haworth Press, Inc. All rights reserved.