Pricing for international markets
4 important questions on Pricing for international markets
What is skimming pricing vs penetration pricing ?
Penetration = low margin per unit but huge number of products sold
What are the different pricing strategies ? (5 methods)
2) Accounting approach : based on total cost
3) Value-based approach : depending on the value created for cutomers
4) Psychological pricing : link between price and quality, "zone d'acceptabilité du prix" en-dessous = pas assez cher, au-dessus = rejet car trop cher
5) Revenue or yield management : relevant for services, based on the load factor of train/plane/hotel, prices get lower when low demand and higher when high demand
What are the 3 psychological biases ?
- Prices crossed-out (prix barrés)
- Framing and dividing effets
- Higher grades + faster learning
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What are the main factors influencing international pricing ?
- International factors : shipping and transportation costs, inflation, number of intermediaries...
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
