Decision 4

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Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2017

Figure 15.1 International pricing framework

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Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2017

Table 15.1 Examples of price escalation

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Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2017

Figure 15.2 Strategies for pricing a new product

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Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2017

Note: EU prices are an average of prices in France, Germany, Italy, Spain and UK

Exhibit 15.1 German car manufacturers are using ‘skimming’ price strategy
in China

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Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2017

Table 15.2 Sales volume increase or decrease (%) required to maintain total profit contribution

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Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2017

Figure 15.5 Structural factors of standardized versus differentiated pricing in European consumer goods markets
Source: reprinted from European Management Journal, vol. 12, no. 2, Diller, H. and Bukhari, I. (1994) ‘Pricing conditions in the European Common Market’, p. 168, Copyright 1994, with permission from Elsevier.

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Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2017

Figure 15.6 A taxonomy of international pricing practices

Source: adapted from Solberg et al. (2006, p. 31). In the original article Solberg has used the concept ‘globality’ rather than ‘globalism’.

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Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2017

Table 15.3 Global pricing contracts: advantages and disadvantages

Source: based on Narayandas et al. (2000, pp. 61–70).

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Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2017

Figure 15.9 The process for handling letters of credit

Source: Phillips et al. (1994, p. 454). With permission from Cengage Learning.

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Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2017