1. Pricing Decisions
Chapter 11

2. “Law of ___________ Price”
All customers in the market could get the _______ product available for the _________ price.
For which of the following products does a true global market exist such that the “Law of __________ Price” holds true:
Beer c. Commercial aircraft
Compact discs d. Prescription drugs

3. Pricing issues unique to global marketing:
Pricing strategy for a particular product ______________ from country to country.
A product may be ________________ as a low-priced, mass-market product in some countries and a premium-priced, _________________ product in others.
Pricing objectives may also vary depending on a _________________ stage & country-specific competitive situation.

4. ______________-Based Objectives
Market _____________________: used to ___________________ financial profit and seek quick _____________ for a new product.
Target consumers qualify as ________________________ and __________________________.

5. Profit-Based Objectives
Market ___________________:
Relatively __________________ demand curves.
Most appropriate for a market of ____________ designer brands.

6. TAGHeuer

7. Sales-Based Objectives
_______________________ Pricing:
Using price as a ________________ weapon to ________ market position.
Prices are set __________ to quickly build _______________________.
i.e., used by ____________ when launching the _________________ personal stereo.

8. Skimming followed by Penetration: PDA: initial retail price = $699, one year later lowered the price to $299 to reach a broader market.
____________
_________
$699
$299
Price

9. Companion Products: “___________ & _________” Pricing
Price dropping on _______ item, but still significant margins on _____________.

10. _____________-Based Pricing
Defines cost as the sum of all past or current ________ & ___________ manufacturing and overhead costs.
Adv.: simple to ________________
Disadv.: ignoring ___________ and ___________________ conditions.

11. Price ____________________
The phrase global marketers use to describe price ______________ that result from the costs associated with _________________ products across borders.

12. Factors that Contribute to Price Escalation?
Duties and _________________
______________________ Costs
__________________________
Fluctuating __________________
Varying ______________ Values
______________________ Cost 
_____________ and Insurance Charges

13. Export Price Escalation
Price Esc. Results in products costing ___________ in _________ markets than in the producer’s ____________ market.
Price Esc. Can be the result of ________ distribution channels required for exporting.
The producer may ______________ the product’s price in export markets to remain competitive.

14. A manufacturer concerned about price escalation in export markets can:
_____________ the product to a host-country manufacturer
Develop a ________________ with a host-country manufacturer.
Switch to _______________ sourcing
Attempt to __________________ distribution channels.

15. Ethnocentric (______________) Pricing:
set the export price for a particular product at an amount __________ to the home country price.
Attitude: “We know what the customer wants, and he or she will have to pay for it.”

16. Polycentric (__________________)Pricing:
this policy permits _________________ managers to establish whatever price they feel is most desirable in their circumstances.
One study of European industrial exporters found that companies utilizing independent _______________________ were the most likely to utilize ___________________________ pricing.

17. __________________ Pricing
It is more _______________ and _________________________ that the other two pricing strategies.
It recognizes both _________ market differences and the importance of ____________________________ input into pricing decisions.

18. _______________ Marketing
The _________________ distribution of trademarked goods to exploit _______ differentials in world markets.
Manufacturer sell to domestic distributor for $_____ & $_____ to a distributor in Asia.
Unauthorized, the Asian distributor resells the club to a retailer in the U.S. for $____________

19. To combat the __________ market problem, _________ ______________ takes out newspaper ads urging consumers to purchase Tag Heuer products from _____________ dealers only.

20. Dumping If a company sells products in _______ markets at prices
that are below ___________
value and that can harm
producers in the __________
market.

21. __________ Marketing: In the early 90s, the U. S
__________ Marketing: In the early 90s, the U.S. ___________ ____________ ruled that several ________________ manuf. were selling flat panel screens in the U.S. at less than fair value & thereby injuring the sole U.S. producer of similar screens.

22. _____________________ Pricing:
Transactions between buyers and sellers that have the same ____________________.
It refers to pricing decisions for _____________________________ sales.
i.e., _____________ subsidiaries sell to, and buy from, each other.
Approached to Transfer Pricing: ________-Based, ________-Based, & ____________

23. A situation that underscores the importance of transfer pricing in global marketing.
Recent trade data indicate that about _____% of U.S. merchandise exports represent shipments by American companies to their foreign affiliates and subsidiaries.

24. Countertrade
A _________ term that refers to several different types of business transactions. Taking _______________________ payment in some form other than money.

25. Countertrade is the most general term for the global phenomenon involving ___________ business interactions between parties in various countries.
Types of Countertrade: ________; _______________; __________; _________________ Trading; & _________________ Trading

26. ______________: The direct exchange of goods or services between parties in lieu of ________________ payment.
i.e., 1970s & 80s: ____________ & the _______________________:
Soft-drink syrup concentrate for _____________________

27. 2. ____________: is required by governments seeking to ______ the budgetary impact of expenditures for ___________ or telecommunications.
“If you want us to spend government money on your _______, you must ______ products from our country.”

28. Offset: to win a contract to supply the _______________ with AWACS aircraft, ________ agreed to purchase products from the _______ whose value was equivalent to _______ % of the contract.

29. 3. Compensation Trading (___________):
It involves _________ separate and parallel contracts.
i.e., _____ contract: I agree to _________ a lumber processing plant in your country.
_______ Contract: I agree to take _______ payment for the plant in the form of lumber products produced in the plant.

30. _______________ Trading (________________ trade or swap)
In this arrangement, a professional ______ trader or ________ steps into a simple barter or other countertrade arrangement when one of the parties is ____________ to accept all the goods received in a transaction.