International Pricing Strategies Research Articles

International Pricing Strategies for Born-Global Firms

This paper aims to understand how born global firms develop their international pricing strategies, practices, and models. It aims to expand the study of international entrepreneurship and born global firms by including a broader and deeper range of pricing aspects than is normally found in the international entrepreneurship and pricing literature. The paper opted for a multiple case-study research design using different sources of evidence, including four in-depth interviews with CEOs of born global firms. The case-study firms were selected using a purposive selection method. The theoretical framework of Ingenbleek, Frambach & Verhallen is used. The results suggest that successful leaders act as ‘integrating forces’ on two levels: by applying a structured and disciplined price-setting process with regular reviews and by mediating between corporate financial goals and the local market reality. The results support the claim that policy makers should offer insights, training and financial support to give promising born global firms the possibility to select the most efficient international pricing models and strategies. The results are relevant for entrepreneurs to understand the importance of efficient price-modelling processes and the influence of the different price strategies and price models on financial results and sales revenues.

Bevacizumab (bev) for metastatic colorectal cancer (mCRC): A global cost-effectiveness analysis.

6518Background: In the United States, the addition of bev to 1st-line chemotherapy in mCRC provides an additional 0.10 quality-adjusted life years (QALYs) at an incremental cost-effectiveness ratio (ICER) of $571,240/QALY (Goldstein et al. Journal of Clinical Oncology, 2015). However, this estimate of value is not transferrable between countries due to variable international pricing strategies. Our objective was to establish the cost-effectiveness of bev in mCRC in 5 different countries: the US, the UK, Canada (CAN), Australia (AUS), and Israel (ISR). Methods: We performed the analysis on the basis of a previously published Markov model (Goldstein et al. JCO, 2015). Input data for efficacy, adverse events and quality of life were considered to be standard for all countries. We used country specific prices for all healthcare services, medications, and administration costs. For the UK, all costs were obtained from UK Department of Health, National Health Service and British National Formulary. For CAN, all ...

Identifying factors that influence the price adaptation strategies in Indian Leather Industry: a structural model examination

In a context of globalization, the role of international pricing strategies has been increasingly recognized in the literature, but there is little research in the leather industry examining the factors that are important and play a role in determining the degree of adaptation of international pricing strategy. The main aim of this research paper is to evaluate the extent to which the Indian Leather manufacturing firm adapts the international marketing strategies (i.e. price, product, promotion, and distribution) depending on the characteristics of the foreign environment. The results further signposted that the degree to which these firms adapt their pricing strategy depends on the degree of standardization or adaptation of the remaining marketing-mix elements (product, promotion, and distribution).

Equity in Pharmaceutical Pricing and Reimbursement: Crossing the Income Divide in Asia Pacific

ObjectivesThe article takes a three-dimensional approach (triangulation) in defining international pricing policy for pharmaceuticals using cost-effectiveness analysis (CEA), willingness-to-pay (WTP) analysis, and ability-to-pay (ATP) analysis. It attempts to find a balance between the various economic methods of which some focus on effectiveness while others are geared toward incorporating equity in the equation. MethodsA critical review of the first two established economic methods and their ability to evaluate not only “efficacy” but also “fairness” in pricing decisions identifies a gap in the latter. Therefore, a third analytic method is presented that measures the ATP based on a country’s score in the human development index of the United Nations Development Program for 120 countries. This approach allows practicing differential pricing among and within countries. To refine this equity-driven pricing concept, two additional parameters can be added to the model: the Oxford “Multidimensional Poverty Index” and the “Out-of-Pocket” or “Self Pay” health expenditure as reported by the World Bank. ResultsThere is no hierarchy between the above three pricing methods. Because one method provides further insight into the other, however, it is recommended to start with CEA followed by WTP analysis. These types of analysis are closely linked in that the first provides the CE ratio for the compound investigated and the other sets the anticipated ceiling threshold of the payer’s WTP (in a particular country). The ATP method provides a supplementary “equity” check and facilitates the process of equity-based differential pricing. ConclusionsA third method should be used in conjunction with the standard CEA and WTP analysis that measures the ATP with the human development index as yardstick to provide sustainable and equitable access to medicines. We recommend that ATP analysis becomes an additional practice in policy decision making and in defining international pricing strategies for pharmaceuticals.

Antecedents of international pricing adaptation and export performance

Using data collected from over 300 firms, price adaptation and export performance were measured at the export venture level and analyzed by way of structural equation modeling. The manager's international experience and the characteristics of the foreign market were found to influence price adaptation and export performance, which itself was influenced by price adaptation. We concluded that international pricing strategies should reflect the environmental characteristics of the foreign market. A price standardization strategy had a positive impact on the export performance of the firm and, a surprising result, firms appeared to perform better in countries that were very different from their home country.

Factors Influencing the Degree of International Pricing Strategy Standardization of Multinational Corporations

In response to certain important gaps identified in the global marketing literature, the focus of this inquiry is an investigation of the pricing strategies followed by manufacturing subsidiaries of multinational corporations. Specifically, the authors attempt to identify the factors that play an important role in determining the degree of international pricing strategy standardization. The findings suggest that the extent to which multinationals standardize their international pricing strategies depends on the level of similarity between home and host countries in terms of customer characteristics, legal environment, economic conditions, and stage of the product life cycle. The authors highlight implications of the findings for business practitioners and discuss future research directions along with the limitations of the study.

Exchange Rate Pass-Through and International Pricing Strategy: A Conceptual Framework and Research Propositions

The extent to which exchange rate fluctuations affect international prices is called “exchange rate pass-through.” This paper develops a conceptual model in explaining how exchange rate fluctuations are channeled into international pricing strategy, and offers research propositions. Our model posits that the extent of exchange rate pass-through in international pricing is affected by the firm's pricing orientation, performance orientation, distribution policy, and brand equity, as well as by exchange rate uncertainty and competitive symmetry.