Pricing Decisions in International Industrial Markets ¨C The Link between Standardization at Market Entry, Pricing Capability, and Price Reactions

Susanne Kreiter and Roland Helm

Business and Management Studies, 2018, vol. 4, issue 3, 26-43

Abstract: International pricing decisions are one of the most paramount decisions managers face. By linking international marketing and competitive dynamics this paper reveals a relationship between product and price standardization at international market entry and defensive price reactions after market entry based on the concept of path dependencies. The empirical evaluation of a structural model shows that standardization positively influences slack resources after adaptation decision and in addition price formation capabilities. In line with the awareness-motivation-capability framework our results show a negative impact of price adaptive capabilities on price reaction.

Keywords: international pricing; standardization; adaptation; pricing capability; price reaction; industrial goods; emerging markets (search for similar items in EconPapers)
Date: 2018
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