ABSTRACT
Because price is the only element of the marketing mix that generates revenue, it is a major strategic tool when making marketing decisions. Global marketers use price to attract customers, communicate about quality, and influence competitive behaviors. The objective with pricing is to create demand for the products while maintaining profitability. Pricing and costs, after all, will determine the long-term viability of a global marketing initiative. Different dynamics come into play when setting prices in other markets, so it is important to understand factors that influence international pricing and how to respond.
