Setting Global Prices
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Setting Global Prices book
This chapter explores the main issues that need to be faced when making pricing decisions in international markets. After analyzing the numerous influencing factors, the chapter discusses pricing strategies and policies. It focuses on some specific problems that need to be managed by the global company, such as price escalation, transfer prices, terms of payment, and countertrade. There are several factors influencing international pricing decisions that can be categorized into five groups: competitive factors; consumer and cultural factors; product factors; distribution channel factors; and country factors. Big data identify any large volume of data (both structured and unstructured) that come from consumer interactions, retailers, social networks, and so forth and can be analyzed for insights to define better strategic and operative decisions (such as global pricing) that create value for the final consumers. The global price leader often target and dominate a transnational segment where prices are rather homogeneous.