Distribution System –
Export pricing is substantially determined by the channels of distribution chose by the exporters (Cavusgil 1988, Mühlbacher et al 1999). Their finding is consistent with that of Stöttinger (2001) that the decision to standardize or adapt the port pricing strategy depends on the channels of distribution selected by the exporters. Sousa and Bradley (2009) find that the degree of price adaptation is considerably influenced by the level of similarity in the distribution infrastructure between the home export markets. In a country characterized by complicated and long distribution channels, the additional costs associated with distribution will be higher than that with short distribution channels
Since the distribution costs …show more content…
Kotabe and Helsen (2001) insist that exporters should maintain their price because the presence of a large number of intermediaries in the distribution channel escalates the price above distribution channel. When an export adapts distribution channel involving a greater number of intermediaries, additional expenditure will be incurred, resulting in the addition of substantial costs of the product by the time it reaches the final customers.
There are two types of exporting methods available to exporter – direct exporting and indirect exporting (Ross 1996). An exporter’s ability to compete successfully in the foreign market depends on its ability to obtain information about customer preference, competitors’ actions, and channel member behaviors (Frazier et al 2009). Direct exporting requires the exporter to establish an export department whose responsibility is to establish the necessary distribution channels. In indirect exporting, exporter locates some form of intermediaries in the same domestic market. Although a distributor prefers greater local control of pricing (Myers and …show more content…
According to them, it is unlikely to find universally successful strategies as the firm’s business position and environmental context play important roles in determining firm’s success. Therefore, strategies developed by considering the environmental context of the firm offer a more effective approach in understanding the determinants of export success (Walters & Samiee 1990). The study by Theodosiou and Katsikeas (2001) suggest four factors influencing the standardization of pricing strategies. These are - customer characteristics and behavior, economic condition, legal conditions, and stage of PLC. Further, since the pricing decision varies across different countries, country specific conditions should be considered before any decision is
Export pricing is substantially determined by the channels of distribution chose by the exporters (Cavusgil 1988, Mühlbacher et al 1999). Their finding is consistent with that of Stöttinger (2001) that the decision to standardize or adapt the port pricing strategy depends on the channels of distribution selected by the exporters. Sousa and Bradley (2009) find that the degree of price adaptation is considerably influenced by the level of similarity in the distribution infrastructure between the home export markets. In a country characterized by complicated and long distribution channels, the additional costs associated with distribution will be higher than that with short distribution channels
Since the distribution costs …show more content…
Kotabe and Helsen (2001) insist that exporters should maintain their price because the presence of a large number of intermediaries in the distribution channel escalates the price above distribution channel. When an export adapts distribution channel involving a greater number of intermediaries, additional expenditure will be incurred, resulting in the addition of substantial costs of the product by the time it reaches the final customers.
There are two types of exporting methods available to exporter – direct exporting and indirect exporting (Ross 1996). An exporter’s ability to compete successfully in the foreign market depends on its ability to obtain information about customer preference, competitors’ actions, and channel member behaviors (Frazier et al 2009). Direct exporting requires the exporter to establish an export department whose responsibility is to establish the necessary distribution channels. In indirect exporting, exporter locates some form of intermediaries in the same domestic market. Although a distributor prefers greater local control of pricing (Myers and …show more content…
According to them, it is unlikely to find universally successful strategies as the firm’s business position and environmental context play important roles in determining firm’s success. Therefore, strategies developed by considering the environmental context of the firm offer a more effective approach in understanding the determinants of export success (Walters & Samiee 1990). The study by Theodosiou and Katsikeas (2001) suggest four factors influencing the standardization of pricing strategies. These are - customer characteristics and behavior, economic condition, legal conditions, and stage of PLC. Further, since the pricing decision varies across different countries, country specific conditions should be considered before any decision is