Pricing Strategies of Multinationals for Global Markets – Considerations and Initiatives

Pratap Mandal

OAI: oai:igi-global.com:245688 • DOI: 10.4018/IJBSA.2020010102

Multinationals require analyzing a number of pricing considerations while competing in globally. Firms require setting different and appropriate prices of their products for each of the markets they operate in. The price of a product is an important criterion while formulating strategies for global markets as it determines to a large extent whether a product will get sold or not. Companies contend with a number of issues in pricing for global markets like geographical pricing, price escalation, transfer prices, dumping charges, pricing for emerging markets, and pricing for individuals at the bottom of the pyramid. There are several legal and ethical aspects in pricing for global markets. These include deceptive or illegal prices – deceptive reference pricing, loss leader pricing, and the bait and switch approach towards pricing; predatory pricing; price discrimination; and price fixing. Each of the issues is discussed in detail. The article focuses on how multinationals should handle and overcome them, establish their businesses in global markets, and generate substantial revenues and profits.

Business and Management Business and Organizational Research Operations & Service Management