Managing the influence of internal and external determinants on international industrial pricing strategies

In developing pricing strategies, managers typically take into account a wide array of factors, including those that are internal to the firm as well as those that are external to its operations. However, little attention has been paid to how managers consider these factors in combination and how such judgments affect their ultimate choice of pricing strategy. These questions are the focus of this study, particularly as they pertain to international pricing decisions. Drawing on key dimensions thought to influence the relative weights that pricing managers place on both internal and external factors, the study details how those relative weightings influence the ultimate strategies managers employ. Findings indicate that international experience, product technology, degree of internationalization, market share, and certain external factors influence weightings managers give to internal and external factors in the process of making international pricing decisions. Furthermore, these decision-making factors combine to affect the specific strategies pricing managers employ in determining international prices.