Hohl, D. N. (2015). International pricing : a model to efficiently arrive at a regional price differentiation strategy [Master Thesis, Technische Universität Wien]. reposiTUm. https://doi.org/10.34726/hss.2015.30729
differentiation strategy; SME; pricing strategies; customer value; price-corridor model
en
Abstract:
Today it is common for Small Medium Enterprises (SME) to be active in the global markets. In the EU 81% of all exporting enterprises are SME. Often these companies are specialized and offer solutions to a limited but profitable market. The international trade comes with the need to price products for customers all operating under different conditions making even a globally used product subject to price differentiation. How can SMEs selling specific niche products in several regional markets reach appropriate pricing strategies? SME often do not have the resources to carry out extensive market research. The present thesis has the objective to develop a model which allows SMEs to efficiently arrive at a regional price strategy. Price driving conditions are investigated and segmented into 4 sections, customer value, market structure, regulatory factors and cost structure. These factors are evaluated and variables derived to form a Price Corridor Model. The model gives an indication on a price for a product in a target market based on minimum-- and maximum price. Optional price sensitivity by customer segment can be evaluated.
