Question

Pricing Strategy Competition is a serious business and sometimes fierce. The stakes are high. Unless the firm has a monopoly, pricing is one area that may be intensely competitive, and not all competition is fair or legal. When considering pricing strategy, the international business manager must be aware of the strategies of other firms when setting the firm's own strategy.
Pricing is an important part of the marketing mix. Firms must look at charging different prices in different markets, pricing as a competitive weapon, and the regulatory factors including government control and antidumping regulations. As managers set prices under the strategy, they must be aware of many different dynamics. All will affect the design and implementation of a pricing strategy.
Determine if it is a consideration of price discrimination, strategic pricing, or regulatory influence.

1. Predatory pricing
2. Competition policy
3. Antidumping regulations
4. Multipoint pricing
5. Experience curve pricing
6. Price elasticity of demand
7. National markets separate

Answer 1

Answer:

1. Strategic pricing

2. Regulatory influence

3. Regulatory influence

4. Strategic pricing

5. Strategic pricing

6. Price discrimination

7. Price discrimination

Explanation:

1. Predatory pricing is a price strategy in which companies deliberately lower their prices in an attempt to wipe out all the competition in that market segment. While maybe beneficial for customers in the short run, due to lower prices and more diverse choice of products, in the long run, this strategy can be more harmful than monopoly and is therefore under regulations by government bodies. However, it is a way of strategic pricing.
2. Competition policy falls under regulatory affairs, as governments have rules that encourage competition and which restrict monopolies
3. Form of government intervention where government imposes tariffs on imported goods that would without it have price below market fair value
4. Strategic pricing strategy where its implementation in one market could have an impact on competitors in another market
5. Strategic pricing where multiplication of tasks performed leads to lowering of the cost of each performance. Company will lower its prices at some market placing itself in the lower ends of experience curve
6. Price discrimination as it can be used for assigning different prices to different goods, which have different price elasticity. Some products are more elastic, while demand for others won't change even with significant changes in prices
7. Price discrimination as it becomes possible to charge different prices at different markets