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Pricing Decisions in International Industrial Markets ¨C The Link between Standardization at Market Entry, Pricing Capability, and Price Reactions

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  • Susanne Kreiter
  • Roland Helm

Abstract

International pricing decisions are one of the most paramount decisions managers face. By linking international marketing and competitive dynamics this paper reveals a relationship between product and price standardization at international market entry and defensive price reactions after market entry based on the concept of path dependencies. The empirical evaluation of a structural model shows that standardization positively influences slack resources after adaptation decision and in addition price formation capabilities. In line with the awareness-motivation-capability framework our results show a negative impact of price adaptive capabilities on price reaction.

Suggested Citation

  • Susanne Kreiter & Roland Helm, 2018. "Pricing Decisions in International Industrial Markets ¨C The Link between Standardization at Market Entry, Pricing Capability, and Price Reactions," Business and Management Studies, Redfame publishing, vol. 4(3), pages 26-43, September.
    • Handle: RePEc:rfa:bmsjnl:v:4:y:2018:i:3:p:26-43
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    References listed on IDEAS

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