Week 7

Pricing & Distribution

Week 7 -  Index:

Global Pricing

• Factors influencing the degree of international pricing strategy standardization of multinational corporations
• Antecedents and actions of export pricing strategy:

Global Distribution

• Defining supply chain management
• The globalization of logistics

Factors influencing the degree of international pricing strategy standardization of multinational corporations - Marios Theodosiou, Constantine S Katsikeas. Journal of International Marketing. Chicago: 2001. Vol. 9, Iss. 3;  pg. 1, 18 pgs

Abstract (Article Summary)

In response to certain important gaps identified in the global marketing literature, a study investigates the pricing strategies followed by manufacturing subsidiaries of multinational corporations. Specifically, it attempts to identify the factors that play an important role in determining the degree of international pricing strategy standardization. The findings suggest that the extent to which multinationals standardize their international pricing strategies depends on the level of similarity between home and host countries in terms of customer characteristics, legal environment, economic conditions, and stage of the product life cycle. The study highlights implications of the findings for business practitioners and discuss future research directions along with the limitations.

Antecedents and actions of export pricing strategy: A conceptual framework and research propositions

Matthew B Myers, S Tamer Cavusgil, Adamantios Diamantopoulos. European Journal of Marketing. Bradford: 2002. Vol. 36, Iss. 1/2;  pg. 159, 30 pgs

Abstract (Article Summary)

The export-pricing literature is characterized by a distinct lack of sound theoretical and empirical works. Of the marketing decision variables, pricing has received the least attention in research despite the continued identification of this issue as an important problem area for firms engaged in export marketing. Businesses competing internationally must develop an effective pricing strategy, as this is a critical factor in their operation. Globalization also requires that management coordinate prices across multiple export markets. Research is thus needed on the empirical relationship between an export-pricing strategy (EPS) and the factors that influence this strategy, as well as the relationship between EPS and the performance of the export venture. A multidimensional conceptualization of export-pricing strategy is proposed in order to integrate the various components of an EPS and link it with its antecedents.

Defining supply chain management

John T Mentzer, William DeWitt, James S Keebler, Soonhong Min, et al. Journal of Business Logistics. Oak Brook: 2001. Vol. 22, Iss. 2;  pg. 1, 25 pgs

Abstract (Article Summary)

A management construct cannot be used effectively by practitioners and researchers if a common agreement on its definition is lacking. Such is the case with the term supply chain management - so many definitions are used that there is little consensus on what it means. Thus, the purpose of this paper is to examine the existing research in an effort to understand the concept of supply chain management. Various definitions of SCM and supply chain are reviewed, categorized, and synthesized. Definitions of supporting constructs of SCM and a framework are then offered to establish a consistent means to conceptualize SCM. Antecedents and consequences of SCM are identified, and the boundaries of SCM in terms of business functions and organizations are proposed. A conceptual model and unified definition of SCM are then presented that indicate the nature, antecedents, and consequences of the phenomena.

The globalization of logistics

Marcos Barbalho, Scott Dunn, Vince Colabello. Manufacturing Systems. Wheaton: Feb 1998. Vol. 16, Iss. 2;  pg. 132

Abstract (Article Summary)

The world of logistics is changing rapidly. Barriers to world trade have been reduced or eliminated, starting with the European Economic Community, which transformed the way products were manufactured and distributed in Europe. With the NAFTA and Mercosur agreements in the Americas, companies are developing global supply chains to reduce the overall "net landed cost" of their product while improving customer service. The new supply chains are designed to enable each "node" within a network to perform needed services at the location that optimizes competitive advantage, allowing the purchase and delivery of products globally at though lowest possible costs. Global logistics strategy is a roadmap to achieve quantum benefits and improvements in the way business is conducted.

Postings on week 7 readings- due Feb. 22^nd @12noon