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Global Marketing

Value Pricing: When ‘Cost Plus’ is Irrelevant

Setting a price tag to an intangible tech product is a challenge for most companies. While it is easy to set price levels for manufactured goods just by calculating raw material, manufacturing, and logistic costs; it is far more complex to come up with a price in SaaS business models. One needs to think long […]

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Global Marketing

An Introduction to Dumping

US Congress defines dumping as an unfair trade practice, where imports sold in the US market is priced with less than 8% profit margin over the production cost. While it is not illegal to dump prices on a global scale (WTO is not regulating the prices), it is often an unwanted scenario and countries put […]

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Global Marketing

What is Differential Pricing?

It’s a well known fact that females get higher quotes on car repairs, compared to males. According to one study; women get almost 10% higher prices than men, when they are uninformed about the market price for a specific repair. This everyday price discrimination actually has a place in Marketing, and it’s called Differential Pricing […]

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Global Marketing

International Pricing Gone Wrong: The Grey Market Risk

According to investopedia, a Grey Market is a market where a product is bought and sold outside of the manufacturer’s authorized trading channels. For an International Grey Market to be established, it needs to be profitable for entrepreneurs to buy from another country for cheap and sell it in another country for more. Grey Markets […]

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Global Marketing

Why Disney Tickets are so expensive?

Disney World is one of the greatest places to enjoy a family vacation. However, with high ticket prices, one of the happiest places in the world has become the most expensive place to visit. The reason why Disney hiked their prices is the introduction of new attractions and new parks. With the new addition, Disney […]

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Global Marketing

Louis Vuitton Pricing Strategy

Well, you may be contemplating on buying Louis Vuitton products but you are not sure about the price being charged in your locality. On this note, it is important noting that Louis Vuitton brands are charged differently in different countries. The price charges are largely dependent on several factors ranging from costs of production, expenses […]

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Global Marketing

Why Gas Prices Fluctuate from City to City?

Have you ever wondered why gas prices vary from city to city, day to day? Gas prices are reliant on the price of oil and there are diverse factors that make the prices vary from one city to another such that a buyer in a specific city buys the gas at completely different prices at […]

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Global Marketing

The Big Mac index

The purchasing power parity is a theory that has been used greatly used to determine the purchasing power of people living in a particular country as compared to another. Here, theorists suggest that when currencies exchange rate is in equilibrium the purchasing power between the countries is equal. However, this concept is considered more formal […]