Global Marketing

Worldwide Pricing Vs. Dual Pricing

In the world of international pricing, companies can use either worldwide pricing or dual pricing. When picking between the two, a company should be asking which one would benefit their product more. As explained in the article by Jared Lewis, there are significant differences between the two even though they have the same goals.

Dual pricing should be used when a company’s product is sensitive to the foreign local market conditions and when a company is involved in extensive trade both at home and abroad. The price for a product in the home market will be different from the price in the international market. Examples of things that might make prices fluctuate in an international market are changes in currency rates, shipping costs, or a company wanting to outprice a competitor. As for worldwide pricing, the price of a product is not as sensitive to local markets. Because the product is less sensitive to the local market, a company can use one set price across several markets.

In the end, it is all about which way would produce the maximum profit for the company. Companies should always perform extensive research into the foreign market before pricing their products.,services%20while%20tourists%20pay%20more.