A Taxonomy of Export-Pricing Strategies and Their Performance in International Markets

Abstract

Purpose

In this paper, we examine the elements of pricing approaches in export businesses and their performance in an international environment. The elements of pricing approaches consist of cost-based, competitor-based, and value-based decisions made by different levels of management. By providing an integrated, holistic view, we investigate how different types of export-pricing strategies influence export performance, and which elements strengthen or attenuate the outcomes of strategic actions.

Methodology/approach

Using data from a survey of 172 export managers, we test our hypotheses in a two-step approach. First, we use an unsupervised approach to group the export companies and to validate the cluster solution internally and externally. Second, we test our hypotheses regarding export performance.

Findings

The results show that the types of export-pricing strategies are unequally distributed, and the elements of the strategies have different complexities. Export performance varies significantly by type of pricing orientation used.

Citation

Hofer, K.M., Niehoff, L.M. and Wuehrer, G.A. (2015), "A Taxonomy of Export-Pricing Strategies and Their Performance in International Markets", International Marketing in the Fast Changing World (Advances in International Marketing, Vol. 26), Emerald Group Publishing Limited, Leeds, pp. 85-107. https://doi.org/10.1108/S1474-797920150000026005