Global Pricing Strategies Quiz

What determines the price floor in global pricing decisions?

• Product cost

• Perceived value

• Competitive pricing

• Customer demand

Which pricing strategy targets innovators and early adopters?

• Market Skimming

• Geocentric Pricing

• Target Costing

• Market Penetration

What pricing approach adjusts to different market environments without headquarters control?

• Rigid Cost-Plus Pricing

• Polycentric Pricing

• Ethnocentric Pricing

• Flexible Cost-Plus Pricing

Which of the following best describes export price escalation?

• Increase from currency depreciation

• Added duties and transport raise prices

• Discount on exported goods

• Drop in domestic price

Which strategy involves designing products to meet a pre-set target price?

• Skimming Pricing

• Target Costing

• Cost-Plus Pricing

• Captive Pricing

Which firm is used in the example of managing inflation in Brazil?

• IKEA

• Local retailers

• VF Corporation

• Sony

What does the law of one price imply?

• Prices remain fixed globally

• All customers access best product at best price

• Currency exchange rates are stable

• Markets are protected

Which company used polycentric pricing resulting in varied prices across countries?

• Mattel

• IKEA

• Levi Strauss

• Microsoft

What tactic helps global firms reduce the attractiveness of gray market goods?

• Increase freight costs

• Strengthen import quotas

• Product differentiation

• Price harmonization

What is the key challenge in ethnocentric pricing?

• Simplicity in operations

• Reflecting local market conditions

• Managing distribution

• Tax evasion risks