Price adaptation in export markets

Abstract

Purpose -The purpose of this paper is to identify the key factors that influence price adaptation in export markets. Design/methodology/approach -The conceptual model was tested empirically using data collected by mail questionnaire in a sample survey of 140 firms. The results were analysed using structural equation modelling and the method of estimation was maximum likelihood (ML). Various statistical tests show that the results were reliable and valid. Findings -The results reported here suggest that while controlling for the size of the firm, the degree of price adaptation is strongly influenced and conditioned by the degree of product, promotion, and distribution adaptation as well as by the differences that exist between the home and the foreign market. Originality/value -Despite calls for research on the adaptation of pricing in export markets little headway has been made in understanding the issue in the literature. This study adds to the limited empirical research work done in this area. Although past research points to a link between product adaptation and price adaptation and between distribution adaptation and price adaptation, empirical research that includes simultaneously the link between the three elements of the marketing mix (product, promotion, and distribution adaptation) and price adaptation is largely missing in the literature. These relationships have been tested in this paper and found to be relevant to the understanding of pricing in international markets.

The influence of distributor support and price adaptation on the export performance of small and medium-sized enterprises

“…Drawing on previous studies Robertson and Chetty, 2000;Morgan et al, 2004), we operationalized export performance using four items: meeting expectations, export sales growth, export profitability, and export 26 market share. In relation to price adaptation we adopted the measures developed by Sousa and Bradley (2009b). Price strategy was measured by the level of adaptation of margins, credit concession, and pricing strategies.…”

“…For instance, a recent study by Sousa and Bradley (2009b) has found that distribution strategies may influence a firm's export pricing strategy. This suggests that instead of hypothesizing that distribution support and price adaptation independently influences export performance, future studies should consider the possible interaction effects of these two constructs.…”

Développement et validation d’une échelle de mesure de l’accompagnement des PME à l’exportation

“…La quasitotalité des auteurs applique une échelle dichotomique (oui/non) pour savoir si l'entreprise interrogée a utilisé les différents SAE. Certains additionnent les réponses positives pour créer un indice du degré d'utilisation des SAE (Donthu et Kim, 1993 ;Singer et Czinkota, 1994 ;Marandu, 1995 ;Francis et Collins-Dodd, 2004 ;Bonner et McGuinness, 2007 ;Soussa et Bradley, 2009) ou distinguer des catégories d'entreprises en fonction du nombre de « oui » (non-utilisatrices, peu utilisatrices, moyennement ou très utilisatrices) (Gençturk et Kotabe, 2001). D'autres auteurs complètent l'indice par un score de satisfaction ou de bénéfice perçu sur les SAE utilisés (voir par exemple, Ali et Shamssuddoha, 2007 ;Shamssuddoha, Yunus Ali et Oly Ndubisi, 2009a, 2009bFaroque et Takahashi, 2012).…”

“…L'outil permettrait de répondre au besoin de mesurer plus précisément l'impact de chaque type d'accompagnement à l'exportation (Shamssuddoha, Yunus Ali et Oly Ndubisi, 2009a, 2009bFaroque et Takahashi, 2012). En accord avec la littérature, nous proposons que les SAE de type « formation et information » influencent les connaissances informationnelles de l'entreprise (au sens de Johanson et Vahlne, 1977) tandis que les SAE « mise en réseaux » et « prospection » agissent plus spé-cifiquement sur les connaissances expérientielles (Singer et Czinkota, 1994 ;Shamssuddoha et Yunus Ali, 2006 ;Soussa et Bradley, 2009). Les SAE « mise en réseaux » et « prospection » influencent également les réseaux de l'entreprise en lui permettant d'établir de nombreux contacts avec des fournisseurs, transporteurs, partenaires potentiels, clients et structures d'accompagnement étrangères (Seringhaus, 1986 ;Demick et O'Reilly, 2000 ;Jordana et al, 2010 ;Eurofound, 2012).…”

An Exploratory Study of Brand Success: Evidence From the Food Industry

“…The Quicksearch software allowed us to "force" the respondent to answer on all questions from the questionnaire, in a manner that they could not pass to the next question if they do not answer on previous, which provided us with no missing values in the data set. In order to avoid the creation of common method variance that may defile construct relationships, respondents were not informed about specific goal of the research (Sousa & Bradley 2009). …”