Implications of pricing strategy–venture strategy congruence: an application using optimal models in an international context

• Published in: Journal of business research 2004-06, Vol.57 (6), p.591-600
• Main Author: Myers, Matthew B.
• Format: Article
• Language: English
• Subjects: Business strategies; Business studies; Correlation analysis; Firm theory; Global pricing; Global strategy; International markets; International trade; Market strategy; Mathematical models; Optimal models; Organizational behavior; Pricing; Pricing policies; Studies
• ISSN: 0148-2963; 1873-7978
• DOI: 10.1016/S0148-2963(02)00410-1

The value of any pricing strategy is questionable if it is not congruent with the overall strategy of the firm. Pricing strategies, which do no reflect organizational goals, can detrimentally affect performance outcomes. Determining the benefit of specific strategies calls for models adapted to effectively measure the congruence between pricing strategies and venture strategies, and the influence of that congruence on the appropriate measure of venture performance. In this article, the author uses a methodological alternative to traditional linear, analogue and distance models for determining the value of pricing strategies in international operations. Using data from a survey of international marketing managers, this article investigates the value of specific pricing strategies relative to achieving stated international venture objectives, this using optimal models with polynomial regression equations augmented by response surface methodology (RSM). The results indicate that specific pricing strategies differ significantly in their ability to enhance venture performance.