Definition: The Ethnocentric Approach is one of the methods of international recruitment wherein, the HR recruits the right person for the right job for the international businesses, on the basis of the skills required and the willingness of the candidate to mix with the organization’s culture

For instance, self-reference criterion (SRC) is the unconscious reference to one’s own cultural values and knowledge to base decisions on which can impede the ability to make good decisions in a foreign market the ability to be flexible when dealing with foreign cultures

Ethnocentrism in marketing refers to the preference of products from one’s own home country rather than purchasing items from other countries It can also refer to the way a company markets its products

Extension/Ethnocentric This policy requires that the price of an item be the same around the world and that the importer absorbs freight and import duties This approach has the advantage of extreme simplicity because no information on competitive or market conditions is required for implementation

In term of strategic orientation, ethnocentrism and polycentric focus more onhome country oriented, while geocentric focus on global oriented Ethnocentric focus more on industrial product while polycentric focus on consumer goods

Apart from the four basic pricing strategies — premium, skimming, economy or value and penetration — there can be several other variations on these

Price adaptation is the ability of a business to change its pricing models to suit different geographic areas, consumer demands and prevailing incomes The more adaptability a business has, the better chance it has of appealing to more consumers

Price lining, also referred to as product line pricing, is a marketing tool, where items of the same product group are set on different price points The higher the price, the higher quality consumer assumes the product is

Here are the steps on how to set a price products:

• Step 1: Selecting the Pricing Objective
• Step 2: Determining Demand
• Step 3: Estimating Costs
• Step 4: Analyzing Competitors’ Costs, Prices, and Offers
• Step 5: Selecting a Pricing Method
• Step 6: Selecting the Final Price

Discount and allowance pricing can take many forms: Discounts can be granted as a cash discount, a price reduction to buyers who pay their bills promptly Promotional allowances refer to payments or price reductions to reward dealers for participating in advertising and sales support programmes

Businesses use discount pricing to sell low-priced products in high volumes With this strategy, it is important to decrease costs and stay competitive For example, if a retailer has periodic large discounts then it may condition your market to wait for these sales, lowering profit margins

9 Factors Influencing Pricing Decisions of a Company

• Price-quality relationship:
• Product line pricing:
• Explicability:
• Competition:
• Negotiating margins:
• Effect on distributors and retailers:
• Political factors:
• Earning very high profits:

There are a number of factors to take into account when reaching a pricing decision:

• Customers Price affects sales
• Competitors A business takes into account the price charged by rival organisations, particularly in competitive markets
• Costs

Five Good Pricing Strategy Examples And How To Benefit From Them

• 5 pricing strategy examples and how to benefit form them
• Competition-based pricing
• Cost-plus pricing
• Dynamic pricing
• Penetration pricing
• Price skimming

ing strategy examples

• Price skimming When you use a price skimming strategy, you’re launching a new product or service at a high price point, before gradually lowering your prices over time
• Penetration pricing
• Competitive pricing
• Premium pricing
• Loss leader pricing
• Psychological pricing
• Value pricing

Types of Pricing Strategies

• Demand Pricing Demand pricing is also called demand-based pricing, or customer-based pricing
• Competitive Pricing Also called the strategic pricing
• Cost-Plus Pricing
• Penetration Pricing
• Price Skimming
• Economy Pricing
• Psychological Pricing
• Discount Pricing

Cost-plus pricing is the simplest pricing method A firm calculates the cost of producing the product and adds on a percentage (profit) to that price to give the selling price This appears in two forms: the first, full cost pricing, takes into consideration both variable and fixed costs and adds a % markup

Types of Pricing Strategies – 7 Major Types: Premium, Penetration, Economy, Price Skimming, Psychological, Product Line Pricing and Pricing Variations

• Premium Pricing:
• Penetration Pricing:
• Economy Price:
• Price Skimming:
• Psychological Pricing:
• Product Line Pricing:
• Pricing Variations:
• Demand Oriented Pricing:

In other words, cost-based pricing can be defined as a pricing method in which a certain percentage of the total cost of production is added to the cost of the product to determine its selling price Cost-based pricing can be of two types, namely, cost-plus pricing and markup pricing

3 ‘Types’ Of Markets Every Entrepreneur Should Know About

• New Markets
• Existing Markets
• Clone Markets