Question

Elaborate on the applicability of both dual pricing strategy and global pricing strategy for the various market. Also, explain the advantage and disadvantages of using each strategy.

Answer 1

Dual Pricing is a way of selling the same product at different prices at different markets. It is generally use to wipe of the competitor by gaining the market share through lower prices in one of the markets. This is considered illegal if they intention is to dump the goods into the foreign market.
Advantages-
-Balancing out the losses of one market from the profits earned from another market.
-Helps in offsetting the currency exchange rates
-Meeting higher demands where the market is untouched
-Protects domestic business
-counter cost benefits in different markets
Disadvantages
- It is illegal in some markets if they idea is to capture the foreign market
-It can increase the cost of exports and may lead to losses
-limits the number of goods at times which are available to customer
-causes discrimination among consumers

Global pricing strategy or international pricing strategy is considering various factors which determine the price of the product that may be set globally. These factor include government and legal regulations , demand, economic environment, competition, market structure, infrastructure, culture and consumer behavior. Unlike dual pricing the price of the product remains same globally.

Advantages
-Fairness in price so no discrimination in charging prices
-Sensitive to local market where the product is sold.
- builds customer loyalty and goodwill
-ease of administration

Disadvantages
- they are complex decisions as they are affected by multiple factors
-Fluctuations in currency and costs make it difficult to implement
-The purchasing power of people is not same
- may not be able to meet the target customer due to high price