Scenario: Old World Ltd.
Old World Ltd., a London-based furniture manufacturer, is establishing its global distribution, pricing, and promotion strategies. Being new to global business, the firm is seeking your help in making its decisions.
-If Old World adopts different selling prices in export markets than it has in the British market,it would be following a ________ pricing strategy.

Question

Quizplus · Accepted Answer

A dual pricing strategy refers to setting different prices for the same product in different markets. In this scenario, if Old World Ltd. adopts different prices in export markets than in the British market, it would be following a dual pricing strategy. This could be due to factors such as local competition, exchange rate fluctuations, or differences in production costs. By implementing a dual pricing strategy, Old World Ltd. can tailor its prices to local market conditions and remain competitive without affecting its domestic market.