Title

Strategic Pricing And Detailing Behavior In International Markets

Keywords

Competition; International marketing; Marketing strategy

Abstract

We study three determinants of the levels of price and detailing effort across geographic markets: the within-market response to each variable, the nature of interfirm strategic interactions both within that market and across markets. We empirically examine the interactions of Prozac, Zoloft, and Paxil across the United States, the United Kingdom, Germany, France, and Italy. Our results indicate that all three factors driving marketing mix interactions are at play in this product category. The U.S. market is less price-sensitive than the European markets. Detailing elasticities are comparable across the United States, Germany, and Italy, while the United Kingdom and France show greater elasticity. For the U.S. market, we find that almost all deviations from Nash pricing and detailing levels are due to within-market interactions. In the U.K. market, deviations from Nash prices come about due mostly to across-market interactions - both with the United States as well as the rest of Europe, whereas deviations from Nash detailing levels are mainly due to across-market interactions with the United States. For Italy, we observe that both within and across-market interactions affect price and detailing levels. Overall, the pattern of interactions makes observed prices more similar across countries than prices implied by the estimated elasticities. This underscores the importance of considering within- and across-market interactions in developing multimarket strategy. © 2005 INFORMS.

Publication Date

12-1-2005

Publication Title

Marketing Science

Volume

24

Issue

1

Number of Pages

67-80

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1287/mksc.1030.0029

Socpus ID

10444224997 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/10444224997

This document is currently not available here.

Share

COinS