International Marketing Exam Questions and Answers

9. What influences the decision of standardization versus adaption of a price when marketing abroad?
There are many factors that may influence standardization vs adaption of a price. In my opinion, biggest influences for adaption are Economic factors and administrative (legal) factors.
For example - One simply can not sell fuel - diesel for the same price in Estonia as in Latvia - mostly because of different tax rules.
Or - selling digital goods - it does not matter the country a product is sold at, chances are that the price will be standardized to combat arbitrage.
10. What is the country of origin effect? Bring an example from personal experience.
Country of origin effect - Consumers desire to purchase a product from specific countries. For example from those that have higher associated quality ( Swiss watches, German cars, etc.) or vice versa - avoid products from certain countries because of bad expectations (Chinese or Russian quality).
Example from my experience: I would rather purchase a shampoo made in Latvia, because I would think that it would be healthier and with less chemicals, than one made in Poland. (Even though the list of ingredients might be exactly the same)
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