Marketing Final   Use of flexible cost-plus method to reduce prices in response to unfavorable currency swings

1. Market Holding Strategy

Use of flexible cost-plus method to reduce prices in response to unfavorable currency swings.

2. Price transparency

the ease with which consumers can find out the variety of prices in a market

3. ethnocentric pricing policy

The practice of extending a product's home-country price to all country markets.

4. polycentric pricing

the practice of setting different price levels for a given product in different country markets; also known as adaptation pricing

5. Geocentric pricing

neither fixes a single price worldwide nor allows subsidiaries or local distributors to make independent pricing decisions

6. parallel importing

occurs when companies employ a polycentric, multinational pricing policy that calls for setting different prices in different country markets.

7. Price fixing

an agreement between two or more firms on the price they will charge for a product

8. Market-based transfer price

is derived from the price required to be competitive in the global marketplace. Represents an approximation of an arm's-length transaction.

9. Cost-based transfer price

A transfer price that uses as its foundation the costs incurred by the division producing the goods.

10. negotiated transfer price

Organizations affiliates decide on the pricing