The impact of price on export performance indicators of companies

Abstract

From the perspective of creating an optimized international marketing mix for internationally oriented domestic companies, it is of great impor­tance to apply the market-oriented pricing strategy. Beside production costs, it is also important to take into consideration environmental factors because they facilitate the selection of the appropriate pricing methods. For achieving success in international business it is also relevant to observe the changes in competitors' perception and their impact on business operations. That is why it is considered as important to collect and analyze information about competitors, in this case-particularly related to the price. The intensity of competition and competitive relations are of great importance for making decisions regarding prices. The aim of this research was to determine the impact level of price on export performance indicators for the chosen sample of 50 companies on the territory of the Republic of Serbia, which export various kinds of products. In more specific terms, export performance indicators imply market share, sales volume and profitability. The correlation between price and the mentioned export performance indicators has also been determined. Despite various theoretical approaches that emphasize the relevance of price in international business, our research results show that the role and importance of price indicators on export performance is not crucial.

Keywords

• price
• international marketing
• profitability
• sales volume
• market share
• export