Contextus (Jul 2018)

PRICE SETTING IN BRAZIL

  • Juliana Ventura Amaral,
  • Reinaldo Guerreiro

DOI
https://doi.org/10.19094/contextus.v16i2.1093
Journal volume & issue
Vol. 16, no. 2
pp. 186 – 216

Abstract

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Surveys assessing price setting behavior in Brazil have been limited due to the exploration of restricted regions and due to the small size of the samples. In this sense, our study was specifically concerned with providing a comprehensive and updated view about pricing practices in Brazil. Our study was conducted based on a survey with 380 pricing professionals who work in large and small firms from the five Brazilian regions. The results showed that, in Brazil, prices are mainly set by male managers of the sales department. In addition, results provided some support for revealing that cost information is intensively used and cost-plus is the predominant shape of the process for both price makers and price takers. Despite this predominance, it is noteworthy pointing that cost-plus formulas do not necessarily lead to a pricing essence, because margin may connect costs to pieces of information of competitors and value.

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