International Journal of Nonlinear Analysis and Applications

The relationship between global economy and the effect on export pricing strategy of Petrochemical products

Document Type : Research Paper

Authors

1 Department of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran

2 Department of Economics, Isfahan (Khorasgan)Branch, Islamic Azad University, Isfahan, Iran

3 Department of Economics, South Tehran Branch, Islamic Azad University, Tehran, Iran

Abstract

The export of petrochemical products in Iran has a magnificent position due to making added value for the country. Exporting these products, which is considered the largest volume of non-oil exports of the country, has a great impact on the country's GDP. In addition, “Price” as the only element of the marketing mix that generates revenue, has great importance for petrochemical companies. In addition, pricing has been used as a major tool to increase company profitability & also been known as a key element in marketing strategy. Pricing strategy can be observed in a set of internal and external political and economic influences which affects the pricing decisions of a company. As well as the other companies petrochemical companies must be able to arrange for pricing commensurate with the value of their product. These factors depend on the strategies of the petrochemical companies by-product pricing and also how they envision themselves in the future. In this research, descriptive and inferential methods have been used; In the descriptive method, to determine the desired components, the exploratory factor analysis technique and through SPSS software and in the inferential method, the effect of the discovered components of the pricing strategy in increasing exports, using the SEM technique, the desired structural model through software AMOS is provided. Factor analysis of the research shows that 4 hypotheses including "Restriction of entry into the export market”, “Penetration strategy”, “Market development strategy” and “opportunity creating” have been recognized as effective in the export of petrochemical products in Iran.

Keywords

[1] D. Acemoglu, A. Laibson and J. List, Principles of Economics, Translated by S.A. Beheshti and M.H. Naeimipour, Rozaneh Publication, 2019.
[2] S. Apak, K.H. Ta，scıyan, F.H. FundaSezgin and R.R. Lynch, The effect of commercial and social entrepreneurship motives on entrepreneurial intention, Proc.–Econ. Soc. Behav. Sci. 41 (2012), 544–558.
[3] G.J. Avlonitis and K.A. Indounas, Pricing objectives and pricing methods in the services sector, J. Serv. Market. 19 (2015), no. 1, 47–57.
[4] N.C. Caister, K.S. Govinder and J.G. O’Hara, Solving a nonlinear PDE that prices real options using utility-based pricing methods, Nonlinear Anal.: Real World Appl. 12 (2011), no. 4, 2408–2415.
[5] A. Dolgui and J.M. Proth, Pricing strategies and models, Ann. Rev. Control 34 (2019), 101–110.
[6] A. Hinterhuber and S.M. Liozu, Editorial—behavioral and psychological aspects of B2B pricing, Ind. Market. Manag. 47 (2015), 4–5.
[7] M. Kienzler and C. Kowalkowski, Pricing strategy: A review of 22 years of marketing research, J. Bus. Econ. Res. 78 (2017), 101–110.
[8] C. Kohli and R. Suri, The price is right? Guidelines for pricing to enhance profitability, Econ. Horizons 54 (2017) 563–573.
[9] P. Kotler, Principal of Marketing, 10th eds. Prentice Hall, 2002.
[10] R. Lancioni, Pricing issues in industrial marketing, Industr. Market. Manag. 34 (2004), no. 2, 111–114.
[11] R. Lancioni, H.J. Schau and M.F. Smith, Intra-organizational influences on business-to-business pricing strategies: A political economy perspective, Ind. Market. Manag. 34 (2005), 123–131.
[12] H.T. Lin and W.L. Chang, Order selection and pricing methods using flexible quantity and fuzzy approach for buyer evaluation, European J. Econ. Res. 187 (2017), 415–428.
[13] M. Miraldo, Reference pricing and firms’ pricing strategies, J. Health Econ. 28 (2016), 176–197.
[14] M.H. Morris, Separate prices as a marketing tool, Industr. Marketing Manag. 16 (1987), no. 2, 79–86.
[15] E.K. Odongo, N. Agneta and E.O. Orinda, The impact of global cultural differences on the pricing strategies in United States of America, Int. J. Acad. Res. Econ. Soc. Sci. 2 (2012), no. 2.
[16] T.G. Pollock, G. Chen, E.M. Jackson and D.C. Hambrick, How much prestige is enough? Assessing the value of multiple types of high-status affiliates for young firms, J. Bus. Ventur. 25 (2010), 6–23.
[17] Y. Polo, F.J. Sese and P.C. Verhoef, The effect of pricing and advertising on customer retention in a liberalizing market, J. Interact. Market. 25 (2011), 201–214.
[18] D. Shipley and D. Jobber, Integrative pricing via the pricing wheel, Indust. Market. Manag. 30 (2001), no. 3, 301–314.
[19] O. Somervuori, Profiling behavioral pricing research in marketing, J. Product Brand Manag. 23 (2014), no. 6, 462–474.
[20] W. Soon, A review of multi-product pricing models, Appl. Math. Computat. 217 (2018), 8149–8165.
[21] S. Transchel and S. Minner, The impact of dynamic pricing on the economic order decision, Eur. J. Econ. Res. 198 (2018), 773–789.
[22] C.-H. Wu, Product-design and pricing strategies with remanufacturing, European J. Oper. Res. 222 (2020), 204–215.
[23] https://www.nioc-intl.ir/EN/Default.aspx
[24] https://planmanagement-en.nipc.ir/index.aspx?fkeyid=&siteid=131&pageid=6119
 
International Journal of Nonlinear Analysis and Applications
Volume 15, Issue 2
February 2024
Pages 155-164
  • Receive Date: 02 January 2023
  • Revise Date: 10 March 2023
  • Accept Date: 16 March 2023