The constructional model of the effects of pricing strategies on the exporting petrochemical products in Iran

Mostajerian, Mohammademad; Daei-Karimzadeh, Saeid; Dehghani, Ali; Ghobadi, Sara

doi:10.22075/ijnaa.2024.32206.4783

The constructional model of the effects of pricing strategies on the exporting petrochemical products in Iran

Document Type : Research Paper

Authors

Mohammademad Mostajerian ¹

Saeid Daei-Karimzadeh ¹

Ali Dehghani ²

Sara Ghobadi ²

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

² Department of Economics, South Tehran Branch, Islamic Azad University, Tehran, Iran

10.22075/ijnaa.2024.32206.4783

Abstract

This study presents a constructional model that explores the effects of pricing strategies on exporting petrochemical products in Iran. The model is based on a comprehensive review of existing literature and case studies and input from industry experts and stakeholders. The constructional model identifies the main pricing strategies that petrochemical companies in Iran use, such as maximizing profits, increasing market share, and maintaining a certain level of quality. The model also considers the impact of external factors such as demand elasticity, market competition, and regulatory constraints on pricing decisions. Using the constructional model, this paper analyzes the advantages and disadvantages of different pricing strategies in the Iranian petrochemical industry. The model also simulates the impact of different pricing strategies on various stakeholders, including producers, consumers, and the Iranian government. The results of the constructional model suggest that while pricing to maximize profits may lead to short-term gains, it can limit a company's ability to compete in the global market. On the other hand, pricing to increase market share can lead to long-term growth but may require significant investment in research and development. The model also highlights the importance of considering external factors such as demand elasticity and regulatory constraints when making pricing decisions. For example, demand for petrochemical products in Iran may be highly elastic, meaning that small price changes can lead to large changes in demand. Additionally, regulatory constraints such as trade agreements and environmental regulations can significantly impact pricing decisions in the Iranian petrochemical industry. Overall, this paper provides a useful constructional model for analyzing the effects of pricing strategies on exporting petrochemical products in Iran. The findings of this paper can help petrochemical companies in Iran make strategic pricing decisions that take into account both internal and external factors, to ensure their long-term success in the global market. The variables of the study are restrictions of entry into the export market, penetration strategy, market development strategy, and opportunity creation, all of which have effects on product export. Here, the following features are described, penetration strategy (importance coefficient: 0.95), market development strategy (importance coefficient: 0.94 opportunity creation (importance coefficient: 0.9), and the restrictions of entry into the export market (importance coefficient: 0.8). The Alpha Cronbach of the two questionnaires are 0.817, 0.814, in turn, that indicates the appropriate validity.

Keywords

constructional model

effects of pricing

strategies

exporting

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