How are the ethnocentric approach and the geocentric approach alike and different in regards to the marketing mix? Why do most international firms following a geocentric approach use a standard price policy?
What will be an ideal response?
Both approaches support the use of standardization of the marketing mix. However, the ethnocentric approach supports the use of what is done in the domestic market while the geocentric approach supports the use of a standardized solution that is not based on any particular market. A standard pricing policy states that the firm will use a standard price in each country in which it sells products. A geocentric approach suggests a standardized international marketing mix. Therefore, a geocentric approach is consistent with a standard price policy.
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