Customer based pricing : The implementation of standardization and adaptation in the international pricing strategy

Abstract: Problem: In a world that is becoming increasingly globalized, firms try to exploit the opportunities of a more interconnected world. Although the world is becoming more homogenous differences still exist. This creates the need for studying when the two strategies of standardization and adaptation should be adopted. Purpose: This thesis investigates international pricing strategies of Swedish SMEs and the implementation of standardization and adaptation. Research Question: How are Swedish SMEs standardizing and adapting prices as part of their international pricing strategy? Methodology: This thesis is a qualitative study conducted with an abductive approach. An exploratory design was applied, researching four Swedish SMEs. Conclusions: Results shows that Swedish SMEs are not standardizing or adapting exclusively but instead the level of utilization ranges between them. When adaptation in price is being made, it is mainly to target the customers. The study also distinguished a trend where SMEs is striving for a uniform pricing strategy as well as that firms using distributors tend to acquire decreased control over the end price.