True or False: An effective global pricing strategy is established by setting the same prices in every market.

An effective global pricing strategy cannot be established by setting the same prices in every market because of the diverse economic conditions, purchasing power, consumer preferences, and local competition that exist across different regions and countries. Each market may have unique factors that influence how much consumers are willing or able to pay for a product.

For instance, what might be a reasonable price in a developed country could be prohibitively expensive in a developing market. Additionally, factors such as distribution costs, tariffs, and taxes can vary significantly from one country to another, further complicating the feasibility of a uniform pricing strategy.

A successful global pricing strategy often requires careful consideration of local market conditions and may involve customizing prices based on these factors to align with the value perceived by consumers in each market segment. This nuanced approach allows businesses to maximize market penetration and profitability while responding effectively to local dynamics.