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Do multinational enterprises from developed and emerging economies differ in their price discrimination strategies? Evidence from Africa
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DOI：10.1002/smj.70102.png)
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Abstract
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Do multinational enterprises from developed (DMNEs) and emerging (EMNEs) economies differ in their price discrimination strategies in Sub-Saharan Africa? Using an abductive approach, we analyze novel data from laundry detergent markets in Cameroon, Ghana, and Ivory Coast, where frugal products are widely consumed. We find that, compared to EMNEs, DMNEs charge smaller price premia for frugal relative to non-frugal products by 21%–28%. We examine several plausible explanations and find suggestive evidence that the greater visibility of DMNEs motivates them to exercise caution in setting greater price premia for their frugal relative to non-frugal products. Even within DMNEs, more visible firms charge smaller price premia than less visible firms.
Keywords:
abductive approach
Africa
DMNEs
EMNEs
multinational enterprises
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