Study On Pricing Strategy Of Mongolia’s Meat Export To China

Mongolia has paved the path for social and economic development due to its exportation activities.The revenue from exporting accounts for than 60 percent of the country’s GDP.The primary trade partner of the country is China,which is responsible for more than 80 percent of the trade.China itself is a huge importer,especially of meat products.It has introduced a diversification strategy due to which the country imports meat and its byproducts from different countries.The latest country to be included in the plethora of China’s import destinations is Mongolia(for meat).China chooses meat products on the basis of competitiveness and quality.Therefore in order to measure and analyze the competitiveness of Mongolia as a meat exporter to China,this thesis studies the effects of the pricing strategies on the export performance of Mongolian meat products in China.Moreover,three other exporters of meat to China were studied to understand and analyze the differences in strategy by these countries.The traditional and exporting pricing strategies were taken as the predictor variables,competition in export market,market development and commitment towards exporting were taken as mediators and export performance was the predicted variable.The Porter’s diamond theory and Hecksher-Ohlin theory served as the underlying concepts for developing the relationships among variables.A total of 446 exporters served as the sample for this study.227 respondents were from Mongolia and 219 respondents belonged to Canada,Australia and USA.A questionnaire based research design was implemented to collect the data for this study.Both online and personal administration techniques were used to collect data.The employed sampling method was a non-probability technique,purposive sampling and a cross sectional design was followed.The results of the study show that traditional pricing methods do not have a significant effect on export performance alone,however when combined with mediators the relationships were significant.The strategic pricing approach had positive associations with the export performance with and without the intervention of mediators.