International Marketing in Germany – From a cultural perspective

 
Food Companies 
 
Beverage 
Company 
Garment Companies 
 
Industrial 
Company 
PRICING MIX 
Wasa 
Bröd AB 
Göteborgs 
Kex AB 
The 
Absolut 
Company AB 
Nudie 
Jeans 
Marketing AB 
Filippa 
K 
AB 
Precimeter 
Group 
Pricing 
Strategy 
Adapted 
Adapted 
Adapted 
Standardized 
N/A 
Standardized 
List Price 
Adapted 
Adapted 
Adapted 
Standardized 
Standardized 
Standardized 
/Adapted 
Discounts and 
Allowance 
N/A 
N/A 
Adapted 
Adapted 
Standardized Adapted 
Payment Period 
N/A 
Standardized 
Adapted 
Standardized 
N/A 
Adapted 
N/A = Not Available 
The interviewed food and beverage companies all adapt their pricing strategies as well as list 
prices having lower prices in the German market than in Sweden. With regard to German 
culture this is probably due to the fact that the German market is a price pressed market. 
Germany was one of the founders of the European Coal and Steel Union and is today one of 
the central players in the European Union, which has lead to higher price pressure due to 
factors like lower customs, higher competition and larger trade volumes. Germany’s 
geographical position adds to the price pressure. Its central position in the European trade 
environment makes it a transit hub for European products. The key position increases product 
diversity and provides easy access to low-labor production in Eastern Europe increasing price 
pressure additionally.
The garment industry as well as the industrial company in the study applies standardized list 
prices and pricing strategies. This doesn’t seem to be a matter of German culture, rather a 
matter of a wish of having a univocal brand all over the world. To be added, however, is the 
fact that within the garment industry it is common to make use of the internet as well as 
catalogues when shopping in Germany. This makes it harder for them to adapt prices within 
the industry. This doesn’t seem to be the case regarding the food- and beverage industry in the 
study.

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69 
German customers are concerned about prices, demanding low prices to a good quality. Their 
preferences are nationalistic towards German high quality products, creating a tougher climate 
for international companies in the German market. Germany has also a high rate of 
unemployment, an aging population as well as a high rate of immigrants, which leads to a 
higher demand of low priced products.
Germany has many large cities situated close to each other and is a dense country compared 
to many other countries. This creates higher price pressure in the German market since 
products are available for comparison and purchase without large efforts. 
Precimeter Group adapts its list price only in the matter of package price adding an extra 
charge for the package. This seems to be an effect of German culture, since Germans are 
concerned about details, and the fact that right should be right, they want to pay for 
everything. In the German industry it also seems to be a wish that the quality has to be 
motivated by the price. This means that when they have come to the conclusion to buy 
something they have checked the quality that well that they are also willing to pay the offered 
price. 
Discounts and allowances are mostly adapted often applying the German discount: “Skonto”. 
Putting this into the perspective of German culture, it seems to come from the fact that 
Germans are concerned about rightness, wanting to be rewarded if paying early. In case of 
late payment, it signals unreliability. Another reason is probably that Germans are high graded 
in their uncertainty avoidance, wanting to specify and include all details, such as the Skonto 
discount or package costs, in contracts. 
The payment period is adapted or standardized and mixed between the companies and 
industries in the study. The adaptation to shorter payment period (Precimeter Group) seems to 
be a consequence of the fact that Germans do what is decided, meaning that a shorter period 
of payment is possible. The standardization of period of payment seems to be a matter of 
convenience rather than of culture.