Conceptualisation of the consultancy pricing paradox

Abstract

Purpose

Despite widespread demand for consultants and especially within the surveying profession, driving forces of service/pricing/quality are not fully understood and have received minimal research attention. The purpose of this paper is to review contemporary knowledge in this field, highlighting en route the dilemmas of the consultancy pricing paradox.

Design/methodology/approach

Methodology is of axiological, philosophical tradition – induction and inference, generalized concepts and theories. A critique of extant literature underpins a theoretical pricing problem framework, a future research agenda, and a model of the pricing paradox.

Findings

The study elucidates paradoxical aspects regarding value perceptions, objectives, strategies, cost recovery, competition and systematic processes. It conceptually models the dilemma of service pricing and suggests a research agenda based on process and value, nature of service, competence and branding.

Research limitations/implications

The formalisation of the paradox and development of the conceptual model opens opportunities for a new research agenda in the future, which is highlighted as part of the study.

Practical implications

Advancement of theory will impact pricing paradigms.

Originality/value

The paper presents a novel conceptualisation of the subject.

Citation

Owusu‐Manu, D., Badu, E., Edwards, D.J., Adesi, M. and Holt, G.D. (2012), "Conceptualisation of the consultancy pricing paradox", Structural Survey, Vol. 30 No. 4, pp. 357-378. https://doi.org/10.1108/02630801211256706