Value co-creation and new service performance: mediated by value-informed pricing
Journal of Business & Industrial Marketing
ISSN: 0885-8624
Article publication date: 9 August 2021
Issue publication date: 16 February 2022
Abstract
Purpose
The purpose of this paper is to examine the influence of the dialogue, access, risk assessment and transparency model of value co-creation processes (dialogue, access, risk and transparency) on new service market performance (NSMP) with the mediating role of value-informed pricing in the context of business-to-business (B2B).
Design/methodology/approach
The data were collected through a cross-sectional survey of 230 managers of the telecommunications industry in Malaysia and analyzed through structural equation modeling using SmartPLS v.3.3.3 software.
Findings
This study found that dialogue and transparency are predictors of NSMP. The findings indicate that value-informed pricing plays a mediating role in the relationship between dialogue and transparency with NSMP.
Practical implications
Disclosing pricing related information, providing up to date information to the customers, making clear to the customers about new offerings would certainly influence value-informed pricing. Thus, managers can enhance customer engagement in the interaction processes to better understand customer expectations of new services and how the new services should be priced.
Originality/value
The link between value co-creation and value-informed pricing has been only conceptualized in literature. This study has opened a new stream of research, examining the relationship of interactional-based value co-creation process with value-informed pricing and NSMP in the context of B2B relationship from providers’ perspective.
Keywords
Acknowledgements
The authors would like to express their sincere and deepest gratitude to Professor Paul Ingenbleek, Wageningen University for giving very constructive and critical comments during development of this paper. We believe the comments have improved the paper to higher extent.
Citation
Taghizadeh, S.K., Rahman, S.A. and Marimuthu, M. (2022), "Value co-creation and new service performance: mediated by value-informed pricing", Journal of Business & Industrial Marketing, Vol. 37 No. 4, pp. 705-722. https://doi.org/10.1108/JBIM-10-2020-0469
Publisher
:Emerald Publishing Limited
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