The antecedents of strategic pricing and its effect on company performance in the case of industrial service firms

Abstract

Purpose

The purpose of this research paper is to examine the impact of a number of variables on the adoption of strategic pricing by industrial service firms, and the effect of this adoption on company performance.

Design/methodology/approach

Data were collected from 301 industrial service firms operating in seven different service sectors through a mail survey. Moreover, qualitative research through 35 in-depth interviews was conducted.

Findings

The findings reveal that market orientation and market growth boost the development of strategic pricing. On the other hand, technological and market turbulence hinder this development, while the overall impact of turbulence is reduced in market-oriented firms. Finally, strategic pricing has a positive impact on company performance in both quantitative and qualitative terms.

Research limitations/implications

The adoption of strategic pricing requires attention to a variety of company- and market-related factors, while this adoption can improve various aspects of company performance. The addition of other moderating and mediating effects could certainly provide additional insights.

Originality/value

The current study represents one of the first attempts to empirically examine the above topics in an industrial service context.

Citation

Indounas, K. (2014), "The antecedents of strategic pricing and its effect on company performance in the case of industrial service firms", Journal of Services Marketing, Vol. 28 No. 5, pp. 402-413. https://doi.org/10.1108/JSM-02-2013-0031