The literature has paid increased attention to pricing capabilities as a set of distinctive, complex activities, routines, and processes that drive company performance. Despite this emphasis, little research has addressed the pricing-capabilities construct itself, and no accepted measure of pricing capabilities exists. The purpose of this paper, therefore, is to document the design, development, and validation of a dedicated pricing-capabilities scale, PRICECAP.
Qualitative plus three quantitative surveys.
The present research describes the development of a ten-item measure, PRICECAP, that can be used to assess organizational capabilities related to pricing.
The reliability and validity of the scales were assessed through three separate quantitative studies using exploratory and confirmatory analysis. The PRICECAP scale has a variety of potential applications and can serve as a framework for future empirical research in marketing theory as well as an instrument to assess, compare, and develop pricing capabilities in marketing practice.
Empirical research has provided scales to measure value creation but a scale to measure value capture – i.e. pricing – capabilites is lacking. This study covers this gap and provides a new, parsimonious, ten-item construct to measure pricing capabilities.
Liozu, S. and Hinterhuber, A. (2014), "Pricing capabilities: the design, development, and validation of a scale", Management Decision, Vol. 52 No. 1, pp. 144-158. https://doi.org/10.1108/MD-09-2012-0683Download as .RIS
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