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Article
Publication date: 8 February 2013

Paul T.M. Ingenbleek and Ivo A. van der Lans

This article aims to address the relationship between price strategies and price‐setting practices. The first derive from a normative tradition in the pricing literature…

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Abstract

Purpose

This article aims to address the relationship between price strategies and price‐setting practices. The first derive from a normative tradition in the pricing literature and the latter from a descriptive tradition. Price strategies are visible in the market, whereas price‐setting practices are hidden behind the boundaries of an organization.

Design/methodology/approach

The study deals with the relationship between price strategies and price‐setting practices that refer to the use of customer value, competition, and cost information. Hypotheses are tested on survey data on 95 small and medium‐sized manufacturing and service firms in The Netherlands.

Findings

The results show that price strategies and price‐setting practices are related because strategies are implemented through price‐setting practices. However, some firms do not pursue any of the strategies indicated by pricing theory, some firms engage in practices for no clear strategic reasons, and some firms insufficiently engage in appropriate practices to implement their strategic choices.

Research limitations/implications

The results are limited to small companies. Researchers should examine why firms may not pursue any price strategy that is offered by pricing theory. They may also focus on organizational learning and pricing capabilities.

Practical implications

Managers need greater awareness about the price strategies they can use, should be cautious about a potential mismatch between price strategies and price‐setting practices, and should reassess whether their firms are capable of engaging in the appropriate practices.

Originality/value

Linking price strategies to price‐setting practices reduces conceptual confusion in the pricing literature and may help to specify the gap between pricing theory and practice.

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Article
Publication date: 1 March 1996

Mark B. Vandenbosch

The set of compositional approaches to product space development is expanded to include confirmatory methods. Specifically, describes and compares product space…

Abstract

The set of compositional approaches to product space development is expanded to include confirmatory methods. Specifically, describes and compares product space development (perceptual mapping) via confirmatory factor analysis and partial least squares with the aid of an empirical example. Both of these procedures are widely used in causal or structural equation modelling. Since they tend to be confirmatory extensions to factor analysis and principal components analysis, the approaches are also well suited to the development of product spaces. Confirmatory approaches have several advantages over exploratory approaches including the incorporation of prior knowledge, the elimination of rotational indeterminacy, and the use of a wide variety of measurement tools to assess the reliability and validity of model results.

Details

European Journal of Marketing, vol. 30 no. 3
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 9 February 2010

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518

Abstract

Details

Marketing Intelligence & Planning, vol. 28 no. 1
Type: Research Article
ISSN: 0263-4503

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Book part
Publication date: 1 November 2008

Andreas Hinterhuber

After pioneering, but insular, work on the conceptualization and measurement of customer value in business markets undertaken in the 80s and 90s, interest in this topic is…

Abstract

After pioneering, but insular, work on the conceptualization and measurement of customer value in business markets undertaken in the 80s and 90s, interest in this topic is substantial since the beginning of this decade. Despite this recent interest, marketing scholars concur that value in business markets is still an under-researched subject. This contribution to the debate is threefold. The paper first proposes an own model of customer value conceptualization in business markets; based on several rounds of testing this theoretically grounded model in managerial practice indications exist to conclude that this model may offer benefits over current models.

Secondly, the paper provides a comprehensive survey of pricing approaches in industrial markets. The paper integrates this literature overview with own empirical findings. Concurrently the paper summarizes extant research on the link between pricing approach and profitability in industrial markets. The paper thirdly proposes a framework for value delivery and value-based pricing strategies in industrial markets. Proposing such a framework is both useful as well as necessary. Useful, since this framework guides new product development and pricing decisions and assists in the implementation of price-repositioning strategies for existing products; necessary, since the theoretical and practical adoption of value-based delivery and pricing strategies may have suffered from the lack of a unifying conceptual framework. Two case studies, one involving the pricing decision for a major product launch at a global chemical company, the other involving value delivery at an industrial equipment manufacturer, illustrate the practical applicability of the proposed framework.

Details

Creating and managing superior customer value
Type: Book
ISBN: 978-1-84855-173-2

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Article
Publication date: 1 June 2015

Kostis Indounas

The purpose of this paper is to measure the extent to which selected contextual variables have an impact on the adoption of strategic pricing by industrial service firms…

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1308

Abstract

Purpose

The purpose of this paper is to measure the extent to which selected contextual variables have an impact on the adoption of strategic pricing by industrial service firms, and determine the effect of the adoption of strategic pricing on company performance.

Design/methodology/approach

Data were collected from 154 industrial service firms operating in four different service sectors through a mail survey. Moreover, qualitative research through 20 in-depth interviews was carried out.

Findings

The study’s main findings indicate that market orientation along with a leading position in the market 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, a positive impact of strategic pricing on company performance was found.

Research limitations/implications

The adoption of strategic pricing requires attention to a variety of factors, while this adoption can improve both qualitative and quantitative aspects of the company’s performance. The significance of these findings notwithstanding, the context of the study does limit generalization of its findings to other industrial service sectors and national contexts.

Originality/value

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

Details

Journal of Business & Industrial Marketing, vol. 30 no. 5
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 20 November 2017

Mario Kienzler

While marketing and management research suggests that managers’ individual characteristics influence pricing decisions, the influence of personality traits in this context…

Abstract

Purpose

While marketing and management research suggests that managers’ individual characteristics influence pricing decisions, the influence of personality traits in this context remains unclear. This study aims to explore the relationship between the five basic personality traits of the five-factor model (extraversion, conscientiousness, openness to experience, agreeableness and neuroticism) and three basic pricing practices (value-, competition- and cost-informed).

Design/methodology/approach

On the basis of a non-experimental decision-making scenario, the analysis examines the pricing decisions of 57 managers in relation to a new business service.

Findings

The results suggest that managers’ conscientiousness and openness to experience are positively related to preference for value-informed pricing. Similarly, managers’ agreeableness is positively related to preference for competition-informed pricing and managers’ openness to experience and agreeableness are positively related to preference for cost-informed pricing.

Research limitations/implications

The cross-sectional study design does not support causal inference, and the modest sample size may limit the external validity of the findings.

Practical implications

By increasing awareness of the influence of personality on pricing preferences, the findings are of relevance to managers who are directly involved in pricing decisions. Additionally, the findings are informative for managers who must assign responsibility for pricing authority within firms.

Originality/value

This empirical exploration of the relationship between certain personality traits and specific pricing practices contributes to the literature on psychological aspects of pricing theory by showing how managerial personality influences pricing preferences under uncertainty.

Details

Journal of Product & Brand Management, vol. 26 no. 7
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 10 May 2021

Deonir De Toni, Ricardo Antonio Reche and Gabriel Sperandio Milan

This study aims to propose and test a theoretical model that contemplates antecedent constructs of organizational performance, as well as the interaction among them.

Abstract

Purpose

This study aims to propose and test a theoretical model that contemplates antecedent constructs of organizational performance, as well as the interaction among them.

Design/methodology/approach

A survey was conducted with 151 Brazilian exclusive stores in the planned furniture segment. The data analysis was performed using two statistical techniques, focused on hierarchical regression and mediation and moderation tests.

Findings

Among the main results of the survey are the direct and significant effects of value-based pricing and innovation strategies and the indirect effect of market orientation on market performance. As for moderation, the authors identified that profitability moderates the relationship between value-based pricing and market performance, and the degree of sales projection moderates the relationship between market orientation and market performance.

Originality/value

The insertion of value-based pricing as a variable in quantitative analysis of market performance meets the lack of academic research. When the constructs are combined or interacted with each other, they have a stronger and more significant effect on performance. In addition, this work proposes two moderating variables that can interfere in the relationship between the analyzed constructs (profitability and sales projection). It was identified that the relationships between the constructs and that the orientation towards the market (despite not directly impacting market performance) interfere with the relationship based on mediation of variable innovation strategies and value-based pricing.

Details

International Journal of Productivity and Performance Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0401

Keywords

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Book part
Publication date: 30 July 2018

Abstract

Details

Marketing Management in Turkey
Type: Book
ISBN: 978-1-78714-558-0

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Article
Publication date: 6 November 2017

Ernest Kissi, Theophilus Adjei-Kumi, Edward Badu and Emmanuel Bannor Boateng

Tender price remains an imperative parameter for clients in deciding whether to invest in a construction project, and it serves as a basis for tender price index (TPI…

Abstract

Purpose

Tender price remains an imperative parameter for clients in deciding whether to invest in a construction project, and it serves as a basis for tender price index (TPI) manipulations. This paper aims to examine the factors affecting tender price in the construction industry.

Design/methodology/approach

Based on the literature review, nine independent constructs and one dependent construct relating to tender pricing were identified. A structured questionnaire survey was conducted among quantity surveyors in Ghana. Partial least squares structural equation modelling (PLS-SEM) examined the influences of various constructs on tender price development (TPD) and the relationships among TPD and TPI.

Findings

Results showed that cultural attributes, client attributes, contractor attributes; contract procedures and procurement methods; consultant and design team; external factors and market conditions; project attributes; sustainable and technological attributes; and TPI have a positive influence on tender price, whereas fraudulent attributes exert a negative influence.

Practical implications

The findings offer construction professionals broader understanding of factors that affect tender pricing. The results may be used in professional decision-making in the pricing of construction projects, as they offer clearer causal relations between how each construct will influence pricing.

Originality/value

This study adds to the body of construction pricing knowledge by establishing the relationships and degree of influences of various factors on tender price. These findings provide a valuable reference for practitioners.

Details

Journal of Financial Management of Property and Construction, vol. 22 no. 3
Type: Research Article
ISSN: 1366-4387

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Book part
Publication date: 12 January 2021

Roger Friedland and Diane-Laure Arjaliès

This paper explores the role of institutional objects in the constitution of institutional logics. Institutional objects depend for their objectivity on the goods produced…

Abstract

This paper explores the role of institutional objects in the constitution of institutional logics. Institutional objects depend for their objectivity on the goods produced through those objects, such as economic models, passports, or sacred texts. The authors theorize institutional logics as grammars of valuation that institutionalize goods through institutional objects. The authors identify four value moments through which goods are objectified: institution, the instituting of a good, a belief and an imagination of its objective goodness; production, how the good is produced, what practices are productive of the good; evaluation, how good is the good, the practices and objects through which worth in terms of that good is determined, and territorialization, the domain of reference of the good, to what objects and practices a good can and does refer in its instantiations. The authors assess the adequacy of our model through an institutional object based on the good of “market value” – i.e., an options pricing model. The authors discuss the implications of these findings for institutional logical theory and the sociology of valuation.

Details

On Practice and Institution: New Empirical Directions
Type: Book
ISBN: 978-1-80043-416-5

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