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While the gap between economic theory and companies’ practice, regarding to the pricing setting, has been extensively explored and explained, the new gap between the marketing normative view and companies’ practice needs further clarification. In this way, the paper aims to investigate whether marketing researchers’ claim that the use of cost-based price approach prevails over the use of value-based price approach is pertinent.

The paper is guided by the following research question: “Does price-setting based on cost plus margin go against the value-based price approach?” The answer to this question is grounded in reflections on results of previous research studies and in a case study conducted in an industrial company. Because of the qualitative focus of the present study, hypotheses are not established, but rather the following proposition: certain companies use the mechanics of cost plus margin in the sale price-setting process, but it does not necessarily mean that these companies set prices based on cost.

The arguments, propositions and the case study findings provide the logical sequence and the support required to conclude that price-setting based on cost plus margin does not always conflict with the value-based price approach. As a result, it may be claimed that the general proposition established is theoretically valid, i.e. using a price formula that contains the elements cost and margin does not necessarily mean that the company sets prices based on cost.

The key contribution of this paper is demonstrating that in certain business environments, such as, B2B, using the price formation mechanics based on cost plus margin is the way found by companies to enable the approach adopted. The approach may be cost-based or value-based price. This is the first study that explicitly reveals how B2B companies may set prices based on value while simultaneously preserving the simplicity of cost plus margin formulas. Researchers have significant misconceptions about these formulas: in previous studies, they classified all price-making companies as those adopting the cost-based price approach simply because they used formulas containing the element cost.

The purpose of this paper is to investigate the conditions that led to the adoption of the three new industrial service‐pricing strategies, namely skimming pricing (i.e. a high initial price), penetration pricing (i.e. a low initial price), and pricing similar to competitive prices.

In order to achieve the study's research objectives, data were collected through a mail survey from 129 transportation and 48 information technology companies. Moreover, 20 in‐depth personal interviews were conducted in the initial phase of the research.

Analyzing data from two industrial sectors, the study concludes that skimming pricing and penetration pricing relate to the company's corporate and marketing strategy and the service characteristics, while market conditions influence the adoption of pricing similar to competitive prices.

Given the limited number of the sectors investigated in the current study, the research results may not be easily applicable to other industrial service contexts.

The findings reflect the complexity and multidimensionality of new industrial service pricing. Thus, a single mode for pricing decisions does not seem to exist. Given the uncertainty facing industrial firms when making price decisions, especially with reference to new services, a balanced approach paying attention to both inward‐ and outward‐looking determinants can ensure the effective price determination.

The originality of the paper lies in the fact that it constitutes the first attempt to examine empirically the aforementioned conditions in an industrial service context.

The purpose of this research paper is to investigate the pricing policies that service companies adopt in order to set their prices along with the service, organizational and environmental characteristics that influence these policies. Moreover, the extent to which these policies and characteristics are varied across different service industries is also examined.

In order to achieve the research objectives, data were collected from 170 companies operating in six different service sectors in Greece through personal interviews. Moreover, a qualitative research through 38 in‐depth interviews was also conducted.

The study found that the pricing policies tend to be influenced by a number of different service, organizational and environmental characteristics, while different patterns of pricing behavior were clearly identified across different service industries.

The practical implications of the findings refer to the fact that there does not seem to be a “one and only” recipe for pricing decisions, which can be applied to all circumstances and service contexts. Formulating the pricing strategy seems to be a “situation specific” business activity. The significance of these findings notwithstanding, the context of the study (Greece) is the most important caveat, since it limits the ability to generalize the results to other countries.

The contribution of the paper lies in the fact that it presents the first attempt to empirically examine the potential impact of the aforementioned characteristics on the pricing policies used especially across different service contexts.

The purpose of this paper is to provide insight into the way industrial service firms price the services they render in the market, with particular emphasis on the pricing practices of pricing‐competent firms.

In order to achieve the study's research objectives, data were collected through a mail survey from 129 transportation and 48 information technology companies. Moreover, 20 in‐depth personal interviews were conducted in the initial phase of the research.

The study found that pricing‐competent firms have developed a “holistic” and multi‐faceted pricing approach, paying attention to both company‐ and market‐related pricing objectives, methods, policies, and information.

These findings underline the multidimensionality that characterizes pricing decisions, necessitating a systematic approach triggered by the thorough examination of both company‐ and market‐related characteristics. The significance of these findings notwithstanding, the narrow context of the study does limit generalization of its findings to other service sectors and national contexts.

The paper constitutes the first attempt to examine empirically the concept of pricing performance in an industrial service context.

The purpose of this paper is to explore the pricing policies that service companies adopt along with the pricing information that they gather to set their prices. Despite previous authors' suggestions regarding the need for a coherent process when setting prices, there seems to be a lack of empirically‐based theory on how pricing policies and pricing information might be interrelated.

Following 26 in‐depth exploratory interviews, additional personal interview data were collected from 170 companies operating in six different services sectors in Greece.

The paper finds that “list pricing” is the only policy that is adopted by the majority of the surveyed companies. Further, they tend to collect more than one type of information giving particular emphasis on market‐based information. The “customer‐based” information was found to be associated positively with the policy of “cash discounts”, while the “competition‐based” information with the policies of “trade discounts” and “differentiated pricing”. Moreover, the “cost‐based information” is associated positively with the “cash discounts” and “efficiency pricing” policies and negatively with the “loss leader pricing” policy.

The findings refer to the need for a “balanced” market‐oriented and “situation‐specific” approach when setting prices The significance of these findings notwithstanding, the context of the study (Greece) is the most important caveat since it limits the ability to generalize the results in other countries.

The paper represents the first attempt to examine empirically the potential relationship between pricing policies and pricing information.

The purpose of this general review paper is to provide a comparison and evaluation of the treatment of pricing by the disciplines of economics and marketing.

It is from three perspectives that the marketing and economics approaches to pricing are reviewed, namely, buyers' response to price, firm's determination of price, and industry‐ or economy‐wide role of price.

A comparative review of the relevant marketing and economics literature shows that there are important differences between the two disciplines in their treatment of pricing. Marketing demonstrates a richer and more empirically based treatment of the pricing issue from the buyer's perspective, while economics is unchallenged from the economy‐wide perspective. The differences found between the marketing and economics approaches to pricing are mostly due to their different historical origins, primary concerns and doctrinal evolution. In contrast, interdisciplinary loans especially from behavioral science have made possible considerable advances in marketing, particularly in the understanding of the buyer's perspective.

Previous reviews of the pricing literature do not attempt to provide a direct comparison and evaluation and offer no explanation for the observed differences among the economics and the marketing disciplines regarding their treatment of the pricing issue. The value and originality of the current paper lies in the fact that it represents the first attempt to provide such a comparison and evaluation.

To explore the pricing objectives that service companies pursue along with the extent to which these objectives are influenced by the stage of the services' life cycle.

Reviews the existing literature and analyzes data from 170 companies operating in six different services sectors in Greece in order to achieve the research objectives.

The literature on pricing of services reveals the complete lack of any previous work endeavoring to examine empirically this potential influence. The study concludes that the objectives are mainly customer oriented aimed at improving the companies' financial performance in the market. Furthermore, the stage of these services' life cycle along with the sector of operation seems to have an influence on the pricing objectives pursued.

The context of the study (Greece) is an obvious caveat to the research findings suggesting the need for further replication of the current study in different national contexts.

The practical implications of the findings refer to the fact that managers might have much to gain by adopting a “situation specific approach” when setting prices. Thus, different pricing objectives should be set as a service passes from one stage of its life cycle to another, while different services necessitate also a different pricing approach.

The value of the paper lies in the fact that it presents a first attempt to investigate empirically this issue.

The purpose of this research paper is to explore the pricing objectives that service companies pursue to set their prices and to examine the impact of market structure. An extensive review of the literature revealed the complete lack of any previous work aiming to empirically investigate the impact of market structure on the company's pricing behavior and pricing objectives. Thus, the value of the paper lies in the fact that it presents the first attempt to empirically examine this issue from a marketing perspective. In order to achieve research objectives, data were collected from 170 companies operating in six different services sectors in Greece through personal interviews. The findings of the study show that the companies seem to follow a hierarchy of pricing objectives where their main focus is on the maintenance of the existing customers and the attraction of new ones, in order to ensure their long‐term position in the market without, however, disregarding financial considerations.

The purpose of this research paper is to explore the pricing objectives that service companies pursue along with the pricing methods that they adopt in order to set their prices.

An extensive review of the literature revealed the complete lack of any previous work aiming to investigate the potential association between these two important elements of a company's pricing strategy. Thus, the value of the paper lies in the fact that it presents the first attempt to examine this issue empirically. In order to achieve the research objectives, data were collected from 170 companies operating in six different services sectors in Greece through personal interviews.

The findings of the study reveal that the objectives, which are pursued, are fundamentally qualitative rather than quantitative in their nature with a particular emphasis given on the companies’ customers. However, the pricing methods, which are adopted by the majority of the companies, refer to the traditional cost‐plus method and the pricing according to the market's average prices. The study also revealed that the pricing objectives are, as should be expected, associated with the pricing methods.

The practical implications of the findings refer to the fact that managers might gain a lot by placing their emphasis on an integrated pricing approach and implement pricing methods that are in line with the pricing objectives that have been initially set. However, the context of the study (Greece) is an obvious limitation to the ability to generalize these findings, suggesting the need for future research that replicates the current study in other countries.

Managers might gain a lot by placing their emphasis on an integrated pricing approach and implement pricing methods that are in line with the pricing objectives that have been initially set.