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Article
Publication date: 6 October 2023

Thowayeb Hassan and Mahmoud Ibraheam Saleh

The study aims to investigate how attribution theory in the context of pricing strategies can help tourism destinations recover from the negative impacts of the COVID-19 pandemic.

Abstract

Purpose

The study aims to investigate how attribution theory in the context of pricing strategies can help tourism destinations recover from the negative impacts of the COVID-19 pandemic.

Design/methodology/approach

The study adopted a qualitative research design using semi-structured interviews to address the lack of research in this area. Interview participants included tourists and tourism customers. The interview responses were then analyzed using “Nvivo” qualitative data analysis software to identify critical themes regarding applying attribution theory to pricing strategies.

Findings

The findings revealed that tourists prefer bundled and hedonic pricing strategies that integrate the service providers' pricing strategies' locus of control, stability and controllability. Tourists do not favor dual pricing strategies unless the reasons for price controllability or stability are justified. Tourists also prefer the controllable pay-what-you-want pricing strategy. Although tourists accept dynamic pricing, certain conditions related to price locus, stability and controllability must be met.

Practical implications

The research shows tourists prefer pricing strategies that give them control and flexibility, like bundled packages and pay-what-you-want models. Service providers should integrate pricing strategies that transparent costs and justify price fluctuations. While dynamic pricing is accepted if necessitated by external factors, tourists are wary of unnecessary price changes. Providers can build trust and satisfaction by explaining pricing rationale and offering controllable options like bundles.

Originality/value

The study contributes to the theory by applying attribution theory to the context of pricing strategies in tourism. It also provides innovative recommendations for tourism managers on how to use pricing strategies after the COVID-19 pandemic. The findings offer new insights that extend beyond previous research.

Details

Journal of Hospitality and Tourism Insights, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2514-9792

Keywords

Article
Publication date: 31 January 2011

Kostis Indounas and George Avlonitis

The purpose of this paper is to investigate the conditions that led to the adoption of the three new industrial servicepricing strategies, namely skimming pricing (i.e. a high…

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Abstract

Purpose

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

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Practical implications

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.

Originality/value

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.

Details

Journal of Business & Industrial Marketing, vol. 26 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 2 March 2010

Ruiliang Yan and John Wang

The purpose of this paper is to provide a framework to help the manufacturer and the giant retailer to obtain optimal service level, pricing strategy, and market structure in…

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Abstract

Purpose

The purpose of this paper is to provide a framework to help the manufacturer and the giant retailer to obtain optimal service level, pricing strategy, and market structure in order to maximize their respective profits.

Design/methodology/approach

A profit‐maximization model is developed to determine the optimal service level, pricing strategy, and market structure for supply chain players.

Findings

Using a profit‐maximization model, it is demonstrated that optimal service level and pricing strategy exist under different market structures in a manufacturer‐giant retailer supply chain. In order to maximize their respective profits, the manufacturer and the giant retailer should cooperatively employ a coordinative market structure as an optimal market structure and a bargaining model can be utilized to implement profit sharing for the manufacturer and giant retailer to optimize their profits. Furthermore, it is also shown that the value of coordinative structure always increases with the customers' sensitivity of service, the number of customers preferring to purchase from giant retailer, and the decreasing price sensitivity.

Research limitations/implications

The study assumes that all supply chain players have perfect market information. However, market information to the supply chain players could be incomplete and asymmetric. It is recommended that future research explores optimal service level and pricing strategy under incomplete and asymmetric information setting.

Practical implications

The paper provides a very useful model framework to study optimum service level, pricing strategy, and market structure for business managers who are working in the manufacturer‐giant retailer supply chain.

Originality/value

The paper fills a conceptual and practical gap for a structured analysis of the current state of knowledge about service level, pricing strategy, and market structures in a manufacturer‐giant retailer supply chain. The paper provides practical, solid advice and business examples that demonstrate the application of the optimal strategies for supply chain management.

Details

Journal of Product & Brand Management, vol. 19 no. 1
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 4 May 2020

Shan Chen, Fuli Zhou, Jiafu Su, Longxiao Li, Biyu Yang and Yandong He

The paper investigates firms' optimal pricing policies and green strategies in a dynamic green supply chain with consideration of different retail service strategies. The purpose…

Abstract

Purpose

The paper investigates firms' optimal pricing policies and green strategies in a dynamic green supply chain with consideration of different retail service strategies. The purpose of the paper is to address the following research questions: (1) What are the optimal pricing policies and green strategies of the dynamic decentralized supply chain with the competitive or supportive retail service? (2) How does the dynamic consumer's perception of green product affect these equilibrium solutions?

Design/methodology/approach

The paper establishes the dynamic game models and then derives a firm's instantaneous and steady-state feedback equilibrium solutions in three scenarios as follows: (1) the integrated supply chain; (2) the decentralized supply chain with competitive retail service and (3) the decentralized supply chain with supportive retail service. Finally, we conduct numerical analyses to compare the firm's instantaneous and steady-state equilibrium solutions and profit in the three scenarios.

Findings

The theoretical and numerical analysis results suggest that the supportive retail service is less inefficient than the competitive retail service in the decentralized supply chain and that the types of retail service have no influence on the green strategy. Moreover, a firm's myopia leads to lowering the greenness degree, retail service level and severe price competition, resulting in economic losses. Consumers’ initial perception of greenness degree determines whether the retailer should adopt the skimming pricing strategy or penetration pricing strategy. Furthermore, only when consumers’ perception of greenness degree is higher than a threshold, will the manufacturer produce green product with positive greenness degree.

Originality/value

This is one of few studies on the effect of different types of retail service on horizontal competition in green supply chain. The extension of the static study by adopting differential game approaches provides researchers with a deeper understanding of the application of retail service in green supply chain.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 33 no. 1
Type: Research Article
ISSN: 1355-5855

Keywords

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, and

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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

Keywords

Article
Publication date: 16 April 2020

Kostis Indounas

The purpose of this paper is to investigate the characteristics that lead to the adoption of the three new business-to-business (B2B) product pricing strategies, namely, skimming…

2498

Abstract

Purpose

The purpose of this paper is to investigate the characteristics that lead to the adoption of the three new business-to-business (B2B) product 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.

Design/methodology/approach

To achieve the study’s research objectives, data were collected through a mail survey from 116 B2B firms, operating in four different sectors.

Findings

The adoption of skimming pricing and penetration pricing is triggered by company-related factors that are associated with the company’s corporate and marketing strategy and the product characteristics, while the adoption of pricing similar to competitive prices is influenced by market-related factors that are associated with customers’ and competitors’ characteristics.

Practical implications

The above findings indicate that the managers responsible for setting prices for new B2B products should follow a “situation-specific approach” and be guided by the unique characteristics of their internal and external environment.

Originality/value

Its contribution lies on the fact that, building upon quests within the existing literature, it constitutes one of the first attempts to examine empirically the aforementioned issue.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 11
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 5 August 2014

Kostis Indounas

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…

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.

Details

Journal of Services Marketing, vol. 28 no. 5
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 14 June 2019

Zonghuo Li, Wensheng Yang, Xiaohong Liu and Hassan Taimoor

This paper aims to investigate the impact of retailer innovation investment and its spillover’s effect on competitive dual-channel supply chain pricing and optimization strategy

Abstract

Purpose

This paper aims to investigate the impact of retailer innovation investment and its spillover’s effect on competitive dual-channel supply chain pricing and optimization strategy, and explore the coordination mechanism considering decision maker’s bargaining ability.

Design/methodology/approach

The Cournot and Stackelberg game methodology are made use of for the duopoly decentralized and joint decision-making model. The bargaining theory with different negotiation ability was used to analysis the coordination mechanism. Then this paper validates the model by simulation techniques.

Findings

The results enlightened some interesting facts, the increase in innovation demand coefficient spur rise in channel pricing, innovation investment level, supply chain profit and consumer welfare. The rise in innovation spillover coefficient leads to increase in online channel pricing, supply chain profit and consumer welfare. Due to the innovation spillover effect, retailer has to maintain channel competitiveness either through low price or high innovation investment strategies. In addition, online channel pricing, supply chain profit and consumer welfare in joint decision-making scenario is greater than that of decentralized decision-making scenario, while the difference in retailer channel pricing depends on parameters value. The increase in retailer’s joint negotiation factor leads to decrease in channel pricing and innovation investment level. Furthermore, there existence of an optimal innovative investment cost sharing proportion threshold indicates the achievement of dual-channel supply chain coordination. A refinement equilibrium can be achieved through Robinstein bargaining game. A larger interest discount factor leads to decrease in profit.

Originality/value

The research provides a theoretical reference for dual-channel supply chain pricing and coordination strategy under channel competition environment. The research can develop innovative investment strategies for retailers and implement response strategies for manufacturers.

Details

Kybernetes, vol. 49 no. 6
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 3 December 2018

Zhaojie Xue, Shuqing Cheng, Mingzhu Yu and Liang Zou

This paper aims to study the pricing problems on the two-sided market for cases of monopoly and duopoly competition, specifically investigating the impact of platform service

Abstract

Purpose

This paper aims to study the pricing problems on the two-sided market for cases of monopoly and duopoly competition, specifically investigating the impact of platform service quality on the market. Theoretical analysis and computational studies are conducted to investigate the impact of different parameters on the system outcomes.

Design/methodology/approach

Mathematical formulations are proposed for cases of monopoly and duopoly competition. For monopolistic market, the optimal pricing and service quality strategies are obtained using mathematical programming method. For duopolistic market, the equilibrium outcomes are derived by game theory. Sensitivity analysis and numerical studies are also adopted to investigate the impact of different parameters.

Findings

For monopolistic market, the platform will provide a low service quality when the service cost parameter is large. However, when the cost parameter is small, the platform provides a higher service quality and higher registration prices. Furthermore, the sum of the optimal prices is proportional to the service quality and inversely proportional to the user price sensitivity. For duopolistic market, the competitive equilibrium prices exist under a certain condition. The determinants of equilibrium prices are the gap between the service qualities of two platforms and the cross-group externalities.

Originality/value

For monopolistic market, this paper specifies the role of platform service quality in determining the platform’s pricing strategy. For duopolistic market, this paper presents a market sharing mechanism between two platforms and explores the equilibrium pricing strategies for platforms with different service quality level.

Details

Kybernetes, vol. 48 no. 8
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 1 June 1992

Richard Lancioni and John L. Gattorna

Describes the major strategies used in setting prices ininternational markets. Emphasizes the issue of developing pricingstrategies early in the development phase of new product…

Abstract

Describes the major strategies used in setting prices in international markets. Emphasizes the issue of developing pricing strategies early in the development phase of new product development and discusses bundling strategies with the emphasis on adding value to mature products/services through bundling. Discusses long‐term issues in international pricing including the development of pricing parity, the concentration of buying power in international buying groups, and the increase in retaliatory measures by nations against predatory pricing by competitiors.

Details

International Journal of Physical Distribution & Logistics Management, vol. 22 no. 6
Type: Research Article
ISSN: 0960-0035

Keywords

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