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1 – 10 of 370The purpose of this paper is to provide a theoretically rigorous and practically relevant summary of research findings that enables managers to drive sustainable profits…
Abstract
Purpose
The purpose of this paper is to provide a theoretically rigorous and practically relevant summary of research findings that enables managers to drive sustainable profits improvements via pricing. It showcases multiple case studies that demonstrate how companies can achieve higher-than-average profitability by implementing intelligent pricing strategies and tactics.
Design/methodology/approach
Over the past 20 years, this writer has conducted dozens of academic surveys with managers exploring the antecedents, moderators and consequences of pricing practices for existing and new products. The writer has analyzed all pricing research published in leading academic journals over the past decades. Finally, as equity partner of Hinterhuber & Partners, a pricing consultancy (www.hinterhuber.com), this writer – through collaborations with companies and workshops conducted with practicing managers – has collected data and insights on best practices in managing pricing as a strategic activity.
Findings
Pricing is the most powerful driver of superior profits, yet managers view pricing as relevant only in the context of innovation. This narrow view prevents companies from realizing their full potential. Best practice examples of pricing as well as rigorous academic research suggest that pricing based on solid scientific principles helps average companies to achieve above-average results. This paper presents a review of recent research and summarizes the fundamental principles that managers must master so that pricing becomes an enabler of lasting superior performance.
Research limitations/implications
Academic research in pricing surpasses managerial practice. Managers often rely on outdated concepts when it comes to pricing strategy and tactics.
Practical implications
The paper presents a framework that allows managers to implement pricing strategies that improve performance.
Social implications
Effective pricing strategies benefit companies, customers and other stakeholders.
Originality/value
The paper provides a comprehensive overview of the latest research on pricing and thus documents that pricing based on solid, scientific principles is an enable of lasting, above-average profitability.
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Vincent M. Thielemann, Michael C. Ottenbacher and Robert James Harrington
The purpose of this paper is to identify the antecedents of perceived customer value, such as the perceived quality and perceived sacrifices, and the effects on customer…
Abstract
Purpose
The purpose of this paper is to identify the antecedents of perceived customer value, such as the perceived quality and perceived sacrifices, and the effects on customer satisfaction and customer loyalty (CL) in the restaurant industry.
Design/methodology/approach
Based on an extensive literature review, a research model and questionnaire were designed. To assess the hypothesised relationships, data were collected in a field survey. Partial least squares regression (a variance-based regression analysis of SEM) was selected to analyse the relationships within the research model.
Findings
The findings of this study indicate that the perceived monetary sacrifice (PMS) and perceived service quality were found to be antecedents of perceived value (PV), whereas PMS was the major precursor of PV. Further, PV was found to have a substantial influence on customer satisfaction and CL.
Originality/value
The study provides a better understanding of the price–value–satisfaction–loyalty relationships in the restaurant context in a more holistic sense and recommendations to move this research stream forward.
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Kati Loijas, Aki Jääskeläinen and Elina Karttunen
This study aims to provide new understanding on operational and dynamic capabilities supportive to the implementation of performance-based public procurement by focusing on dyadic…
Abstract
Purpose
This study aims to provide new understanding on operational and dynamic capabilities supportive to the implementation of performance-based public procurement by focusing on dyadic capabilities of a supplier and a buyer.
Design/methodology/approach
The study is based on the qualitative analysis of 20 interviews with informants representing Finnish public organizations and their private sector suppliers. The analysis is aligned with a theoretical framework connecting the phases of procurement and the capability types studied.
Findings
The findings of the study present the role of operational and dynamic capabilities of a buyer and a supplier in the implementation of performance-based procurement at public procurement phases. Preprocurement phase is found to greatly benefit from all three dynamic capabilities, while operational capabilities suffice in the contracting phase.
Social implications
Increased understanding on capabilities needed in performance-based procurement can increase the chances of success in reaching better value for money of public services and developing supplier markets.
Originality/value
The study contributes to the literature on performance-based public procurement and value-based selling by taking a dyadic approach to the operational and dynamic capabilities needed in business with an emphasis on performance. As the focus in public procurement shifts increasingly from resources to performance, involving a joint effort between buyer and supplier, the study provides insights into role of dyadic capabilities and explains how dynamic and operational capabilities together support the phases of performance-based procurement implementation in the public sector.
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Michael Adesi, Degraft Owusu-Manu, Frank Boateng, Michael Nii Addy and Ernest Kissi
The purpose of this study is to investigate the challenges of pricing quantity surveying (QS) professional services to enhance the understanding of practitioners in developing…
Abstract
Purpose
The purpose of this study is to investigate the challenges of pricing quantity surveying (QS) professional services to enhance the understanding of practitioners in developing strategies for the determination of fees for their services.
Design/methodology/approach
The paper adopts the quantitative approach by administering 150 survey questionnaires QS professionals out of which 79 questionnaires were retrieved for analysis using the mean, standard deviation, standard error and the Chi-Square test.
Findings
The study identified the challenges that continue to hamper the successful pricing of QS services as the inability to respond to changing contractual arrangements; lack of appropriate response to emerging services; slow response to changes in information and communication technology.
Research limitations/implications
This paper focused on QS professionals. Hence, a future study to encompass other professionals in the built environment will be novel.
Practical implications
The findings of this paper have the potential to motivate QS firms to develop solutions that address the challenges identified to improve the efficiency of their service delivery to clients. The paper also has the practical importance of opening up new frontiers of research that focus on pricing of professional services in the built environment in general.
Originality/value
The paper contributes to the awareness and understanding of QS professionals about the challenges that continue to hamper effective pricing of their services.
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Paolo Gaiardelli and Lucrezia Songini
The purpose of this paper is to analyse the fit between the strategy of service centres and their business model (BM) and to identify the BM components' characteristics and links…
Abstract
Purpose
The purpose of this paper is to analyse the fit between the strategy of service centres and their business model (BM) and to identify the BM components' characteristics and links that allow it to stand out in terms of service delivery and business performance.
Design/methodology/approach
This study applies an inductive qualitative multiple case study approach through the empirical analysis of top-performing Italian service centres operating in the Medium–Heavy Commercial Vehicle sector.
Findings
Research findings underline that the BM components of top performers are consistent amongst each other and with the adopted strategy and make a positive impact on the firm's performance. In particular, top performers are characterised by a solid financial structure based on equity, formalised and flexible organisational structures and processes, clarity in strategic direction and long-term orientation, grounded capabilities, competences and skills, trustful relationships with main service partners and a comprehensive set of managerial mechanisms.
Research limitations/implications
This paper presents some limitations, typical of qualitative research based on case studies. Future works may include other dimensions of performance for identifying top performers, and extend the empirical analysis to different sectors and national contexts.
Originality/value
This paper supports the relevance of contingency theory – particularly the strategy-structure-performance paradigm – in the analysis of the role of a BM in successful servitization strategies of service centres. It highlights that the BMs of the top-performing companies are characterised by some common elements. From a practical perspective, the authors provide insights that can be useful for designing successful service-based BMs for service networks.
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Juri Matinheikki, Katie Kenny, Katri Kauppi, Erik van Raaij and Alistair Brandon-Jones
Despite the unparalleled importance of value within healthcare, value-based models remain underutilised in the procurement of medical devices. Research is needed to understand…
Abstract
Purpose
Despite the unparalleled importance of value within healthcare, value-based models remain underutilised in the procurement of medical devices. Research is needed to understand what factors incentivise standard, low-priced device purchasing as opposed to value-adding devices with potentially higher overall health outcomes. Framed in agency theory, we examine the conditions under which different actors involved in purchasing decisions select premium-priced, value-adding medical devices over low-priced, standard medical devices.
Design/methodology/approach
We conducted 2 × 2 × 2 between-subjects scenario-based vignette experiments on three UK-based online samples of managers (n = 599), medical professionals (n = 279) and purchasing managers (n = 449) with subjects randomly assigned to three treatments: (1) cost-saving incentives, (2) risk-sharing contracts and (3) stronger (versus weaker) clinical evidence.
Findings
Our analysis demonstrates the harmful effects of intra-organisational cost-saving incentives on value-based purchasing (VBP) adoption; the positive impact of inter-organisational risk-sharing contracts, especially when medical professionals are involved in decision-making; and the challenge of leveraging clinical evidence to support value claims.
Research limitations/implications
Our results demonstrate the need to align incentives in a context with multiple intra- and inter-organisational agency relationships at play, as well as the difficulty of reducing information asymmetry when information is not easily interpretable to all decision-makers. Overall, the intra-organisational agency factors strongly influenced the choices for the inter-organisational agency relationship.
Originality/value
We contribute to VBP in healthcare by examining the role of intra- and inter-organisational agency relationships and incentives concerning VBP (non-) adoption. We also examine how the impact of such mechanisms differs between medical and purchasing (management) professionals.
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Stephan Anthonisz and Chad Perry
The purpose of this paper is to develop an effective process to market high-rise luxury condominiums in a middle-income country in Asia like Sri Lanka, based on empirical evidence.
Abstract
Purpose
The purpose of this paper is to develop an effective process to market high-rise luxury condominiums in a middle-income country in Asia like Sri Lanka, based on empirical evidence.
Design/methodology/approach
The case research methodology used to address the four research issues used multiple sources of data. In stage 1, qualitative data were collected in interviews with managers and salespersons of six condominium developments that ranged from successful to failure. In stage 2, quantitative data were collected in a survey of the buyers of the six cases.
Findings
The authors contributions to knowledge include the first evidence-based findings about what influences the success and failure of high-rise luxury condominium developments in a country like Sri Lanka. In addition, a comprehensive marketing model of an effective marketing process is developed for forward-thinking professionals in the field to use to successfully market their luxury high-rise condominiums projects in the future.
Practical implications
Detailed steps for successful marketing are outlined, from the Board of Management down to salespersons.
Originality/value
This is the first academic research paper to examine the effective marketing of high-rise luxury condominiums in a middle-income country like Sri Lanka.
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In servitization research, there has been a call to move further toward the development of business models based on a service approach. This article aims to answer this call by…
Abstract
Purpose
In servitization research, there has been a call to move further toward the development of business models based on a service approach. This article aims to answer this call by adopting service logic (SL) and developing strategies and organizational resources and processes to create a service-centric business model called servification, defined as the process of identifying and developing strategies and organizational resources and processes to create a business model based on SL.
Design/methodology/approach
This article is conceptual and extends servitization in the direction of service-centric business model innovation by drawing on and extending SL.
Findings
The article defines service as a higher-order concept according to SL and develops the concept of a helping strategy as the foundation for a service-based business model. Further, it develops a typology of organizational resources and processes that must be developed for the emergence of such a business model.
Research limitations/implications
Since this article is the first to conceptually develop servification, more both theoretical and empirical research is naturally required. The development of servification takes servitization in the direction of service-based business model innovation and also contributes to the research on SL.
Practical implications
Servification enables the development of service-centric strategies and organizational resources and processes and service-based business models.
Originality/value
This article is the first to adopt SL in studies of business model innovation.
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Anna Salonen, Marcus Zimmer and Joona Keränen
The purpose of this study is to explain how the application of fuzzy-set qualitative comparative analysis (fsQCA) and experiments can advance theory development in the field of…
Abstract
Purpose
The purpose of this study is to explain how the application of fuzzy-set qualitative comparative analysis (fsQCA) and experiments can advance theory development in the field of servitization by generating better causal explanations.
Design/methodology/approach
FsQCA and experiments are established research methods that are suited for developing causal explanations but are rarely utilized by servitization scholars. To support their application, we explain how fsQCA and experiments represent distinct ways of developing causal explanations, provide guidelines for their practical application and highlight potential application areas for a future research agenda in the servitization domain.
Findings
FsQCA enables specification of cause–effects relationships that result in equifinal paths to an intended outcome. Experiments have the highest explanatory power and enable the drawing of direct causal conclusions through reliance on an interventionist logic. Together, these methods provide complementary ways of developing and testing theory when the research objective is to understand the causal pathways that lead to observed outcomes.
Practical implications
Applications of fsQCA help to explain to managers why there are numerous causal routes to attaining an intended outcome from servitization. Experiments support managerial decision-making by providing definitive “yes/no” answers to key managerial questions that address clearly specified cause–effect relationships.
Originality/value
The main contribution of this study is to help advance theory development in servitization by encouraging greater methodological plurality in a field that relies primarily on the qualitative case study methodology.
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The study aims to explore the benefits of service productisation to provide further understanding on the productisation concept as support for business processes and service…
Abstract
Purpose
The study aims to explore the benefits of service productisation to provide further understanding on the productisation concept as support for business processes and service management. The concept has been deficiently discussed regardless of the potential significance to the whole formed by service products, business processes, information technology (IT), people and data.
Design/methodology/approach
In the study, the exploratory empirical evidence is presented from 16 cases, 4 of which are from companies that are globally well-known.
Findings
The key findings of the paper include an overview of the benefits of service productisation and the relation to service offering, service processes and related resources. The concept links to the management of the whole formed by service products, business processes, IT, people and data. The noted benefits seem to be applicable to productisation of different service types, whilst some service characteristics may affect the specific emphasis.
Research limitations/implications
The limitations involve using secondary data, which, however, makes the cases less biased regarding the aims. Primary data are required to gain further insights into the phenomena and the identified benefits.
Practical implications
The findings provide support for issues that are commonly discussed by practitioners on a concept that is less studied by the scientific literature. Practitioners can work towards organisational efficiency and effectiveness by understanding the benefits of productisation. Understanding service productisation can support the effective management of business processes and work towards prosperity in the service business.
Originality/value
The study is the first one to analyse the benefits of service productisation by exploring the issue through multiple cases and attempting to identify aspects for further attention by the academic community.
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