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1 – 10 of over 1000
Article
Publication date: 6 February 2007

Roger J. Calantone and C. Anthony Di Benedetto

The purpose of this paper is to examine the interaction of pricing strategies with other aspects of launch, in particular, timing, logistics/inventory strategy, and coordination…

8097

Abstract

Purpose

The purpose of this paper is to examine the interaction of pricing strategies with other aspects of launch, in particular, timing, logistics/inventory strategy, and coordination with support organizations, and the effect on profit and competitive performance.

Design/methodology/approach

The paper presents an empirical study of 215 recent new product launches, focusing on pricing and other strategic and tactical launch decisions and the resulting profitability and competitive performance. Clusters of new product launches are identified and the profitability and competitiveness of each cluster are discussed.

Findings

The paper finds that some clusters are related to greater success than others. The most profitable and competitively successful cluster contained launches supported by solid market research and marked by good timing decisions. By contrast, the least profitable/successful cluster were higher price launches unsupported by adequate research.

Research limitations/implications

The study is limited by the fact that the sampling frame is made up of members of a professional association of product development and management, and may therefore be more representative of “best practice” in new product development (NPD) than of NPD in general. The authors believe the use of the key informant method is justified in this study, however this method has been criticized in the past.

Originality/value

The pricing decision for a new product is sometimes oversimplified as a “high‐low” or “skimming versus penetration” choice. The study finds that the actual effect of pricing on ultimate success is much more complex, and that one must consider not only price level, but also the timing of the launch, the logistics and inventory strategy, the extent of market research, testing, and planning, and so forth.

Details

Journal of Business & Industrial Marketing, vol. 22 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 2 February 2015

Paul T.M. Ingenbleek

Sustainable products often suffer a competitive disadvantage compared with mainstream products because they must cover ecological and social costs that their competitors leave to…

4664

Abstract

Purpose

Sustainable products often suffer a competitive disadvantage compared with mainstream products because they must cover ecological and social costs that their competitors leave to future generations. The purpose of this paper is to identify price strategies for sustainable products that minimize this efficiency disadvantage.

Design/methodology/approach

The strategies and their determinants from the pricing environment are derived from an inductive sequential case study of certified food products, such as organic and fair trade products. Data are collected through desk research and interviews.

Findings

The results reveal six different strategies that build on three basic mechanisms: cost-based pricing in combination with price fairness, increasing willingness to pay through perceptions of quality and/or price, and price stability in which costs are compensated for by scale and/or learning effects.

Research limitations/implications

The framework can help companies that offer sustainable products strengthen their market positions and it can help policy makers that partly rely on markets to achieve sustainability objectives.

Originality/value

The existing pricing literature on sustainability predominantly takes a consumer approach. This study breaks new ground by extending this work with a strategic marketing approach offering a choice set of strategies for managers.

Details

British Food Journal, vol. 117 no. 2
Type: Research Article
ISSN: 0007-070X

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 service‐pricing strategies, namely skimming pricing (i.e. a high…

6863

Abstract

Purpose

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.

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: 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

2438

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: 27 January 2012

Eric H. Shaw

The purpose of this paper is to organize the semantics jungle of marketing strategy approaches, terms and concepts into a logically coherent framework using the history of…

30265

Abstract

Purpose

The purpose of this paper is to organize the semantics jungle of marketing strategy approaches, terms and concepts into a logically coherent framework using the history of marketing thought to inform current marketing research and practice.

Design/methodology/approach

The paper takes the form of an intensive literature review tracing the three streams of marketing strategy terms and concepts from their roots in the literatures of early marketing management, managerial economics and corporate management to the present.

Findings

Along with marketing ideas, strategy concepts from managerial economics and from corporate management were absorbed directly into the corpus of strategic marketing thought. These three streams of research have converged into the current state of marketing strategy – an eclectic mixture of both complementary and conflicting strategic approaches, terms and concepts. By systematically following the evolutionary development of major contributions to strategic marketing thought and by redefining terms and refining concepts the various approaches to strategy can be integrated into a comprehensive conceptual framework for organizing and choosing among individual marketing strategies.

Originality/value

The framework offers conceptual and practical value. It provides a researcher with a consistent set of terms and concepts to build upon. The framework also provides a strategic toolkit for the marketing manager, based upon organizational and environmental conditions, to choose from among the feasible alternatives the most effective marketing strategy to achieve management's goal(s).

Article
Publication date: 1 March 1992

O. Douglas Moses

Organizational change inevitably involves uncertainty and hencesome risk taking. Tests the relationship between organizational slackand risk taking in organization decision…

1288

Abstract

Organizational change inevitably involves uncertainty and hence some risk taking. Tests the relationship between organizational slack and risk taking in organization decision making, and thus provides some evidence on the role or organizational variables in risk‐taking behaviour. Product pricing strategies are identified and characterized with respect to risk. Organizational slack is measured using various financial variables. Results indicate that firms which have increases in organizational slack prior to the introduction of new products are more likely to adopt a higher risk product pricing strategy. Also discusses implications regarding the measurement of slack using financial variables.

Details

Journal of Organizational Change Management, vol. 5 no. 3
Type: Research Article
ISSN: 0953-4814

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: 27 February 2009

John Kehagias, Emmanuel Skourtis and Aikaterini Vassilikopoulou

Using the product classification proposed by the Commodity School as it was originally expressed and later developed, this research aims to focus on defining pricing strategies…

2265

Abstract

Purpose

Using the product classification proposed by the Commodity School as it was originally expressed and later developed, this research aims to focus on defining pricing strategies for specific corporate objectives, that is, profit increase, market share increase, and prevention of new competitors from entering the market.

Design/methodology/approach

In order to investigate the relationship between four consumer product categories and alternative pricing strategies in light of various corporate objectives, a set of research questions and propositions was formed and tested on the basis of data reflecting opinions expressed by marketing executives through a mailed survey in Greece.

Findings

For convenience and preference products, the low‐price strategy is used more often, irrespective of corporate objectives, whereas the high‐price strategy is used more often, irrespective of corporate objectives, for specialty products. For shopping products, the low‐price strategy is used more often when the main corporate objectives are increased market share and the prevention of new competitors from entering the market, but when the main corporate objective is increased profits, the high‐price strategy tends to prevail.

Research limitations/implications

The current research could be further expanded to cover other related topics such as the pricing policies and specific pricing methods that are used in the four product categories in combination with the pricing strategies they relate to and serve.

Practical implications

For marketers, the development of the proposed framework can serve as a basis for pricing decisions, provided, of course, that they use research‐based information about the extent to which their products have the attributes of a certain product category.

Originality/value

As the literature review revealed, no conceptual links have been made between the three important parameters examined, that is, product categories, corporate objectives, and pricing strategies, that can form a pricing framework for consumer products. This research serves as a starting point for developing such a three‐point framework.

Details

Journal of Product & Brand Management, vol. 18 no. 1
Type: Research Article
ISSN: 1061-0421

Keywords

Content available
Case study
Publication date: 8 June 2023

Avil Saldanha and Rekha Aranha

A secondary research method was used to collect data for this case. The authors have made use of newspaper articles and published articles written by journalists and experts…

Abstract

Research methodology

A secondary research method was used to collect data for this case. The authors have made use of newspaper articles and published articles written by journalists and experts, which are available in the public domain.

Case overview/synopsis

This case discusses the hurdles faced by Netflix in India. Netflix experienced rapid growth ever since its entry into the Indian over-the-top (OTT) sector. The aggressive pricing strategies by OTT competitors put Netflix in a defensive position in India. Netflix introduced the low-priced mobile-only plan to attract price-sensitive Indian consumers. However, this was not sufficient. Netflix was forced to reduce the price of all its plans in December 2021. The dilemma faced by Reed Hastings (Founder and Co-CEO, Netflix) was whether the revised price was low enough to hold on to existing subscribers and attract new subscribers in India. Netflix was caught between the rock and the hard place in its pursuit to achieve its target of achieving 100 million subscribers from India versus continuing its skimming-pricing strategy. This case highlights the compound challenges of low household income in India and high-income inequality resulting in a lower available market for multinational service providers such as Netflix. The pricing plans and features of OTT competitors in India have also been discussed in sufficient depth to facilitate analysis and classroom discussion by the target audience.

Complexity academic level

Undergraduate students studying marketing management and basic marketing courses in business management and commerce streams can use this case. This case can also be used for marketing specialization courses at the undergraduate level.

Details

The CASE Journal, vol. 20 no. 1
Type: Case Study
ISSN: 1544-9106

Keywords

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 and the…

24224

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.

1 – 10 of over 1000