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Purpose -In the face of increased pricing pressure, managerial attention for value-informed pricing (in which a price is based on the customer's value perception) is on the rise. Although value-informed pricing in its organizational context received a great deal of attention, the body of literature is fragmented and insights are often not cumulative. It is the aim of this article to review and integrate the empirical literature on pricing practices in order to pave the road for future research. Design/methodology/approach -Empirical studies on pricing practices are collected and reviewed. Building on the resource-based view of the firm, the findings from these studies are summarized in an integrative framework that includes testable research propositions. Findings -Value-informed pricing is the result of the deployment of informational resources such as market research, relationships and internal knowledge on customers. Firms should not only develop these information sources, but also secure the process by which they are deployed. The latter is among others influenced by the competitive context and organizational information processing that may evolve into a routine. Originality/value -The article integrates the insights from a stream of research that thus far has been highly fragmented. It generates insights that may help firms to establish a value-informed pricing process and it may help to develop a more mature body of research on value-informed pricing.

Although the positive effect of a market orientation on new product success is widely accepted and the market orientation literature has increased its understanding of how a market orientation leads to performance, the extant literature has overlooked the role of value-informed pricing in the relationship. Value-informed pricing is a pricing practice in which the decision makers base the price of the new product on the customers' perceptions of the benefits that the product offers and how these benefits are traded by customers against the price (that has yet to be determined). Considering that pricing mistakes may hit hard on the profitability of product innovations, it is important to firms to have a good understanding of its role. This study develops a framework in which value-informed pricing is integrated in the relationship between market orientation and new product performance. A distinction is made between customer and competitor orientations, and relative product advantage is also included in the conceptual model. The model is tested on data obtained from managers based on a cross sectional sample of 144 firms. The respondents were involved in a decision-making process of the pricing of a new product. The model is tested using structural equations modeling. The results show that value-informed pricing has a strong effect on new product performance. It also reveals that each component of a market orientation fulfills a specific role in a market-oriented organization. Value-informed pricing is found to have important mediating effects in the market orientation-new product performance relationship. Results show that firms with a strong customer orientation engage in valueinformed pricing and develop superior benefits to customers in an advantageous product. In turn, both value-informed pricing and relative product advantage positively affect new product market performance. However, no significant effect of competitor orientation on value-informed pricing is found. Combined with the finding that competitor orientation negatively affects relative product advantage, this suggests that competitor orientation may hurt new product performance when this orientation is not balanced with a strong customer orientation. The results also portray that value-informed pricing leads to higher product advantage. Interestingly, this relation is contingent on the degree of interfunctional coordination within the firm. This suggests that the relationship between market orientation and new product performance is strongest if firms integrate value-informed pricing in the new product development process. In this sense, a market-oriented firm mirrors the customer value perception that makes a tradeoff between benefits and price.