Value co-creation and new service performance: mediated by value-informed pricing

Abstract

Purpose The purpose of this paper is to examine the influence of the dialogue, access, risk assessment and transparency model of value co-creation processes (dialogue, access, risk and transparency) on new service market performance (NSMP) with the mediating role of value-informed pricing in the context of business-to-business (B2B). Design/methodology/approach The data were collected through a cross-sectional survey of 230 managers of the telecommunications industry in Malaysia and analyzed through structural equation modeling using SmartPLS v.3.3.3 software. Findings This study found that dialogue and transparency are predictors of NSMP. The findings indicate that value-informed pricing plays a mediating role in the relationship between dialogue and transparency with NSMP. Practical implications Disclosing pricing related information, providing up to date information to the customers, making clear to the customers about new offerings would certainly influence value-informed pricing. Thus, managers can enhance customer engagement in the interaction processes to better understand customer expectations of new services and how the new services should be priced. Originality/value The link between value co-creation and value-informed pricing has been only conceptualized in literature. This study has opened a new stream of research, examining the relationship of interactional-based value co-creation process with value-informed pricing and NSMP in the context of B2B relationship from providers’ perspective.

Exploring opportunism, conflict, noneconomic satisfaction and economic satisfaction in a B2B context – A buyer and seller perspective

“…The results of the study validated the direct relationship between noneconomic satisfaction and economic satisfaction http://www.sajbm.org Open Access in both purchaser and sales B2B relationships (refer to Table 5 and Table 7). Therefore, it would seem that when the relationship between a purchaser and a sales business is positive and transparent and stimulate feelings of contentment between the partners, economic benefits such as profitability is strengthened due to continuous business engagement in the long-term (Kushwaha et al, 2021;Taghizadeh et al, 2022). Furthermore, the empirical findings reported on the antecedents and postcedents research model provide an improved contextual understanding of the relationship between noneconomic satisfaction and economic satisfaction in Taiwanese purchase and sales business relationships.…”

Adoption of value-based pricing for prescription drugs

“…Outcomes definition is the process to analyze intermediate or final results of a drug or treatment in terms of efficacy, safety and clinical validity [50], [51]. The success of a value-based agreement is significantly dependent on defining the appropriate and specific values of the prescription drug [25], [36], [46], [52], [53]. On the other hand, the biggest challenge faced today is the disagreement between payers and drug manufacturers about which outcomes should be included in the agreement for a fair assessment.…”

“…Observability helps to make the results of VBP visible to key decision makers for improving adoption. However, the entire process of value measurement and sharing using patient data makes it difficult to have full transparency, thus making observability difficult to achieve [36], [49], [53]. QALY has been used to some extent to demonstrate the results of VBP contracts [4], [54].…”

“…Trialability for VBP allows payers and drug companies to gain enough confidence with initial tests before full adoption for all drugs and indications. Some of the important factors for successful trialability includes firm's level of maturity in terms of knowledge and technology [35], [47], [53] and nominating an internal champion to guide all relevant teams [44], [47]. Since incorporating RWE can be a complex process for an initial test, studies have suggested using available clinical studies data for initial contracts [39], [45], [57].…”

“…Since incorporating RWE can be a complex process for an initial test, studies have suggested using available clinical studies data for initial contracts [39], [45], [57]. Key decision makers and management within an organization play an important role in trialability and their attitude and behavior influences the decision to proceed with an initial test for VBP [35], [47], [53].…”