Value‐informed pricing in its organizational context: literature review, conceptual framework, and directions for future research

Ingenbleek, P.T.M.

doi:10.1108/10610420710834904

Cited by 76 publications

(100 citation statements)

References 101 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…In fact, most academic approaches to pricing are either descriptive studies of pricing practices or normative frameworks offering prescriptions on rational price-setting behaviors. What is lacking is a cumulative understanding of the price setting practices followed by firms and the factors that contribute to successful practices (Ingenbleek 2007).…”

Section: Understanding Managers' Impacts On the Price Setting Processmentioning

confidence: 99%

“…The lack of availability of ready populations for sampling restricts study of pricing decisions and behaviors to specific questions and also, more often than not, insights are often drawn from case studies and small sample qualitative research. What is lacking is a cumulative understanding of pricing practices from a wider variety of studies (Ingenbleek 2007). Finally, it is possible that the conceptualization of organizations as rational entities may be pervading most of pricing research and may also be restricting researchers to include only objective information sources rather than pricing executives' subjective evaluations in their models.…”

Section: Understanding Managers' Impacts On the Price Setting Processmentioning

confidence: 99%

“…Also, simple pricing methods, such as cost-plus pricing, are relied upon more than other more sophisticated approaches to pricing (Ingenbleek 2007). In the context of behavioral decision theory, the application of the cost-plus heuristic is a managerial mechanism of coping with the complexity involved in pricing (Liozu 2012).…”

Section: Heuristicsmentioning

confidence: 99%

See 2 more Smart Citations

Behavioral issues in price setting in business-to-business marketing: A framework for analysis

Iyer

Xiao

Sharma

et al. 2015

Industrial Marketing Management

View full text Add to dashboard Cite

Highlights Managerial price setting processes are examined through insights obtained from behavioral decision making. Behavioral models of pricing provide realistic understanding of managerial price setting in business-to-business contexts. Issue understanding, cognitive biases and heuristics are offered as major managerial factors that impact price setting. An agenda for future research is offered along with managerial suggestions for price setting.3 Behavioral Issues in Price Setting in Business-to-Business Marketing: A Framework for Analysis AbstractBusiness-to-business pricing research has often focused on developing rational and normative frameworks and models for pricing issues, strategies and tactics. However, there has been less attention given to behavioral models that help us understand the realities of pricing and how managers actually set prices. Specifically, there has been less attention given to the various individual and group influences on the price setting process. We apply insights from a steadily increasing body of literature on behavioral decision making to identify some relevant behavioral issues that may affect managerial price setting processes in business-to-business contexts. We conclude with some implications for theory building and practice and an agenda for future research. Approaching the field of business-to-business pricing from the perspective of behavioral decision making, which contends that managerial cognitive biases are key sources for deviations 5 from optimal decisions, we attempt to understand the impacts of managerial factors on the price setting process. Our primary objective is to build a case for the study of managerial cognitions that could affect the use and application of normative frameworks of price setting. With this objective in mind, we attempt to make three distinct contributions to the current sparse research in the area of managerial influences on business-to-business pricing. First, we extend insights from behavioral research from various disciplines, including behavioral economics, management and behavioral finance, to understand how behavioral issues may contribute to the price setting process. While most existing research on business-to-business marketing focuses on the customer or the purchasing manager (e.g., Anderson et al. 2000), we place our attention on the manager in the selling or marketing firm. Second, we offer a preliminary framework that contends that managerial issue identification, cognitive biases and heuristics intervene in the Keywords

show abstract

Section: Understanding Managers' Impacts On the Price Setting Processmentioning

confidence: 99%

Section: Understanding Managers' Impacts On the Price Setting Processmentioning

confidence: 99%

See 1 more Smart Citation

Behavioral issues in price setting in business-to-business marketing: A framework for analysis

Iyer

Xiao

Sharma

et al. 2015

Industrial Marketing Management

View full text Add to dashboard Cite

show abstract

“…The field of pricing research consists of "pockets" of high-quality and rigorous research (Diamantopoulos and Mathews, 1995;Ingenbleek, 2007;Ng, 2008). For example, Ng describes pricing as consisting of many individual disciplines that suffer from only "feeling one part of the elephant" (Ng, 2008, p. 7).…”

Section: Pricing Researchmentioning

confidence: 99%

“…For example, Piercy et al (2010) argue that pricing should move from being a simple tactical tool into being a strategic tool that can change customer behaviour as well as spawn new market opportunities. To do so is, however, not an easy task since pricing research is dispersed across different disciplines (Diamantopoulos, 1991;Ingenbleek, 2007;Ng, 2008) and pricing is in practice often performed with a piecemeal and fragmented approach (Hinterhuber, 2004;Marn et al, 2004;Piercy et al, 2010). Because of this, there is a need for research that explores and makes sense of the repertoire of possible price models that organisations may deploy for their products and services (Ng, 2010).…”

Section: Introductionmentioning

confidence: 99%

How to differentiate by price: Proposal for a five-dimensional model

Iveroth¹,

Westelius²,

Petri³

et al. 2013

European Management Journal

View full text Add to dashboard Cite

The purpose of this article is to analyse the repertoire of possible price models that organisations may deploy for their products and services. This is attained by developing the SBIFT model that suggests that organisations can differentiate by price along five dimensions. Previous research on pricing has been dispersed across different academic disciplines. This article offers a more integrated perspective, derived from earlier theory as well as discussions in a collaborative research project with the international telecom company Ericsson. The model can be used as a tool for price modelling in a descriptive and prescriptive sense. Altogether, this article uncovers implicit features of price models, and by doing so it illustrates how an organisation can differentiate and re-invent their offering based on price.

show abstract