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The conceptualization of value-based pricing in industrial firms

  • Research Article
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Journal of Revenue and Pricing Management Aims and scope

Abstract

The current literature is largely silent on how executives interpret the concept of value-based pricing. Although only a minority of companies adopts value-based pricing approaches, little is known about antecedents of alternative pricing approaches. We suggest this may be because of the fact that few professionals possess an understanding of value-based pricing, which is both academically rigorous as well as practically relevant. Our interviews with 44 executives in 15 US industrial firms show that those practicing value-based pricing interpret customer value in ways fully consistent with the current academic literature. Those practicing cost- or competition-based pricing, however, show a poor understanding of value-based pricing, which may explain why their companies practice cost- or competition-based approaches.

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Author information

Authors and Affiliations

  1. Weatherhead School of Management, Case Western Reserve University, Cleveland, Ohio, USA

    Stephan M Liozu, Richard Boland & Sheri Perelli

  2. Hinterhuber & Partners and Bocconi University, Milano, Italy

    Andreas Hinterhuber

Authors
  1. Stephan M Liozu
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  2. Andreas Hinterhuber
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  3. Richard Boland
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  4. Sheri Perelli
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Corresponding author

Correspondence to Andreas Hinterhuber.

Appendices

Appendix A

Table A1

Table A1 Themes and sub-themes definitions
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Appendix B

Table B1

Table B1 Identified value-based pricing methodologies in business publications
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Appendix C

Table C1

Table C1 Detailed sample information
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Appendix D

Table D1

Table D1 Detailed sample description
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Appendix E

Table E1

Table E1 Value-based pricing conceptualizations
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Liozu, S., Hinterhuber, A., Boland, R. et al. The conceptualization of value-based pricing in industrial firms. J Revenue Pricing Manag 11, 12–34 (2012). https://doi.org/10.1057/rpm.2011.34

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  • DOI: https://doi.org/10.1057/rpm.2011.34

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