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Organizational Barriers and the Implementation of Customer Value Map Analysis: A Case Study of a Global Manufacturing Firm in the Polymer Technology Industry

Hallberg, Niklas Lars LU and Andersson, Linn LU (2012) In Innovation in pricing: Contemporary theories and best practices p.1-416
Abstract
Prior studies have found that firms often find it difficult to implement innovative pricing strategies, such as value-based pricing, due to the organizational barriers they face in the implementation process. This case study of a manufacturing firm’s implementation of value-based pricing through the use of customer value map analysis (CVMA) examines the effect of these organizational barriers. Key challenges for the studied firm involved overcoming the sales representatives’ focus on turnover rather than profit margin, as well as inconsistent prices across sales regions. These challenges were addressed by an increased sales force control and training the sales representatives in explaining the customer value. The results of our study... (More)
Prior studies have found that firms often find it difficult to implement innovative pricing strategies, such as value-based pricing, due to the organizational barriers they face in the implementation process. This case study of a manufacturing firm’s implementation of value-based pricing through the use of customer value map analysis (CVMA) examines the effect of these organizational barriers. Key challenges for the studied firm involved overcoming the sales representatives’ focus on turnover rather than profit margin, as well as inconsistent prices across sales regions. These challenges were addressed by an increased sales force control and training the sales representatives in explaining the customer value. The results of our study indicate that innovation in sales force management, or more specifically, sales force price delegation, is a key success factor for the implementation of value-based pricing through CVMA. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Chapter in Book/Report/Conference proceeding
publication status
published
subject
keywords
Customer value map analysis, value-based pricing, organizational barriers, case study, polymer technology industry.
in
Innovation in pricing: Contemporary theories and best practices
editor
Hinterhuber, Andreas and Liozu, Stephan
pages
1 - 416
publisher
Routledge
ISBN
978-0-203-08568-4
978-0-415-52164-2
978-0-415-52161-1
language
English
LU publication?
yes
id
92abd1d0-e56a-4b57-99a3-38904c341204 (old id 3123023)
date added to LUP
2012-11-19 13:18:04
date last changed
2016-04-16 07:14:58
@misc{92abd1d0-e56a-4b57-99a3-38904c341204,
  abstract     = {Prior studies have found that firms often find it difficult to implement innovative pricing strategies, such as value-based pricing, due to the organizational barriers they face in the implementation process. This case study of a manufacturing firm’s implementation of value-based pricing through the use of customer value map analysis (CVMA) examines the effect of these organizational barriers. Key challenges for the studied firm involved overcoming the sales representatives’ focus on turnover rather than profit margin, as well as inconsistent prices across sales regions. These challenges were addressed by an increased sales force control and training the sales representatives in explaining the customer value. The results of our study indicate that innovation in sales force management, or more specifically, sales force price delegation, is a key success factor for the implementation of value-based pricing through CVMA.},
  author       = {Hallberg, Niklas Lars and Andersson, Linn},
  editor       = {Hinterhuber, Andreas and Liozu, Stephan},
  isbn         = {978-0-203-08568-4},
  keyword      = {Customer value map analysis,value-based pricing,organizational barriers,case study,polymer technology industry.},
  language     = {eng},
  pages        = {1--416},
  publisher    = {ARRAY(0x9575de0)},
  series       = {Innovation in pricing: Contemporary theories and best practices},
  title        = {Organizational Barriers and the Implementation of Customer Value Map Analysis: A Case Study of a Global Manufacturing Firm in the Polymer Technology Industry},
  year         = {2012},
}