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Value creation character and value assessment responsibility

Johansson, Magnus LU ; Olsson, Göran and Andersson, Linn LU (2016) In Journal of Revenue and Pricing Management p.1-20
Abstract
Value-based pricing is by many companies as well as in academia perceived as the preferred pricing model. The pricing literature includes a long-standing debate on pricing authority and centralized pricing authority can be associated with value-based pricing strategies. A critical success factor for value-based pricing is customer value assessment, and many companies have experienced challenges in implementing value assessment to support its value-based pricing. This paper outlines how centralized versus delegated value assessment responsibility depends on the organization’s value creation character and the variations in value in use for different customers within individual market segments. Based on the integration of literature on... (More)
Value-based pricing is by many companies as well as in academia perceived as the preferred pricing model. The pricing literature includes a long-standing debate on pricing authority and centralized pricing authority can be associated with value-based pricing strategies. A critical success factor for value-based pricing is customer value assessment, and many companies have experienced challenges in implementing value assessment to support its value-based pricing. This paper outlines how centralized versus delegated value assessment responsibility depends on the organization’s value creation character and the variations in value in use for different customers within individual market segments. Based on the integration of literature on pricing and value configurations we propose a framework which we then exemplify by four illustrative cases for which data were gathered by semi-structured interviews. By considering the implications of value creation models on value assessment following our framework we contribute to the understanding of how value assessment responsibilities should be assigned for firms working with value-based pricing. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
value assessment pricing B2B segment
in
Journal of Revenue and Pricing Management
pages
20 pages
publisher
Macmillan
ISSN
1476-6930
DOI
10.1057/s41272-016-0052-2
language
English
LU publication?
yes
id
cb7cd510-3670-4c69-8598-139e101818a8
alternative location
http://link.springer.com/article/10.1057/s41272-016-0052-2?wt_mc=Internal.Event.1.SEM.ArticleAuthorOnlineFirst
date added to LUP
2016-08-22 21:45:08
date last changed
2016-08-23 14:39:57
@misc{cb7cd510-3670-4c69-8598-139e101818a8,
  abstract     = {Value-based pricing is by many companies as well as in academia perceived as the preferred pricing model. The pricing literature includes a long-standing debate on pricing authority and centralized pricing authority can be associated with value-based pricing strategies. A critical success factor for value-based pricing is customer value assessment, and many companies have experienced challenges in implementing value assessment to support its value-based pricing. This paper outlines how centralized versus delegated value assessment responsibility depends on the organization’s value creation character and the variations in value in use for different customers within individual market segments. Based on the integration of literature on pricing and value configurations we propose a framework which we then exemplify by four illustrative cases for which data were gathered by semi-structured interviews. By considering the implications of value creation models on value assessment following our framework we contribute to the understanding of how value assessment responsibilities should be assigned for firms working with value-based pricing.},
  author       = {Johansson, Magnus and Olsson, Göran and Andersson, Linn},
  issn         = {1476-6930},
  keyword      = {value assessment pricing B2B segment},
  language     = {eng},
  month        = {08},
  pages        = {1--20},
  publisher    = {ARRAY(0xada6a50)},
  series       = {Journal of Revenue and Pricing Management},
  title        = {Value creation character and value assessment responsibility},
  url          = {http://dx.doi.org/10.1057/s41272-016-0052-2},
  year         = {2016},
}