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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 LU and Andersson, Linn LU (2017) p.54-71
Abstract

Value-based pricing is often recommended as superior pricing strategy (e.g. Dolan & Simon, 1996; Hinterhuber, 2008; Liozu et al., 2012; Marn et al., 2004; Monroe, 2003). However, while many studies provide detailed analytical recommendations on how to identify customer value and competitor prices (Forbis & Mehta, 1981; Kortge & Okonkwo, 1993; Marn et al., 2004; Monroe, 2003; Shapiro & Jackson, 1978; Smith & Nagle, 2005), the internal coordination and control mechanisms that determine firms’ ability to implement value-based pricing are often more vaguely described. 1 For example, coordination and cooperation between different business departments (Dolan, 1995; Dutta et al., 2002; Lancioni, 2005b; Lancioni et al.,... (More)

Value-based pricing is often recommended as superior pricing strategy (e.g. Dolan & Simon, 1996; Hinterhuber, 2008; Liozu et al., 2012; Marn et al., 2004; Monroe, 2003). However, while many studies provide detailed analytical recommendations on how to identify customer value and competitor prices (Forbis & Mehta, 1981; Kortge & Okonkwo, 1993; Marn et al., 2004; Monroe, 2003; Shapiro & Jackson, 1978; Smith & Nagle, 2005), the internal coordination and control mechanisms that determine firms’ ability to implement value-based pricing are often more vaguely described. 1 For example, coordination and cooperation between different business departments (Dolan, 1995; Dutta et al., 2002; Lancioni, 2005b; Lancioni et al., 2005; Monroe, 2003; Nagle & Holden, 2002; Vogel et al., 2002) is identified as a key success factor for a more effective pricing but seldom elaborated. This is troubling since prior studies have found that firms often find it difficult to replace less effective pricing strategies, such as cost-based pricing and competition-based pricing, with value-based pricing (Hinterhuber, 2008). One reason for this may be that firms lack clearly specified authority levels for granting list price discounts to customers and systems for monitoring the sales force (Hallberg, 2017a; Johansson et al., 2012; Stephenson et al., 1979).

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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
host publication
Innovation in Pricing
pages
18 pages
publisher
Routledge/ Taylor and Francis Group
external identifiers
  • scopus:85050285420
ISBN
9781138738256
9781351732369
DOI
10.4324/9781315184845
language
English
LU publication?
yes
id
90e28588-dafb-4bc2-98d2-48845c6e5659
date added to LUP
2018-08-28 12:05:46
date last changed
2019-02-20 11:24:52
@inbook{90e28588-dafb-4bc2-98d2-48845c6e5659,
  abstract     = {<p>Value-based pricing is often recommended as superior pricing strategy (e.g. Dolan &amp; Simon, 1996; Hinterhuber, 2008; Liozu et al., 2012; Marn et al., 2004; Monroe, 2003). However, while many studies provide detailed analytical recommendations on how to identify customer value and competitor prices (Forbis &amp; Mehta, 1981; Kortge &amp; Okonkwo, 1993; Marn et al., 2004; Monroe, 2003; Shapiro &amp; Jackson, 1978; Smith &amp; Nagle, 2005), the internal coordination and control mechanisms that determine firms’ ability to implement value-based pricing are often more vaguely described. 1 For example, coordination and cooperation between different business departments (Dolan, 1995; Dutta et al., 2002; Lancioni, 2005b; Lancioni et al., 2005; Monroe, 2003; Nagle &amp; Holden, 2002; Vogel et al., 2002) is identified as a key success factor for a more effective pricing but seldom elaborated. This is troubling since prior studies have found that firms often find it difficult to replace less effective pricing strategies, such as cost-based pricing and competition-based pricing, with value-based pricing (Hinterhuber, 2008). One reason for this may be that firms lack clearly specified authority levels for granting list price discounts to customers and systems for monitoring the sales force (Hallberg, 2017a; Johansson et al., 2012; Stephenson et al., 1979).</p>},
  author       = {Hallberg, Niklas and Andersson, Linn},
  isbn         = {9781138738256},
  language     = {eng},
  month        = {01},
  pages        = {54--71},
  publisher    = {Routledge/ Taylor and Francis Group},
  title        = {Organizational barriers and the implementation of customer value map analysis : A case study of a global manufacturing firm in the polymer technology industry},
  url          = {http://dx.doi.org/10.4324/9781315184845},
  year         = {2017},
}