Pricing issues in industrial marketing

Lancioni, Richard A.

doi:10.1016/j.indmarman.2004.07.009

Cited by 43 publications

(22 citation statements)

References 7 publications

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“…In reality, however, pricing decisions, even though aided by decision models, are the purview of specific individuals and groups in the organization. Despite similarities in contexts and availability of decision making models, pricing decisions may suffer from unwarranted risk avoidance (Guiltinan 1976;Hunt and Forman 2006), inappropriateness of chosen objectives (Smith 1995), perceptions of lack of decision making control (Hinterhuber 2004;Lancioni 2005a), inflexibility in decisions (Monroe and Cox 2001), and lack of knowledge of sophisticated methods .…”

Section: Understanding Behavioral Issues In the Pricing Process: Towamentioning

confidence: 99%

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

Iyer

Xiao

Sharma

et al. 2015

Industrial Marketing Management

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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

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Section: Understanding Behavioral Issues In the Pricing Process: Towamentioning

confidence: 99%

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

“…Price setting techniques vary at national and international levels because the business dimensions and customer choice differs from local markets. Some other factors significantly affect pricing strategy and this includes overall investment of the organisation, market influence, competitors' initiatives of pricing, and customer behaviour of spending money (Lancioni, 2005). Price and quality are related to each other and customers want the exact return of their spending and this return is the higher quality of a product or service.…”

Section: Proposed Hypothesesmentioning

confidence: 99%

4Ps: A Strategy to Secure Customers’ Loyalty via Customer Satisfaction

Nuseir

Madanat

2015

IJMS

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This paper explores the role of Marketing mix strategy and its overall positive or negative impact on customer's satisfaction and loyalty. Product, price, place and promotion variables need to be managed by understating psychological traits of customers buying nature. The literary discussion highlights that customer expectations with regards to product quality, price, and product accessibility are managed by communication techniques using advertising agents. The discussion proceeds in analytical style using previous theory as base point to evaluate the role of marketing mix in relation with customer satisfaction turning into loyalty. Inductive data collection approach has proved a great help to extract gist of past research results. A large proportion of data has been gathered from secondary resources including journals, books and old research papers. The results show that all four aspects of marketing mix are equally important and any imbalance among them can damage overall results. Customers' buying intentions are greatly affected by his/her expectations in context of a product quality, price, and product accessibility. The relationship between customer satisfaction and loyalty depends on the elimination of perception gap, service gap, operational gap and behavioural gap that needs to be managed by giving focused attention to these matters. This paper reviews prior literature and proposes to think carefully to use marketing mix strategy to met customer expectations by eliminating any communication or perception gaps that further extend customer loyalty.

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“…As argued by Christopher and Gattorna (2005), over the years competition has moved from individual companies to supply chains, hence it is crucial to improve the overall performance of the supply chain, rather than just the internal tiers. According to Lancioni (2005b), this shift has increased the opportunities for more creative pricing strategies and the extraction of higher profit margins in supply chains. Therefore, it is evident that pricing should be considered as a process to be involved in this collaborative effort by re-thinking its role and increasing its relevancy in accordance with the supply chain management perspective.…”

Section: Introductionmentioning

confidence: 99%

Towards supply chain collaboration in B2B pricing

Formentini

Romano

2016

International Journal of Operations &Amp; Production Management

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Purpose -Research on business-to-business (B2B) pricing has been mainly focussed on the supplier's pricing process, thus adopting traditionally an internal perspective and perceiving pricing as a profit distribution parameter rather than an opportunity for collaboration with customers. Recently, the opportunity to develop win-win, collaborative relationships in the B2B pricing process by embracing a supply chain perspective has started to attract the attention of scholars across several research streams, who have highlighted the emergence of this topic using different definitions, perspectives and methodologies. The purpose of this paper is to address the need for integrating the fragmented body of knowledge on B2B pricing toward supply chain collaboration. Design/methodology/approach -This critical literature review adopts an interdisciplinary approach, focussing on industrial marketing and operations and supply chain management areas. Findings -The authors provide a critical synthesis and discussion structured in four streams clustered around two dimensions, i.e. the "extension" of the collaboration in the pricing process along the supply chain and the "direction" of collaboration.Research limitations/implications -Drawing on the literature gaps, the paper concludes by proposing an agenda for future research for a relevant topic both for academics and practitioners. Originality/value -This paper offers a novel comprehensive view of the supply chain collaboration in the B2B pricing process and provides opportunities for intensifying dialogue across different research areas.

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Pricing issues in industrial marketing

Cited by 43 publications

References 7 publications

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

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

4Ps: A Strategy to Secure Customers’ Loyalty via Customer Satisfaction

Towards supply chain collaboration in B2B pricing

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