The conceptualization of value-based pricing in industrial firms

Value in Pharmaceutical Pricing

“…This price may differ across market segments. Customer value is defined either by the customers' maximum "willingness-to-pay" or as "the cost of the customer's best alternative plus the value of any company-exclusive differentiating features" (Liozu et al, 2011). Though value-based pricing can be shown to be the most profitable strategy for a firm (subject to a series of assumptions), it is not (yet) widely used in practice.…”

General Overview ofValue-Based Pricing

“…Another factor that can affect the success of VBP programs is the understanding, on the part of providers, what is important, and where that importance can be shown [19]. Apart from measuring the outcomes and gaining incentives, there is also a need to engage the key stakeholders in the implementation of the system design.…”

A Model for Value-Based Selling: Enabling Corporations to Transition from Products and Services Towards Further Complex Business Models

“…Research by Liozu et al (2012) on value-based pricing shows that the corporations investigated practicing cost-or competition-based pricing approaches show poor understanding of value-based pricing. They further state that few industrial firms have adopted value-based pricing, and that cost-and competition-based pricing dominates the pricing strategies in practice.…”

“…They further state that few industrial firms have adopted value-based pricing, and that cost-and competition-based pricing dominates the pricing strategies in practice. Notably, according to Liozu et al (2012), there seems to be a wide array of various definitions of value-based pricing, which may confuse the understanding of the concept -and thus how to implement it. Johansson et al (2012) assert that corporations struggle with implementing value-based pricing strategies and that their research indicates that more than 80 per cent of corporations practice pricing primarily based on cost.…”