<p>Despite its advantages, value-based pricing is rarely used in practice. This paper examines how pricing capabilities and contingency factors influence the success of value-based pricing. Based on a cross-sectional business-to-business (B2B) survey the study tests a model that incorporates value quantification capability and sales force negotiation capability, customer price sensitivity, and price-related market dynamism. The research indicates that value-based pricing enhances market effectiveness, value quantification increases the effect of value-based pricing on profitability, and customer price sensitivity negatively moderates these main effects. This study emphasizes the importance of investing in value quantification tools and assessing customer price sensitivity in pricing.</p>

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Unlocking value-based pricing: the moderating roles of pricing capabilities and contingency factors in B2B markets: an empirical approach

  • Oliver Roll,
  • Jan Luca Geerties

摘要

Despite its advantages, value-based pricing is rarely used in practice. This paper examines how pricing capabilities and contingency factors influence the success of value-based pricing. Based on a cross-sectional business-to-business (B2B) survey the study tests a model that incorporates value quantification capability and sales force negotiation capability, customer price sensitivity, and price-related market dynamism. The research indicates that value-based pricing enhances market effectiveness, value quantification increases the effect of value-based pricing on profitability, and customer price sensitivity negatively moderates these main effects. This study emphasizes the importance of investing in value quantification tools and assessing customer price sensitivity in pricing.