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Pricing practices and value creation logics

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Journal of Revenue and Pricing Management Aims and scope

Abstract

The pricing literature is mainly concerned with pricing in association with standardized products and services. This article addresses the topic of pricing from the perspective of value creation logics, focusing on highly customized deliveries rather than standardized products. The article first outlines a framework of pricing settings, depending on value creation logics. It then exemes parts of this framework through an empirical illustration of pricing practices within an industrial firm supplying highly customized deliveries. In particular, the article identifies the appropriateness of applying economic versus customer value pricing practices depending on the value creation setting.

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Notes

  1. There is also a time aspect of customer uniqueness that we do not consider in this article.

  2. Here we assume that the firm optimizes its use of the chain logic and thus transfers customized activities that can be solved in accordance with a chain logic owing to repeatability towards a single customer or generalization across populations. That is, customized, shop logic-generated deliveries have truly unique features that create local barriers of entry.

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Authors and Affiliations

  1. Lund University, Lund, Sweden

    Magnus Johansson & Linn Andersson

Authors
  1. Magnus Johansson
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  2. Linn Andersson
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Correspondence to Magnus Johansson.

Additional information

1holds a PhD from the School of Economics and Management, Lund University and has worked with strategic analysis and planning within the IT, telecom, automotive and general industry. His research is focused on value creation and pricing strategies in business-to-business firms.

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Johansson, M., Andersson, L. Pricing practices and value creation logics. J Revenue Pricing Manag 11, 64–75 (2012). https://doi.org/10.1057/rpm.2011.43

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  • DOI: https://doi.org/10.1057/rpm.2011.43

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