Abstract
We address the following paradox: most scholars consider value based pricing as superior to cost and competition based approaches in industrial markets -yet, few firms use it. Semi-structured interviews with 44 managers of small to medium size U.S. industrial firms revealed key characteristics that are common to the firms who successfully implement value-based pricing: the ability to face deep transformational change, the role of champions as transformational leaders, the creation and diffusion of organizational mindfulness, the building of organizational confidence to fuel the transformation, and the design of center-led and specialized teams of experts supporting the firm’s pricing process. Our data demonstrates that value-based pricing is not simply adopted but internalized through a long and purposeful process supported by a mindful, experiential and transformative learning environment.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Anderson, J., N. Kumar and J. A. Narus. 2007. Value Merchants: Demonstrating and Documenting Superior Value in Business Markets. Harvard Business School Press.
Bandura, A. 1986. Social Foundations of Thought and Action. Prentice Hall.
Bandura, A. 1997. Self-efficacy: The Exercise of Control. Worth Publishers.
Bandura, A. 2000. “Exercise of Human Agency Through Collective Efficacy.” Current Directions in Psychological Science 9 (3): 75–78.
Bass, B. 1985. Leadership and Performance Beyond Expectations. New York: Free Press.
Bohn, J. 2001. The Design and Validation of an Instrument to Assess Organizational Efficacy, Unpublished Dissertation, University of Wisconsin - Milwaukee.
Brownlie, D. and J. Spender. 1995. “Managerial Judgement in Strategic Marketing.” Management Decision 33 (6): 39–50.
Corbin, J. and A. Strauss. 2008. Basics of Qualitative Research. Sage Publications, Inc.
Cressman, Jr., G. 2010. “Selling Value-Based Pricing Strategies: Making Pricing Strategy Work.” The Journal of Professional Pricing (First Quarter 2010): 16–19.
Daft, R. and K. Weick. 1984. “Toward a Model of Organizations As Interpretation Systems.” The Academy of Management Review 9 (2): 284–95.
Dolan, R. and H. Simon. 1996. Power Pricing: How Managing Price Transforms the Bottom Line. Free Press.
Duncan, R. 1972. “Characteristics of Organizational Environments and Perceived Environmental Uncertainty.” Administrative Science Quarterly 17 (3): 313–27.
Fiol, C., & O’Connor, E. 2003. “Waking up! Mindfulness in the face of bandwagons.” The Academy of Management Review 28 (1): 54–70.
Forbis, J. and N. Mehta. 1981, “Value-Based Strategies for Industrial Products.” Business Horizons 24 (3): 32–42.
Glaser, B. and A. Strauss. 1977. The Discovery of Grounded Theory: Strategies for Qualitative Research. Aldine.
Green, S. and T. Taber. 1978. “Stucturing Experiential Learning Through Experimentation.” The Academy of Management Review 3(4):889–95.
Gully, S., Incalcaterra, K., Joshi, A., & Beauien, J. M. 2002.“A Meta-Analysis of Team-Efficacy, Potency, and Performance: Interdependence and Level of Analysis as Moderators of Observed Relationships.” Journal of Applied Psychology 87 (5): 819–832.
Hacker, S., & Roberts, T. 2003. Transformational Leadership: Creating Organizations of Meaning, ASQ Quality Press.
Hatfield, E., Cacioppo, J., & Rapson, R. L. 1994. Emotional Contagion. Cambridge Univiversity Press.
Hinterhuber, A. 2004. “Towards Value-Based Pricing: An Integrative Framework for Decision Making.” Industrial Marketing Management 33 (8): 765–78.
Hinterhuber, A. 2008. “Value Delivery and Value-Based Pricing in Industrial Markets.” Advances in Business Marketing and Purchasing 14: 381–448.
Hoover, J., & Valenti, A. 2005. Unleashing Leadership: Aligning What People Do Best With What Organizations Need Most. Career Press Inc.
Howell, J., Shea, C., & Higgins, C. A., 2005. “Champions of Product Innovations: Defining, Developing, and Validating a Measure of Champion Behavior.” Journal of Business Venturing 20 (5): 641–661.
Ingenbleek, P. 2007. “Value-Informed Pricing in Its Organizational Context: Literature Review, Conceptual Framework, and Directions for Future Research.” Journal of Product & Brand Management 16 (7): 441–58.
Kanter, R. 2006. Confidence: How winning Streaks and Losing Streaks Begin and End. Three Rivers Press.
Kolb, D. 1984. Experiential Learning. Englewood Cliffs, NJ: Prentice-Hall.
Langer, E. 1997. The Power of Mindful Learning. Reading, MA: Addison-Wesley.
Levinthal, D., & Rerup, C. 2006. “Crossing an Apparent Chasm: Bridging Mindful and Less-Mindful Perspectives on Organizational Learning.” Organization Science 17 (4): 502.
Malhotra, N. K. 1996. “The Impact of the Academy of Marketing Science on Marketing Scholarship: An Analysis of the Research Published in JAMS.” Journal of the Academy of Marketing Science 24 (4): 291.
Maxwell, J. 2005. Qualitative Research Design: An Interactive Approach, (Vol. 42). Thousand Oaks, CA: Sage Publications, Inc.
Mezirow, J. 1997. “Transformative Learning: Theory to Practice.” New Directions for Adult and Continuing Education 1997(74): 5–12.
Mezirow, J. 2000. Learning to Think Like an Adult. Learning as Transformation: Critical Perspectives on a Theory in Progress: 3–33.
Mezirow, J. and M. Welton. 1995. In Defense of the Lifeworld. State University of New York Press New York.
Nadler, D., & Nadler, M. 1997. Champions of Change: How CEOs and Their Companies are Mastering the Skills of Radical Change. San Francisco, CA: Jossey-Bass.
Nadler, D., & Tushman, M. 1990. “Beyond the Charismatic Leader and Organizational Change.” California Management Review: 77–97.
Nagle, T. and R. Holden. 2002. The Strategy and Tactics of Pricing: A Guide to Profitable Decision Making. New Jersey: Prentice Hall.
Noble, P. and T. Gruca. 1999a. “Response to the Comments on Industrial Pricing: Theory and Managerial Practice.” Marketing Science 18 (3): 458.
Noble, P. and T. Gruca. 1999b. “Industrial Pricing: Theory and Managerial Practice.” Marketing Science 18 (3): 435–454.
Pfeffer, J. andR. Sutton. 2006. “Evidence-Based Management.” Harvard Business Review 84 (1): 62.
Shamir, B., House, R. J., & Arthur, M. B. 1993. “The Motivational Effects of Charismatic Leadership: A Self-Concept Based Theory.” Organization Science 4 (4): 577–594.
Slater, S. 1997. “Developing a Customer Value-Based Theory of the Firm.” Journal of the Academy of Marketing Science 25 (2): 162–67.
Stein, E. 1995. “Organization Memory: Review of Concepts and Recommendations for Management.” International Journal of Information Management 15 (1): 17–32.
Szulanski, G. 1996. “Exploring Internal Stickiness: Impediments to the Transfer of Best Practice Within the Firm.” Strategic Management Journal 17: 27–43.
Tasa, K., Taggar, S., & Seijts, G. H. 2007. “The Development of Collective Efficacy in Teams: A Multilevel and Longitudinal Perspective.“ Journal of Applied Psychology 92 (1): 17–27.
Taylor, E. 2007. “An Update of Transformative Learning Theory: A Critical Review of the Empirical Research (1999– 2005).” International Journal of Lifelong Education 26 (2): 173–91.
Thomke, S. 2003. Experimentation Matters. Boston: Harvard Business School Press.
Thompson, M. 2009. The Organizational Champion: How to Develop Passionate Change Agents at Every Level. McGraw Hill Professional.
Wang, Y., & Huang, T. 2009. “The Relationship of Transformational Leadership with Group Cohesiveness and Emotional Intelligence.” Social Behavior and Personality: An International Journal 37 (3): 379–392.
Weick, K. and K. Sutcliffe. 2007. Managing the Unexpected: Resilient Performance in an Age of Uncertainty. Jossey-Bass.
Weick, K. E., Sutcliffe, K., & Obstfeld, D. 1999. “Organizing for High Reliability: Processes of Collective Mindfulness.” Research in Organizational Behavior 21: 81–123.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2015 Academy of Marketing Science
About this paper
Cite this paper
Liozu, S., Boland, D., Hinterbuber, A., Perelli, S. (2015). Mindful Pricing: Transforming Organizations Through Value Based Pricing. In: Robinson, L. (eds) Marketing Dynamism & Sustainability: Things Change, Things Stay the Same…. Developments in Marketing Science: Proceedings of the Academy of Marketing Science. Springer, Cham. https://doi.org/10.1007/978-3-319-10912-1_137
Download citation
DOI: https://doi.org/10.1007/978-3-319-10912-1_137
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-10911-4
Online ISBN: 978-3-319-10912-1
eBook Packages: Business and EconomicsBusiness and Management (R0)