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Pricing Strategy and Revenue Models Multiple Case Study for Service IT Sector in Finland
In one of the staple articles on the issue of value-based pricing, Hinterhuber explains that although the effect of pricing on profitability is quite clear, managers often see pricing as a zero sum game, where the company’s gain comes only at the customer’s expense. (2004) Managers often do not pursue value pricing because they perceive customers as quite price sensitive. However, in their research, Avila and Dodds found that purchasing managers ranked price as the least important criter...
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In one of the staple articles on the issue of value-based pricing, Hinterhuber explains that although the effect of pricing on profitability is quite clear, managers often see pricing as a zero sum game, where the company’s gain comes only at the customer’s expense. (2004) Managers often do not pursue value pricing because they perceive customers as quite price sensitive. However, in their research, Avila and Dodds found that purchasing managers ranked price as the least important criter...