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Value assessment and pricing capabilities—how to profit from value

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Journal of Revenue and Pricing Management Aims and scope

Abstract

Value is a key concept for researchers and practitioners in the fields of strategy, marketing, and pricing. In the strategy literature, value is closely related to competitive advantage and profit, in the marketing literature value is the cornerstone of the marketing management process, in the pricing literature value represents the customer’s willingness to pay. The aim of this article is to bridge the gap between marketing, pricing and strategy research through a compilation of five short essays that focus on value assessment and pricing capabilities. This article argues that value assessment and pricing capabilities provide the foundation for value creation and value appropriation in business-to-business markets, highlights their implications for profiting from value created and delivered, and outlines important areas for future research.

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Notes

  1. By value creation, we refer to the total value that is created in a collaborative exchange between a supplier and a customer, and by value appropriation, we refer to the net value that a supplier (or a customer) can successfully claim (see for example, Wagner et al, 2010). While the service-logic of marketing (for example, Grönroos, 2011) advocates a different conceptualization, where value creation refers to customers’ activities, and value generation to suppliers’ activities in creating value-in-use, we use the term ‘value creation’ to refer to the collaborative activities between suppliers and customers.

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Authors and Affiliations

  1. Institute of Economic Research, School of Economics and Management, Lund University, Lund, Sweden

    Magnus Johansson & Linn Andersson

  2. Lappeenranta University of Technology, Lappeenranta, Finland

    Joona Keränen

  3. Hinterhuber & Partners, Innsbruck, Austria

    Andreas Hinterhuber

  4. Department of Business, Chatham University, Pittsburgh, PA, USA

    Stephan Liozu

Authors
  1. Magnus Johansson
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  2. Joona Keränen
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  3. Andreas Hinterhuber
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  4. Stephan Liozu
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  5. Linn Andersson
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Corresponding author

Correspondence to Magnus Johansson.

Additional information

4holds a PhD in Management from the Weatherhead School of Management at Case Western Reserve University. He is Assistant Professor of Management and Strategy at Chatham University in Pittsburgh, PA, USA. His research focus is on value and pricing management from an organizational and managerial perspective.

5holds a PhD from the School of Economics and Management, Lund University (Sweden). Her research has addressed pricing capability in the context of business-to-business relations.

Appendix

Appendix

Figure A1

Figure A1
figure 1

Pace of product generation releases, value level and erosion.

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Value assessment capability – iterative and integrative, example functions.

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Overall theoretical hypothesis.

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Overall research design.

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Stages of the transformation process.

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Toward a model of pricing as a socio-technological innovation.

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A classification of industrial customers by value perceptions (DeVincentis and Rackham, 1998).

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Johansson, M., Keränen, J., Hinterhuber, A. et al. Value assessment and pricing capabilities—how to profit from value. J Revenue Pricing Manag 14, 178–197 (2015). https://doi.org/10.1057/rpm.2015.8

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