Make pricing power a strategic priority for your business

Stephan M. Liozu

Business Horizons, 2019, vol. 62, issue 1, 117-128

Abstract: In the face of rising business complexity and competitive pressure, many firms succumb to price pressures and enter pricing wars. Others focus on creating, quantifying, and capturing pricing power from their market. Since 2011, with help from Warren Buffet and Jim Cramer, Wall Street financial analysts have begun paying close attention to firms with great pricing power. But what is pricing power? How do firms know whether they have it? And how does it affect profit? This research, based on a survey of 128 organizations, identifies and validates the drivers of pricing power and its impact on firm performance. In this article, I create and validate a pricing power assessment instrument that firms can use to get started. This article offers practical recommendations for go-to-market functions on how to start the pricing power discussion, how to measure it, and how to operationalize it.

Keywords: Pricing strategy; Pricing power; Market differentiation; Innovation strategy (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S000768131830154X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:bushor:v:62:y:2019:i:1:p:117-128

DOI: 10.1016/j.bushor.2018.09.006

Access Statistics for this article

Business Horizons is currently edited by C. M. Dalton

More articles in Business Horizons from Elsevier
Bibliographic data for series maintained by Catherine Liu ().