Disruptive framing in value creation and price setting: Transforming value with strategic frames of reference

Gerald E. Smith

Business Horizons, 2020, vol. 63, issue 4, 481-491

Abstract: Framing in business is frequently found in the digital economy with dramatic and innovative new products and disruptive value propositions. However, framing in business is not an exclusively digital economic strategy. Creating or revising frames of reference, value propositions, and pricing based on either new or newly framed offerings is a basic strategy skill that brings new differential value creation to customers and new price-setting models to firms. In this article, I define framing and explain its influence on managerial cognition as well as its application to value-based marketing and price setting. Using economic value theory and behavioral economics, I propose steps managers and decision makers can take in an effort to achieve framing innovation as a way to leverage the disruptive competitive advantages that flow from strategic frames of reference in the marketplace.

Keywords: Product framing; Benefit framing; Price framing; Value proposition; Economic value (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:bushor:v:63:y:2020:i:4:p:481-491

DOI: 10.1016/j.bushor.2020.03.006

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