Industry-Specific Factors Impeding the Implementation of Value-Based Pricing

Florian Steinbrenner and Jana Turčínková ()
Additional contact information
Florian Steinbrenner: Mendel University in Brno, Czech Republic

European Journal of Business Science and Technology, 2021, vol. 7, issue 1, 27-46

Abstract: Value-based pricing (VBP) is often considered the most profitable pricing method. However, VBP is rarely implemented by companies. This research study asks the question Why? and investigates the obstacles to an implementation of VBP. The objectives of this paper are to provide an assessment of customer-based obstacles to implement VBP in four different German industries and to evaluate the degree of company-based obstacles by industry. For that purpose, 792 consumer questionnaires were collected and 20 expert interviews were conducted. The results show that the technology industry is the German industry with the lowest obstacles, while the pharmaceutical industry experiences the strongest obstacles. The degree of obstacles varies significantly by industry. This study contributes to theory by taking both a customer perspective and a business perspective towards VBP while identifying the degree of the obstacles to implement VBP by industry. This paper allows future researchers and business practitioners to assess the industry-specific obstacles and take appropriate measures to overcome them.

Keywords: value; pricing; implementation; obstacles; strategy (search for similar items in EconPapers)
JEL-codes: D46 L11 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://ejobsat.cz/doi/10.11118/ejobsat.2021.004.html (text/html)
http://ejobsat.cz/doi/10.11118/ejobsat.2021.004.pdf (application/pdf)
free of charge

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:men:journl:v:7:y:2021:i:1:p:27-46

DOI: 10.11118/ejobsat.2021.004

Access Statistics for this article

European Journal of Business Science and Technology is currently edited by Svatopluk Kapounek

More articles in European Journal of Business Science and Technology from Mendel University in Brno, Faculty of Business and Economics Contact information at EDIRC.
Bibliographic data for series maintained by Ivo Andrle ().