EconPapers    
Economics at your fingertips  
 

The conceptualization of pricing schemes: From product-centric to customer-centric value approaches

Eduard Stoppel () and Stefan Roth
Additional contact information
Eduard Stoppel: University of Kaiserslautern
Stefan Roth: University of Kaiserslautern

Journal of Revenue and Pricing Management, 2017, vol. 16, issue 1, 76-90

Abstract: Abstract Using different conceptualizations of value, the literature provides various approaches to value-based pricing. Against this background, this article examines the suitability of product-centric and customer-centric pricing schemes for a value-based pricing strategy. In this context, we elaborate a conceptualization of the term “pricing scheme” and provide a classification of different kinds of product- and customer-centric pricing schemes by means of their measurement unit. The focus of this article is on analyzing innovative customer-centric pricing schemes and their consequences. To support our analysis, we examine case studies and conduct expert interviews to gain insights into the experience of executive marketing managers using customer-centric pricing schemes successfully. The results show that customer-centric pricing schemes are more aligned with the customer’s value-in-use, they shift the revenues from transactions to the customer’s usage phase, and they are useful to strengthen the relationship between customer and provider.

Keywords: usage-based pricing; pay-per-use; value co-creation; value-in-use; pricing model; customer solutions (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1057/s41272-016-0053-1 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:pal:jorapm:v:16:y:2017:i:1:d:10.1057_s41272-016-0053-1

Ordering information: This journal article can be ordered from
https://www.palgrave.com/gp/journal/41272

DOI: 10.1057/s41272-016-0053-1

Access Statistics for this article

Journal of Revenue and Pricing Management is currently edited by Ian Yeoman

More articles in Journal of Revenue and Pricing Management from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2020-03-07
Handle: RePEc:pal:jorapm:v:16:y:2017:i:1:d:10.1057_s41272-016-0053-1