ASSOCIATION BETWEEN PRICING ENVIRONMENT AND VALUED-BASE PRICING
DOI:
https://doi.org/10.22561/cvr.v32i3.5932Keywords:
Prices, value, pricing, B2BAbstract
Cost methods may be used to justify price decisions, but in the end prices should represent “what the market can bear”. For this reason, value-based pricing has been recognized as superior to the other pricing practices, however it still plays a relatively minor role in pricing decisions, especially in the B2B market. Therefore, the aim of the present paper was to analyze the association between pricing environment and value-based pricing in B2B companies. Data for this study was gathered through a questionnaire survey conducted among managers of companies associated with ABINEE. Paraconsistent logic was used to identify the pricing environment and correlation matrix was used to analyze the relationship between this environment and value-based pricing. Results suggest that pricing environment of Brazilian B2B firms can moderately stimulate value-based pricing, according to the interpretation convention exposed by Davis (1976) and Sanches, Meirelles and Sordi (2010). Price-makers are associated with the use of value-based pricing at a significance level of 10%, but no internal factors are associated with it. Findings provide some support for showing that the absence of barriers does not constitute an incentive, motivating future investigations to deepen the analysis of what stimulates the value-based approach, since previous studies focused on investigating obstacles to the adoption of this approach.
References
Amaral, J. V. (2017). Custos mais margem: A forma ou a essência do estabelecimento dos preços? Universidade de São Paulo. http://dx.doi.org/10.11606/T.12.2017.tde-14062017-114043
Amaral, J. V.; Guerreiro, R. (2019). Factors explaining a cost-based pricing. Journal of Business & Industrial Marketing, 34(8), 1850-1865. http://dx.doi.org/10.1108/JBIM-12-2018-0373
Anderson, J. C., & Narus, J. (1998). No business marketing: understand what customers value title. Harvard Business Review, 76(6), 53–61.
Anderson, J. C., & Wynstra, F. (2010). Purchasing higher-value, higher-price offerings in business markets. Journal of Business-to-Business Marketing, 17(1), 29–61. http://dx.doi.org/10.1080/10517120903000363
Avlonitis, G. J., & Indounas, K. (2005). Pricing objectives and pricing methods in the services sector. Journal of Services Marketing, 19(1), 47–57. http://dx.doi.org/10.1108/08876040510579398
Banterle, A., Carraresi, L., & Cavaliere, A. (2011). What is the role of marketing capability to be a price maker? An empirical analysis in Italian food SMEs. Economia & Diritto Agroalimentare, XVI(2), 245-261.
Bhardwaj, P. (2001). Delegating pricing decisions. Marketing Science, 20(2), 143–169. http://dx.doi.org/10.1287/mksc.l060.0254
Burkert, M., Ivens, B. S., Henneberg, S., & Schradi, P. (2017). Organizing for value appropriation: configurations and performance outcomes of price management. Industrial Marketing Management, 61, 194–209. http://dx.doi.org/10.1016/j.indmarman.2016.06.007
Campomar, M. B. (2017). Decisões sobre preço em marketing considerando a influência de impostos: um estudo internacional comparando o Brasil e a Itália. Universidade de São Paulo. http://dx.doi.org/10.11606/T.12.2017.tde-27112017-170901
Carricano, M., Trinquecoste, J.-F., & Mondejar, J.-A. (2010). The rise of the pricing function: origins and perspectives. Journal of Product & Brand Management, 19(7), 468–476. http://dx.doi.org/10.1108/10610421011086883
Carvalho, F. R. (2002). Lógica paraconsistente aplicada em tomadas de decisão. São Paulo: Aleph, 2002.
Castro, P. R.; Amaral. J. V.; Guerreiro, R. (2019). Adherence to the compliance program of Brazil’s anti-corruption law and internal controls implementation. Revista Contabilidade & Finanças – USP, 30(80), 186-201. http://dx.doi.org/10.1590/1808-057x201806780
Davis, J. (1976). Levantamento de dados em sociologia. Rio de Janeiro: Zhar.
De Toni, D., & Mazzon, J. A. (2014). Teste de um modelo teórico sobre o valor percebido do preço de um produto. Revista de Administração, 49(3), 549-565. http://dx.doi.org/10.5700/rausp1167
De Toni, D., Milan, G. S., Saciloto, E. B., & Larentis, F. (2017). Pricing strategies and levels and their impact on corporate profitability. Revista de Administração, 52, 120–133. http://dx.doi.org/10.1016/j.rausp.2016.12.004
Diamantopoulos, A., & Mathews, B. P. (1994). The specification of pricing objectives: empirical evidence from an oligopoly firm. Managerial & Decision Economics, 15(1), 73–85. http://dx.doi.org/10.1002/mde.4090150109
Dutta, S., Zbaracki, M. J., & Bergen, M. (2003). Pricing process as a capability: A resource-based perspective. Strategic Management Journal, 24(7), 615–630. http://dx.doi.org/10.1002/smj.323
Farres, R. (2012). Optimal pricing models in B2B organizations. Journal of Revenue and Pricing Management, 11(1), 35-39. doi:10.1057/rpm.2011.36
Forbis, J. L., & Mehta, N. T. (1981). Value-based strategies for industrial products. Business Horizons, 24(3), 32–42. http://dx.doi.org/10.1016/0007-6813(81)90125-7
Forman, H., & Hunt, J. M. (2005). Managing the influence of internal and external determinants on international industrial pricing strategies. Industrial Marketing Management, 34(2), 133-146. doi:10.1016/j.indmarman.2004.07.011
Frenzen, H., Hansen, A.-K., Krafft, M., Mantrala, M. K., & Schmidt, S. (2010). Delegation of pricing authority to the sales force: An agency-theoretic perspective of its determinants and impact on performance. International Journal of Research in Marketing, 27(1), 58–68. http://dx.doi.org/10.1016/j.ijresmar.2009.09.006
Hallberg, N. L. (2017). The micro-foundations of pricing strategy in industrial markets: A case study in the European packaging industry. Journal of Business Research, 76, 179–188. http://dx.doi.org/10.1016/j.jbusres.2017.01.001
Hansen, A.-K., Joseph, K., & Krafft, M. (2008). Price delegation in sales organizations: an empirical investigation. Business Research, 1(1), 94–104. http://dx.doi.org/10.1007/BF03342704
Harper, D. (1966). Price policy and procedure. New York, NY: Harcourt, Brace & World.
Hinterhuber, A. (2008). Customer value-based pricing strategies: why companies resist. Journal of Business Strategy, 29(4), 41–50. http://dx.doi.org/10.1108/02756660810887079
Hinterhuber, A., & Liozu, S. (2012). Is it time to rethink your pricing strategy? MIT Sloan Management Review, 53(4), 69–77.
Hofstrand, D. (2007, March). Commodities versus differentiated products. Disponível no site da Iowa State University: https://www.extension.iastate.edu/agdm/wholefarm/html/c5-203.html
Homburg, C., & Jensen, O. (2007). The thought worlds of marketing and sales: which differences make a difference? Journal of Marketing, 71(3), 124–142. http://dx.doi.org/10.1509/jmkg.71.3.124
Homburg, C., Jensen, O., & Hahn, A. (2012). How to organize pricing? vertical delegation and horizontal dispersion of pricing authority. Journal of Marketing, 76(5), 49–69. http://dx.doi.org/10.1509/jm.11.0251
Hornby, W. B., & Macleod, M. (1996). Pricing behaviour in the Scottish computer industry. Management Decision, 34(6), 31–42. http://dx.doi.org/10.1108/00251749610121461
Indounas, K. (2019). Market-based pricing in B2B service industries. Journal of Business & Industrial Marketing, 34(5), 1030-1040. http://dx.doi.org/10.1108/JBIM-03-2018-0103
Indounas, K., & Roth, S. (2012). Antecedents and consequences of strategic price management: an analysis in the New Zealand industrial service context. Australasian Marketing Journal, 20(2), 113–121. http://dx.doi.org/10.1016/j.ausmj.2011.10.006
Ingenbleek, P. T. M. (2007). Value-informed pricing in its organizational context: literature review, conceptual framework, and directions for future research. Journal of Product & Brand Management, 16(7), 441–458. http://dx.doi.org/10.1108/10610420710834904
Ingenbleek, P. T. M., Debruyne, M., Frambach, R. T., & Verhallen, T. M. M. (2003). Successful new product pricing practices: A contingency approach. Marketing Letters, 14(4), 289–305. http://dx.doi.org/10.1023/B:MARK.0000012473.92160.3d
Johansson, M., Keränen, J., Hinterhuber, A., Liozu, S., & Andersson, L. (2015). Value assessment and pricing capabilities – how to profit from value. Journal of Revenue and Pricing Management, 14(3), 178–197. http://dx.doi.org/10.1057/rpm.2015.8
Keränen, J., & Jalkala, A. (2014). Three strategies for customer value assessment in business markets. Management Decision, 52(1), 79-100. http://dx.doi.org/10.1108/MD-04-2013-0230
Kienzler, M. (2018). Value-based pricing and cognitive biases: An overview for business markets. Industrial Marketing Management, 68, 86-94. http://dx.doi.org/10.1016/j.indmarman.2017.09.028
Liozu, S. M., & Hinterhuber, A. (2013). Pricing orientation, pricing capabilities, and firm performance. Management Decision, 51(3), 594–614. http://dx.doi.org/10.1108/00251741311309670
Liozu, S. M., Hinterhuber, A., Boland, R., & Perelli, S. (2012). The conceptualization of value-based pricing in industrial firms. Journal of Revenue and Pricing Management, 11(1), 12–34. http://dx.doi.org/10.1057/rpm.2011.34
Maroco, J., & Garcia-Marques, T. (2006). Qual a fiabilidade do alfa de Cronbach? Questões antigas e soluções modernas. Laboratório de Psicologia, 4(1), 65-90. Disponível no site do Instituto Universitário de Ciências Psicológicas, Sociais e da Vida: http://hdl.handle.net/10400.12/133
Marn, M. V, & Rosiello, R. L. (1992). Managing Price , Gaining Profit. Harvard Business Review, 70(5), 84–93.
Maxwell, S. (1998). Pricing education in the United States of America: responding to the needs of business. Journal of Product & Brand Management, 7(4), 336-341.
Miranda, L. B. S., Santos, N. A., & Almeida, F. M. (2019). Gestão de riscos de contratos de terceirização no setor público. Revista Contabilidade Vista & Revista, 30(2), 143–170.
Munnukka, J., & Järvi, P. (2012). The price-category effect and the formation of customer value of high-tech products. Journal of Consumer Marketing, 29(4), 293–301. http://dx.doi.org/10.1108/07363761211237362
Noble, P. M. & Gruca, T. S. (1999). Industrial pricing: theory and managerial practice. Marketing Science, 18(3), 435–454. http://dx.doi.org/10.1287/mksc.18.3.435
Oxenfeldt, A. R. (1961). Pricing for marketing executives. San Francisco, CA: Wadsworth Publishing Company.
Özer, Ö., & Phillips, R. (2012). Introduction. In R. Ozer, Ozalp; Phillips (Ed.), The Oxford handbook of pricing management. Oxford University Press. http://dx.doi.org/10.1093/oxfordhb/9780199543175.013.0001
Pessin, R. L., Bervian, C., Sousa, M. A., & Lacerda, D. P. (2018). Custo total de uso e propriedade: um modelo para compra de veículos de transporte de cargas. Revista Contabilidade Vista & Revista, 29(3), 50-72.
Provines, C. D. (2017). Value-based pricing meets twenty-first century procurement. Journal of Revenue and Pricing Management, 16(1), 4–17. http://dx.doi.org/10.1057/s41272-017-0080-6
Rajala, R., Töytäri, P., & Hervonen, T. (2015). Assessing customer-perceived value in industrial service systems. Service Science, 7(3), 210–226. http://dx.doi.org/10.1287/serv.2015.0108
Roll, O. (2009). Pricing trends from a management perspective. Journal of Revenue and Pricing Management, 8(4), 396–398. http://dx.doi.org/10.1057/rpm.2009.22
Sanches, C., Meirelles, M., Sordi, J. O. (2010). Análise qualitativa por meio da lógica paraconsistente: Método de interpretação e síntese da informação obtida por escalas Likert. Anais do ENEPEQ, João Pessoa, III.
Sharma, A., & Iyer, G. R. (2011). Are pricing policies an impediment to the success of customer solutions? Industrial Marketing Management, 40(5), 723–729. http://dx.doi.org/10.1016/j.indmarman.2011.06.002
Shipley, D., & Jobber, D. (2001). Integrative pricing via the pricing wheel. Industrial Marketing Management, 30(3), 301–314. http://dx.doi.org/10.1016/S0019-8501(99)00098-X
Simons, F. (2012, December 17). Price-takers have three choices. FT.com. Disponível na base de dados ProQuest ABI/INFORM Complete
Smith, A. (1776). An inquiry into the nature and causes of the wealth of nations (Facsimile). University Of Chicago Press.
Smith, M. (2015). Research Methods in Accounting (3rd ed.). London: SAGE.
Stephenson, P. R., Cron, W. L., & Frazier, G. L. (1979). Delegating pricing authority to the sales force: the effects on sales and profit performance. Journal of Marketing, 43(2), 21-28. http://dx.doi.org/10.2307/1250738
Töytäri, P., Alejandro, T. B., Parvinen, P., Ollila, I., & Rosendahl, N. (2011). Bridging the theory to application gap in value-based selling. The Journal of Business & Industrial Marketing, 26(7), 493–502. http://dx.doi.org/10.1108/08858621111162299
Töytäri, P., Keränen, J., & Rajala, R. (2017). Barriers to implementing value-based pricing in industrial markets: A micro-foundations perspective. Journal of Business Research, 76, 237–246. http://dx.doi.org/10.1016/j.jbusres.2016.04.183
Töytäri, P., & Rajala, R. (2015). Value-based selling: An organizational capability perspective. Industrial Marketing Management, 45(1), 101–112. http://dx.doi.org/10.1016/j.indmarman.2015.02.009
Töytäri, P., Rajala, R., & Alejandro, T. B. (2015). Organizational and institutional barriers to value-based pricing in industrial relationships. Industrial Marketing Management, 47, 53–64. http://dx.doi.org/10.1016/j.indmarman.2015.02.005
Ulaga, W., & Eggert, A. (2005). Relationship value in business markets: the construct and its dimensions. Journal of Business-to-Business Marketing, 12(1), 73–99. http://dx.doi.org/10.1300/J033v12n01_04
Vlaar, P. W. L., Van Den Bosch, F. A. J., & Volberda, H. W. (2006). Coping with problems of understanding in interorganizational relationships: Using formalization as a means to make sense. Organization Studies, 27(11), 1617–1638. http://dx.doi.org/10.1177/0170840606068338
Woodruff, R. B. (1997). Customer value: the next source for competitive advantage. Journal of the Academy of Marketing Science, 25(2), 139–153. http://dx.doi.org/10.1007/BF02894350
Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: a means-end model and synthesis of evidence. Journal of Marketing, 52(3), 2–22.
Downloads
Published
How to Cite
Issue
Section
License
A submissão do texto para avaliação implica no compromisso de que o material não seja submetido a um outro periódico nacional ou internacional e autoriza, caso aprovado, a sua publicação.
Os artigos publicados são de responsabilidade dos autores não traduzindo, necessariamente, a opinião da revista. A reprodução dos artigos, total ou parcial, pode ser feita desde que citada esta fonte.
Considerando que o(s) autor(es) do texto concorda(m) com a sua publicação, caso o mesmo seja aprovado pela revista, sem que disso lhe seja devido qualquer remuneração, reembolso ou compensação de qualquer natureza, a Revista Contabilidade Vista & Revista através do Departamento de Ciências Contábeis da Faculdade de Ciências Econômicas da Universidade Federal de Minas Gerais, detém todos os direitos autorais dos textos publicados, conforme a legislação brasileira vigente.
Os direitos autorais para artigos publicados nesta revista são do autor, com direitos de primeira publicação para a revista. Em virtude de aparecerem nesta revista de acesso público, os artigos são de uso gratuito, com atribuições próprias, em aplicações educacionais e não-comerciais. A revista permitirá o uso dos trabalhos publicados para fins não-comerciais, incluindo direito de enviar o trabalho para bases de dados de acesso público.