Pricing has a substantial and immediate impact on profitability. Most companies, however, still use costs or competition as a main basis for setting prices. Product or business model innovation has a high priority for many companies whereas innovation in pricing has received scant attention. This book examines how innovation in pricing can drive profits.
The text examines innovation in pricing from four complementary perspectives. Innovation in pricing strategy illustrates how companies implement innovative pricing strategies, such as customer value-based pricing. Innovation in pricing tactics deals with innovative tools to measure and increase customer willingness to pay and to communicate value to B2B and B2C customers. Innovation in organizing the pricing function looks at state-of-the art approaches to embed the pricing function in the organization. Psychological aspects of pricing illustrate how companies can influence customer perceptions of value and price in their question to implement innovation in pricing.
This edited volume brings together 26 articles from academics, business practitioners and consultants. Authors are from the world’s largest companies, leading research-based universities and consulting companies specialized in pricing.
This book is the only book dedicated to innovation in pricing and an essential read for business executives and pricing managers wishing to treat innovation in pricing as seriously as they treat product or business model innovation.
Finally, a book that gives dozens of examples of innovative pricing. Even one idea that grabs your attention can create a fortune. - Philip Kotler, S.C. Johnson & Son Distinguished Professor of International Marketing at Kellogg School of Management, Northwestern University, USA
Getting a fair price for a superior offer should be value based. We at SKF believe that clearly demonstrated sustainable measured value is a cornerstone of gaining competitive advantage for industry as a whole. We want our customers to be profitable and successful. This book is a must read to those who want raise the level of performance of their enterprise to become a valuable contributor to the business sector they work in. - Vartan Vartanian, President, Industrial Market, Regional Sales & Service of SKF, Sweden
The very premise of this book, that great pricing is driven by active "innovation", not passive "optimization", is itself innovative. This book is a chronology of value-based pricing innovations that have made some companies more profitable. It is both a source of inspiration and a guide to pricing more creatively and, therefore, more profitably. I hope it will prove inspirational to those who have heretofore lagged behind. - Tom Nagle, Senior Advisor of Monitor and Author of The Strategy and Tactics of Pricing, USA
From historical perspectives to the latest strategies, innovations, metrics, and research, Innovation in Pricing – Contemporary Theories and Best Practices covers a wide range of important pricing topics from leaders in industry, academia, and expert content providers. It is this breadth in both subject matter and varied viewpoints that make this book a unique, valued resource for those who wish to drive results for their companies. - Kevin Mitchell, President of The Professional Pricing Society, USA