As with executives and managers in so many other business functions, pricing specialists are being challenged more and more to substantiate the added value of their activities. Pricing is a core function of every business and needs not only to contribute positively to short- and long-term results but also to document its impact on the bottom line. A fundamental part of this is the pricing return on investment (ROI) calculations.
This second book, edited by globally renowned thought leaders Stephan Liozu and Andreas Hinterhuber, is the first to outline contemporary theories and best practices of documenting pricing ROI and make the case for pricing investments. It provides proven methods, practices and theories on how to calculate the impact of pricing activities on performance. Marketing ROI is now a common concept; this collection aims to do the same for pricing. Liozu and Hinterhuber introduce the concept of pricing ROI, documenting and quantifying the return on pricing activities and on the pricing function, which itself is of increasing relevance today and in the future, in times of budget constraints. Twenty world-class specialists explore the concept of pricing ROI from both a theoretical perspective and a managerial perspective to shed much-needed light on how to measure and increase pricing ROI.
This ground-breaking book will enlighten students and specialists of marketing and sales, pricing managers and executives alike.
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.