Title: Value-adding Pricing Processes. An empirical investigation of pricing practice.
Authors: Hans-Christian Riekhof, Benedikt Lohaus (2009)
Abstract
Process aspects are increasingly coming into focus of the scientific debate on the topic of pricing. At the same time, a change is also becoming apparent in business practice; pricing is no longer just the calculation of the contribution margin or sales volume optimal price, the issuance of price lists and the determination of discount levels. Rather, questions of price strategy, the organization of pricing and the design of pricing processes are increasingly coming into the management’s view. Possibly, there is an increasing awareness of the importance of the price as a profit driver.
In an empirical survey, it was examined to what extent continuous pricing processes are already established in business practice and to what degree the individual process components are implemented. The survey was conducted using a questionnaire that was sent to a total of 1824 executives and experts from companies. At the end of the survey, a response rate of 21% (377 absolute) was achieved, which can certainly be seen as an indicator of the relevance of the topic in practice. The evaluation of the answers showed that the importance of pricing and pricing processes is indeed recognized by managers, but that the derivation and implementation of the findings regarding the pricing practice of companies still lags behind the state of knowledge. Overall, the study provides indications that there is untapped potential with regard to pricing processes, the exploitation of which can be a way to a more professional and value-adding pricing.
