Understanding Value-based Pricing: Conceptualising Customer Value in a B2B Industrial Context
Abstract: The aim of this study is to define and conceptualise the dimensions of customer value for value-based pricing strategies within a B2B industrial context. Furthermore, this study advances theory and knowledge in research about pricing and B2B relationships between customers and sellers. Prior research findings were incorporated in order to develop a multidimensional and multifaceted framework showing how customer value for value-based pricing is constructed. The empirical part of the study was conducted using a case study along with guided semi-structured interviews. The sample was selected from employees of the case company ASSA ABLOY. Nine managers with touchpoints to pricing, strategy, service or sales were selected as our participants. The conducted interviews investigated how companies conceptualise value for their customers when implementing a value-based pricing strategy. The analysis of the empirical data was managed using our developed customer value framework that was derived from the literature review. The results support previous findings stating that customer value is a multidimensional and multifaceted construct consisting of five value dimensions; operational, proficiency, strategic, symbolic and social value and according facets. On the basis of our research, we suggest adding the new value dimension of environmental value as well as newly discovered facets to the conceptualisation of customer value in a B2B industrial context.
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