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The conceptualization of pricing schemes: From product-centric to customer-centric value approaches

Author

Listed:
  • Eduard Stoppel

    (University of Kaiserslautern)

  • Stefan Roth

    (University of Kaiserslautern)

Abstract

Using different conceptualizations of value, the literature provides various approaches to value-based pricing. Against this background, this article examines the suitability of product-centric and customer-centric pricing schemes for a value-based pricing strategy. In this context, we elaborate a conceptualization of the term “pricing scheme” and provide a classification of different kinds of product- and customer-centric pricing schemes by means of their measurement unit. The focus of this article is on analyzing innovative customer-centric pricing schemes and their consequences. To support our analysis, we examine case studies and conduct expert interviews to gain insights into the experience of executive marketing managers using customer-centric pricing schemes successfully. The results show that customer-centric pricing schemes are more aligned with the customer’s value-in-use, they shift the revenues from transactions to the customer’s usage phase, and they are useful to strengthen the relationship between customer and provider.

Suggested Citation

  • Eduard Stoppel & Stefan Roth, 2017. "The conceptualization of pricing schemes: From product-centric to customer-centric value approaches," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 16(1), pages 76-90, February.
    • Handle: RePEc:pal:jorapm:v:16:y:2017:i:1:d:10.1057_s41272-016-0053-1
    DOI: 10.1057/s41272-016-0053-1
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    References listed on IDEAS

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