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Pricing by intuition: Managerial choices with limited information

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  • Rusetski, Alexander

Abstract

In making pricing decisions, managers can chose from several pricing strategies. To ensure long-term business success, pricing choices need to balance numerous requirements, from revenue streams to keeping customers happy. The complexity of pricing decisions and time pressures that often accompany them prompt the need for fast, simplified decision algorithms. The present exploratory study examines the ways in which considerations of price fairness and competitive strategy combine in managers' decisions regarding the price level.

Suggested Citation

  • Rusetski, Alexander, 2014. "Pricing by intuition: Managerial choices with limited information," Journal of Business Research, Elsevier, vol. 67(8), pages 1733-1743.
    • Handle: RePEc:eee:jbrese:v:67:y:2014:i:8:p:1733-1743
    DOI: 10.1016/j.jbusres.2014.02.020
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    References listed on IDEAS

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    Cited by:

    1. Pere Mir-Artigues, 2022. "Combining preferences and heuristics in analysing consumer behaviour," Evolutionary and Institutional Economics Review, Springer, vol. 19(2), pages 523-543, September.
    2. Hinterhuber, Andreas & Kienzler, Mario & Liozu, Stephan, 2021. "New product pricing in business markets: The role of psychological traits," Journal of Business Research, Elsevier, vol. 133(C), pages 231-241.
    3. Bodlaj, Mateja & Čater, Barbara, 2022. "Responsive and proactive market orientation in relation to SMEs’ export venture performance: The mediating role of marketing capabilities," Journal of Business Research, Elsevier, vol. 138(C), pages 256-265.
    4. Benoit, Sabine & Kienzler, Mario & Kowalkowski, Christian, 2020. "Intuitive pricing by independent store managers: Challenging beliefs and practices," Journal of Business Research, Elsevier, vol. 115(C), pages 70-84.
    5. Reza Kheirandish & Shabnam Mousavi, 2018. "Herbert Simon, innovation, and heuristics," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 17(1), pages 97-109, November.
    6. Bogomolova, Svetlana & Szabo, Marietta & Kennedy, Rachel, 2017. "Retailers' and manufacturers' price-promotion decisions: Intuitive or evidence-based?," Journal of Business Research, Elsevier, vol. 76(C), pages 189-200.
    7. Hu Wang & Di Li & Changbin Jiang, 2023. "Online retailers' price structure decisions in competitive markets: A structure–conduct–performance framework," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 1125-1141, March.
    8. Loock, Moritz & Hinnen, Gieri, 2015. "Heuristics in organizations: A review and a research agenda," Journal of Business Research, Elsevier, vol. 68(9), pages 2027-2036.

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