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State of the implementation of the value-based pricing's principles in Portugal

Author

Listed:
  • Leandro Pereira
  • Henrique Centeno
  • José Pedro Santos

Abstract

In an increasingly competitive business world, companies need to adapt and make their strategies meet the clients needs and so, it is important to consider the customer perceived value upon establishing the strategies to implement in the definition of their services and products values. Therefore, it is of the utmost importance to adopt the value-based pricing as a pricing strategy, as the guideline of this strategy for the definition of services and products is the customer perceived value in order to gain competitive advantage. This paper has the main purpose of analysing the state of the implementation of value-based pricing principles in Portugal, through a questionnaire, and to understand whether companies use this strategy or not, how they assess their costumer's perceived value and the main constraints to its use. It is possible to conclude that, even though most companies know this pricing strategy, it is the one they use the least, as the subjectivity of the customer's perceived value poses as the main obstacle to the implementation of this strategy.

Suggested Citation

  • Leandro Pereira & Henrique Centeno & José Pedro Santos, 2020. "State of the implementation of the value-based pricing's principles in Portugal," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 23(4), pages 421-434.
    • Handle: RePEc:ids:ijbire:v:23:y:2020:i:4:p:421-434
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