IDEAS home Printed from https://ideas.repec.org/a/pal/jorapm/v24y2025i3d10.1057_s41272-025-00530-z.html
   My bibliography  Save this article

Unlocking value-based pricing: the moderating roles of pricing capabilities and contingency factors in B2B markets: an empirical approach

Author

Listed:
  • Oliver Roll

    (Hochschule Osnabrück
    Prof. Roll & Pastuch)

  • Jan Luca Geerties

    (Prof. Roll & Pastuch)

Abstract

Despite its advantages, value-based pricing is rarely used in practice. This paper examines how pricing capabilities and contingency factors influence the success of value-based pricing. Based on a cross-sectional business-to-business (B2B) survey the study tests a model that incorporates value quantification capability and sales force negotiation capability, customer price sensitivity, and price-related market dynamism. The research indicates that value-based pricing enhances market effectiveness, value quantification increases the effect of value-based pricing on profitability, and customer price sensitivity negatively moderates these main effects. This study emphasizes the importance of investing in value quantification tools and assessing customer price sensitivity in pricing.

Suggested Citation

  • Oliver Roll & Jan Luca Geerties, 2025. "Unlocking value-based pricing: the moderating roles of pricing capabilities and contingency factors in B2B markets: an empirical approach," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 24(3), pages 232-253, June.
    • Handle: RePEc:pal:jorapm:v:24:y:2025:i:3:d:10.1057_s41272-025-00530-z
    DOI: 10.1057/s41272-025-00530-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41272-025-00530-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41272-025-00530-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Paul Ingenbleek & Marion Debruyne & Ruud T. Frambach & Theo M. M. Verhallen, 2003. "Successful New Product Pricing Practices: A Contingency Approach," Marketing Letters, Springer, vol. 14(4), pages 289-305, December.
    2. Stephan M Liozu, 2016. "The evolution and future of pricing capabilities," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 15(3), pages 306-316, July.
    3. Jelke Bethlehem, 2010. "Selection Bias in Web Surveys," International Statistical Review, International Statistical Institute, vol. 78(2), pages 161-188, August.
    4. Andreas Hinterhuber & Todd C. Snelgrove & Bo-Inge Stensson, 2021. "Value first, then price: the new paradigm of B2B buying and selling," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(4), pages 403-409, August.
    5. Florian Steinbrenner & Jana Turčínková, 2021. "The Value-Based Pricing Determination Matrix for Pricing Method Selection," Central European Business Review, Prague University of Economics and Business, vol. 2021(4), pages 99-123.
    6. Raja, Jawwad Z. & Frandsen, Thomas & Kowalkowski, Christian & Jarmatz, Martin, 2020. "Learning to discover value: Value-based pricing and selling capabilities for services and solutions," Journal of Business Research, Elsevier, vol. 114(C), pages 142-159.
    7. Neil A. Morgan & Douglas W. Vorhies & Charlotte H. Mason, 2009. "Market orientation, marketing capabilities, and firm performance," Strategic Management Journal, Wiley Blackwell, vol. 30(8), pages 909-920, August.
    8. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    9. Shantanu Dutta & Mark J. Zbaracki & Mark Bergen, 2003. "Pricing process as a capability: a resource‐based perspective," Strategic Management Journal, Wiley Blackwell, vol. 24(7), pages 615-630, July.
    10. Stephan M. Liozu, 2017. "State of value-based-pricing survey: Perceptions, challenges, and impact," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 16(1), pages 18-29, February.
    11. Frenzen, Heiko & Hansen, Ann-Kristin & Krafft, Manfred & Mantrala, Murali K. & Schmidt, Simone, 2010. "Delegation of pricing authority to the sales force: An agency-theoretic perspective of its determinants and impact on performance," International Journal of Research in Marketing, Elsevier, vol. 27(1), pages 58-68.
    12. Gregory G. Dess & Richard B. Robinson, 1984. "Measuring organizational performance in the absence of objective measures: The case of the privately‐held firm and conglomerate business unit," Strategic Management Journal, Wiley Blackwell, vol. 5(3), pages 265-273, July.
    13. Peter M. Noble & Thomas S. Gruca, 1999. "Response to the Comments on “Industrial Pricing: Theory and Managerial Practice”," Marketing Science, INFORMS, vol. 18(3), pages 458-459.
    14. Peter M. Noble & Thomas S. Gruca, 1999. "Industrial Pricing: Theory and Managerial Practice," Marketing Science, INFORMS, vol. 18(3), pages 435-454.
    15. Hinterhuber, Andreas, 2017. "Value quantification capabilities in industrial markets," Journal of Business Research, Elsevier, vol. 76(C), pages 163-178.
    16. P. Bentler, 1983. "Some contributions to efficient statistics in structural models: Specification and estimation of moment structures," Psychometrika, Springer;The Psychometric Society, vol. 48(4), pages 493-517, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ian Yeoman, 2025. "The evolution of pricing," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 24(3), pages 201-203, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stephan M. Liozu & Sven Feurer & Andreas Hinterhuber & Arch Woodside, 2021. "Configurational theory and practices of firms employing multiple pricing policies: assessing effective and ineffective pricing recipes in multiple firm contexts," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(4), pages 420-435, August.
    2. Tessa Christina Flatten & Andreas Engelen & Timo Möller & Malte Brettel, 2015. "How Entrepreneurial Firms Profit from Pricing Capabilities: An Examination of Technology–Based Ventures," Entrepreneurship Theory and Practice, , vol. 39(5), pages 1111-1136, September.
    3. Florian Steinbrenner & Jana Turčínková, 2021. "Industry-Specific Factors Impeding the Implementation of Value-Based Pricing," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 7(1), pages 27-46.
    4. Wallusch Jacek, 2023. "Pricing and data science: The tale of two accidentally parallel transitions," Economics and Business Review, Sciendo, vol. 9(2), pages 115-132, April.
    5. Stephan M. Liozu, 2021. "The adoption of pricing from an organizational perspective and its impact on relative firm performance," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(4), pages 390-402, August.
    6. 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.
    7. Dirk Totzek & Sascha Alavi, 2010. "Professionalisierung des Preismanagements auf Business-to-Business-Märkten: Die Rolle der Marktorientierung und der Unternehmenskultur," Schmalenbach Journal of Business Research, Springer, vol. 62(5), pages 533-562, August.
    8. Kyung-A Sun & Joonho Moon, 2023. "Franchisors’ Strategic Pricing Approaches for Franchise Fee Decisions and the Moderating Role of the Competitive Condition: Evidence from the Korean Franchising Market," Administrative Sciences, MDPI, vol. 13(9), pages 1-14, August.
    9. Henri Kuokkanen & Jean-Pierre Van der Rest, 2022. "Game—Gimme a Better Price! A Negotiation Role Play on B2B Pricing in Hotel Revenue Management," INFORMS Transactions on Education, INFORMS, vol. 23(1), pages 46-55, September.
    10. Mostafiz, Md Imtiaz & Ahmed, Farhad Uddin & Tardios, Janja & Hughes, Paul & Tarba, Shlomo Y., 2025. "Configuring international entrepreneurial orientation and dynamic internationalization capability to predict international performance," International Business Review, Elsevier, vol. 34(2).
    11. Boccali, Filippo & Mariani, Marcello M. & Visani, Franco & Mora-Cruz, Alexandra, 2022. "Innovative value-based price assessment in data-rich environments: Leveraging online review analytics through Data Envelopment Analysis to empower managers and entrepreneurs," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    12. Kyung-A Sun & Seoki Lee, 2024. "How do strategic pricing approaches influence franchise fee decisions?," Tourism Economics, , vol. 30(6), pages 1508-1530, September.
    13. Lorenzo Corno & Giovanni Dosi & Luigi Marengo, 2025. "Behaviours and Learning in Complex Evolving Economies," GREDEG Working Papers 2025-14, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    14. Christen, Tatjana & Hess, Manuel & Grichnik, Dietmar & Wincent, Joakim, 2022. "Value-based pricing in digital platforms: A machine learning approach to signaling beyond core product attributes in cross-platform settings," Journal of Business Research, Elsevier, vol. 152(C), pages 82-92.
    15. Hoque, Mohammad Tayeenul & Nath, Prithwiraj & Ahammad, Mohammad Faisal & Tzokas, Nikolaos & Yip, Nick, 2022. "Constituents of dynamic marketing capability: Strategic fit and heterogeneity in export performance," Journal of Business Research, Elsevier, vol. 144(C), pages 1007-1023.
    16. Pinho, José Carlos & Prange, Christiane, 2016. "The effect of social networks and dynamic internationalization capabilities on international performance," Journal of World Business, Elsevier, vol. 51(3), pages 391-403.
    17. Gliga, Gabriela & Evers, Natasha, 2023. "Marketing capability development through networking – An entrepreneurial marketing perspective," Journal of Business Research, Elsevier, vol. 156(C).
    18. Martin Spann & Marc Fischer & Gerard J. Tellis, 2015. "Skimming or Penetration? Strategic Dynamic Pricing for New Products," Marketing Science, INFORMS, vol. 34(2), pages 235-249, March.
    19. Raja, Jawwad Z. & Frandsen, Thomas & Kowalkowski, Christian & Jarmatz, Martin, 2020. "Learning to discover value: Value-based pricing and selling capabilities for services and solutions," Journal of Business Research, Elsevier, vol. 114(C), pages 142-159.
    20. Lorenzo Corno & Giovanni Dosi & Luigi Marengo, 2025. "Behaviours and Learning in Complex Evolving Economies," LEM Papers Series 2025/11, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jorapm:v:24:y:2025:i:3:d:10.1057_s41272-025-00530-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.