Capturing the unique value of services: why pricing of services is different

Capturing the unique value of services: why pricing of services is different Much attention has been paid to the pricing of goods, but services now constitute almost half of the US economy and they have their own pricing requirements. Services differ from goods in that the choice of pricing structure is more fluid, as for example in determining the unit of charging. In addition, services tend to be more variable in quality because they are impacted by unique customer needs and environment. Thus, a framework for taking into account quality differences (risks) is integral to the price structure. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Business Strategy Emerald Publishing

Capturing the unique value of services: why pricing of services is different

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Publisher
Emerald Publishing
Copyright
Copyright © 2004 Emerald Group Publishing Limited. All rights reserved.
ISSN
0275-6668
DOI
10.1108/02756660410525371
Publisher site
See Article on Publisher Site

Abstract

Much attention has been paid to the pricing of goods, but services now constitute almost half of the US economy and they have their own pricing requirements. Services differ from goods in that the choice of pricing structure is more fluid, as for example in determining the unit of charging. In addition, services tend to be more variable in quality because they are impacted by unique customer needs and environment. Thus, a framework for taking into account quality differences (risks) is integral to the price structure.

Journal

Journal of Business StrategyEmerald Publishing

Published: Apr 1, 2004

Keywords: Pricing; Services; Quality; Competitive strategy; Marketing; Customer satisfaction

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