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Pricing objectives and their antecedents in the services sector

Pricing objectives and their antecedents in the services sector Purpose – The purpose of this paper is to provide insights into how service firms price the services that they render in the market. In particular, the association between the pricing objectives that they pursue and the organizational and environmental characteristics that influence pricing decisions are investigated. Design/methodology/approach – Data are collected from 170 companies operating in six different service sectors in Greece through personal interviews. Moreover, qualitative research through 26 in‐depth interviews is also conducted. Findings – Following the classification scheme put forward by Avlonitis and Indounas, it can be concluded that a combination of different organizational and environmental characteristics leads to each one of the eight pricing objectives examined in the study. Research limitations/implications – The above findings indicate the need to treat pricing decisions using a contingency approach. Formulating a specific pricing objective requires an examination of certain organizational and environmental concerns. The significance of these findings notwithstanding, the context of the study (Greece) is the most important caveat, since it limits the ability to generalize the results to other countries. Originality/value – This paper represents the first attempt to empirically examine the potential association between the aforementioned pricing objectives and characteristics. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Service Management Emerald Publishing

Pricing objectives and their antecedents in the services sector

Journal of Service Management , Volume 20 (3): 33 – Jun 19, 2009

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Publisher
Emerald Publishing
Copyright
Copyright © 2009 Emerald Group Publishing Limited. All rights reserved.
ISSN
1757-5818
DOI
10.1108/09564230910964426
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to provide insights into how service firms price the services that they render in the market. In particular, the association between the pricing objectives that they pursue and the organizational and environmental characteristics that influence pricing decisions are investigated. Design/methodology/approach – Data are collected from 170 companies operating in six different service sectors in Greece through personal interviews. Moreover, qualitative research through 26 in‐depth interviews is also conducted. Findings – Following the classification scheme put forward by Avlonitis and Indounas, it can be concluded that a combination of different organizational and environmental characteristics leads to each one of the eight pricing objectives examined in the study. Research limitations/implications – The above findings indicate the need to treat pricing decisions using a contingency approach. Formulating a specific pricing objective requires an examination of certain organizational and environmental concerns. The significance of these findings notwithstanding, the context of the study (Greece) is the most important caveat, since it limits the ability to generalize the results to other countries. Originality/value – This paper represents the first attempt to empirically examine the potential association between the aforementioned pricing objectives and characteristics.

Journal

Journal of Service ManagementEmerald Publishing

Published: Jun 19, 2009

Keywords: Pricing policy; Organizational culture; Service industries; Greece

References