Purpose – The purpose of this paper is to provide insight into the way industrial service firms price the services they render in the market, with particular emphasis on the pricing practices of pricing‐competent firms. Design/methodology/approach – In order to achieve the study's research objectives, data were collected through a mail survey from 129 transportation and 48 information technology companies. Moreover, 20 in‐depth personal interviews were conducted in the initial phase of the research. Findings – The study found that pricing‐competent firms have developed a “holistic” and multi‐faceted pricing approach, paying attention to both company‐ and market‐related pricing objectives, methods, policies, and information. Research limitations/implications – These findings underline the multidimensionality that characterizes pricing decisions, necessitating a systematic approach triggered by the thorough examination of both company‐ and market‐related characteristics. The significance of these findings notwithstanding, the narrow context of the study does limit generalization of its findings to other service sectors and national contexts. Originality/value – The paper constitutes the first attempt to examine empirically the concept of pricing performance in an industrial service context.
Journal of Business & Industrial Marketing – Emerald Publishing
Published: Jan 30, 2009
Keywords: Pricing; Pricing policy; Services marketing
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