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Value-based pricing in competitive situations with the help of multi-product price response maps

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Value-based pricing in competitive situations with the help of multi-product price response maps. / Dost, Florian; Geiger, Ingmar.

In: Journal of Business Research, Vol. 76, 07.2017, p. 219-236.

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Dost, Florian ; Geiger, Ingmar. / Value-based pricing in competitive situations with the help of multi-product price response maps. In: Journal of Business Research. 2017 ; Vol. 76. pp. 219-236.

Bibtex

@article{407a8a1dc8624d658ef5b12c35762392,
title = "Value-based pricing in competitive situations with the help of multi-product price response maps",
abstract = "This article introduces multi-product price response maps for various value pricing applications in competitive situations. The maps are based on the direct elicitation of individual willingness to pay (WTP) as a range for competing products; they reveal an individual's or market's choice probability for a focal product, at its own and competing products' prices. Transforming the price response into profit, revenue, or unit sold maps supports optimal pricing decisions. The maps are also useful for optimizing profit differences from the closest competitor and for portfolio pricing. Managers can use a consumer indecisiveness map, gained from the WTP range data, to devise complementary marketing measures at prices where consumer uncertainty is high. The illustration of this approach uses two empirical examples, featuring two or more competing consumer goods, and demonstrates the predictive and external validity of these proposed maps.",
keywords = "Value-based pricing, Competitive pricing, Price response map, Consumer indecisiveness map, Willingness to pay as a range",
author = "Florian Dost and Ingmar Geiger",
year = "2017",
month = jul,
doi = "10.1016/j.jbusres.2017.01.004",
language = "English",
volume = "76",
pages = "219--236",
journal = "Journal of Business Research",
issn = "0148-2963",
publisher = "Elsevier Inc.",

}

RIS

TY - JOUR

T1 - Value-based pricing in competitive situations with the help of multi-product price response maps

AU - Dost, Florian

AU - Geiger, Ingmar

PY - 2017/7

Y1 - 2017/7

N2 - This article introduces multi-product price response maps for various value pricing applications in competitive situations. The maps are based on the direct elicitation of individual willingness to pay (WTP) as a range for competing products; they reveal an individual's or market's choice probability for a focal product, at its own and competing products' prices. Transforming the price response into profit, revenue, or unit sold maps supports optimal pricing decisions. The maps are also useful for optimizing profit differences from the closest competitor and for portfolio pricing. Managers can use a consumer indecisiveness map, gained from the WTP range data, to devise complementary marketing measures at prices where consumer uncertainty is high. The illustration of this approach uses two empirical examples, featuring two or more competing consumer goods, and demonstrates the predictive and external validity of these proposed maps.

AB - This article introduces multi-product price response maps for various value pricing applications in competitive situations. The maps are based on the direct elicitation of individual willingness to pay (WTP) as a range for competing products; they reveal an individual's or market's choice probability for a focal product, at its own and competing products' prices. Transforming the price response into profit, revenue, or unit sold maps supports optimal pricing decisions. The maps are also useful for optimizing profit differences from the closest competitor and for portfolio pricing. Managers can use a consumer indecisiveness map, gained from the WTP range data, to devise complementary marketing measures at prices where consumer uncertainty is high. The illustration of this approach uses two empirical examples, featuring two or more competing consumer goods, and demonstrates the predictive and external validity of these proposed maps.

KW - Value-based pricing

KW - Competitive pricing

KW - Price response map

KW - Consumer indecisiveness map

KW - Willingness to pay as a range

U2 - 10.1016/j.jbusres.2017.01.004

DO - 10.1016/j.jbusres.2017.01.004

M3 - Journal article

VL - 76

SP - 219

EP - 236

JO - Journal of Business Research

JF - Journal of Business Research

SN - 0148-2963

ER -