ABSTRACT
Compared to other management responsibilities, pricing receives relatively little attention from practitioners and scholars (Malhotra 1996; Carricano et al. 2010). The Professional Pricing Society, the world’s largest organization dedicated to pricing, estimates that fewer than 5 per cent of Fortune 500 companies have a full-time function exclusively dedicated to pricing (Mitchell 2011) and, similarly, among AACSB (The Association to Advance Collegiate Schools of Business) accredited business schools, only 9 per cent offer courses that put a significant emphasis on pricing (McCaskey and Brady 2007). Yet several studies suggest pricing has substantial and immediate effects on company profitability: small variations in price influence the bottom line by as much as 20 per cent to 50 per cent in both directions.
