ABSTRACT
The concept of pricing capabilities (Dutta et al., 2002, 2003) is a highly important contribution to the field of pricing as it applies a resource and capabilities-based approach to pricing and thus highlights the strategic importance of organizational processes and routines in association with pricing. This chapter focuses on pricing capabilities and, in particular, pricing processes in fast paced, innovative business-to-business settings. It outlines pricing processes of firms depending on:
A high innovation pace of products offered and
High levels of customization of products.
It illustrates these pricing processes with examples from a large firm within the semiconductor industry. By studying pricing processes and value assessment in these settings, the chapter challenges assumptions by Dutta et al. (2003) in the pricing processes underlying the pricing capabilities concept. It shows how assumptions of value, as defined in advance of pricing processes and thus pricing capabilities, limit the application of the concept in fast-paced, innovative and high-level customization settings.
