ABSTRACT
The concept of pricing capability (Dutta et al. 2002, 2003; Vogel et al. 2002) applies a resource based perspective on the topic of pricing in order to capture the organizational aspects of pricing. Pricing capability is thus a highly important contribution as it turns the attention towards the organizational processes, routines and resources required to perform pricing activities and thus capture value through pricing. The concept of pricing capability originates from the recognition that (1) pricing activities are not costless (Bergen et al. 2003) and (2) pricing activities are associated with internal and external uncertainties (Dutta et al. 2003; Hinterhuber 2008b). Pricing capabilities capture the processes, routines and resources that the organization can strive to build in order to improve cost efficiency and manage uncertainty.
