Pricing has a substantial and immediate impact on profitability. Most companies, however, still use costs or competition as a main basis for setting prices. Product or business model innovation has a high priority for many companies whereas innovation in pricing has received scant attention. This book examines how innovation in pricing can drive profits.

The text examines innovation in pricing from four complementary perspectives. Innovation in Pricing Strategy illustrates how companies implement innovative pricing strategies, such as customer value-based pricing. Innovation in Pricing Tactics deals with innovative tools to measure and increase customer willingness to pay and to communicate value to B2B and B2C customers. Innovation in Organizing the Pricing Function looks at state-of-the art approaches to embed the pricing function in the organization. Psychological Aspects of Pricing illustrates how companies can influence customer perceptions of value and price in their question to implement innovation in pricing.

This edited volume brings together 26 articles from academics, business practitioners and consultants. Authors are from the world’s largest companies, leading research-based universities and consulting companies specialized in pricing.

This book is the only book dedicated to innovation in pricing and an essential read for business executives and pricing managers wishing to treat innovation in pricing as seriously as they treat product or business model innovation.

part |2 pages

PART I Introduction

chapter 1|22 pages

Innovation in pricing: Introduction

ByAndreas Hinterhuber, Stephan M. Liozu

part |2 pages

PART II Innovation in organizing the pricing function

chapter 2|19 pages

The organizational design of the pricing function in firms: a centre-led management approach

ByStephan M. Liozu, Kellie Ecker

chapter 4|32 pages

CEO championing of pricing and the impact on firm performance

ByStephan M. Liozu, Andreas Hinterhuber, Sheri Perelli, Toni M. Somers

chapter 5|20 pages

Who is in charge of value? The emerging role of Chief Value Officer

ByRonald J. Baker, Stephan M. Liozu

part |2 pages

PART III Innovation in pricing strategy

chapter 7|20 pages

Innovation in B2B pricing

ByRafael Farrés

chapter 8|13 pages

Why segmentation matters

ByLinda Trevenen

chapter 9|14 pages

The five fundamental value factors

ByRalf Drews

chapter 10|5 pages

The journey to pricing excellence: the case of a mid-sized manufacturing firm

ByW. Michael Crouch, Greg Hunsicker

chapter 11|14 pages

Pricing processes in fast paced business-to-business settings

ByMagnus Johansson

chapter 12|20 pages

Pricing due diligence in the mergers and acquisition process

ByDavid Dvorin, Jered W. Haedt, Vernon E. Lennon

chapter 13|11 pages

Busting the four fatal myths in pricing

ByNelson Hyde

chapter 15|4 pages

Pricing strategies for recessionary times

ByFernando Resende

chapter 16|8 pages

A zero-based approach to the pricing strategy

ByRoberto Bedotto

part |2 pages

PART IV Innovation in pricing tactics

chapter 18|15 pages

Value: distilling the essence

chapter 19|10 pages

Innovations in determining willingness-to-pay for B2B companies

ByNeil Biehn, Craig Zawada

chapter 20|12 pages

Cross-functional collaboration in value-based pricing

BySteven Forth

chapter 21|13 pages

Implementing effective pricing strategies: tools for tracking prices

ByRichard Coppoolse

chapter 22|21 pages

Winning on the margin: the B2B value imperative

ByMike Moorman

chapter 23|11 pages

The thick and thin tails of pricing

ByDarren Huxol

part |2 pages

PART V Psychological aspects of pricing

chapter 24|19 pages

Behavioral aspects of pricing

ByBen Lowe, Julian Lowe, David Lynch

chapter 25|17 pages

Research on odd prices: dead end or field of potential innovation?

ByCarmen Balan

part |2 pages

PART VI The next frontier

chapter 27|7 pages

The next frontier of the pricing profession

ByKevin Mitchell