ABSTRACT

Over the past fifty years, pricing has evolved from a topic purely related to economics and academic research to a very practical and powerful instrument to drive profitability in firms. The pricing function has also evolved especially in the last two decades with the development of a strong marketing discipline and the creation of the 4Ps in which price, the only “P” that is not an initial marketing expense, plays a critical role. Today, as pricing becomes a more published topic in economics, marketing, and management literature, we also experience some barriers to making the pricing function and the profession as a whole a true managerial discipline. Compared to other disciplines such as innovation, continuous improvement, and supply chain management, the pricing function is not fully breaking through to the next level. The pricing discipline stands at an existential crossroads. Trade organizations, such as the Professional Pricing Society, and academics have been strong and passionate contributors to bring the pricing discipline to the forefront of the marketing and finance field, but these groups cannot do this alone.