Successful New product pricing practices: A contingency approach
Ingenbleek, P. Debruyne, Marion Frambach, Ruud Verhallen, T.M.M.
Ingenbleek, P.
Debruyne, Marion
Frambach, Ruud
Verhallen, T.M.M.
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Publication Type
Journal article with impact factor
Editor
Supervisor
Publication Year
2003
Journal
Marketing Letters
Book
Publication Volume
14
Publication Issue
4
Publication Begin page
289
Publication End page
305
Publication Number of pages
Collections
Abstract
The purpose of this study is to examine the success of new product pricing practices and the conditions upon which success is contingent. We distinguish three different pricing practices that refer to the use of information on customer value, competition, and costs respectively. Following Monroe's (1990) price discretion, we argue that the success of these practices is contingent on relative product advantage and competitive intensity. The hypotheses are tested on pricing decisions for new industrial products. Our results show that there are no general “best” or “bad” practices, but that a contingency approach is appropriate. These results may help reduce the complexity that managers experience in pricing new products.
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Keywords
Pricing, New Product Development, Competitive Strategy