Customer value-based pricing strategies: why companies resist

Journal of Business Strategy

Value-based pricing is the key driver of profitability. Yet, surprisingly, the vast majority of companies sets prices based on costs or competitors. Based on a survey of 126 managers worldwide we identify the main obstacles companies face in implementing value based pricing.  We then offer clear-cut indications on how to overcome these obstacles. 




This framework highlights how decisions about purchase prices by customers and price setting decisions by managers consistently violate rational choice principles.
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