The confidence factor in pricing: driving firm performance

Journal of Business Strategy

In a study of 748 pricing and marketing managers we identify the four critical competencies that drive the effectiveness of pricing: pricing capabilities, organizational confidence, organizational change capacity and CEO championing. This is the first quantitative study documenting a link between confidence - an attitude - and firm performance - tangible results: a 1 point improvement in confidence improves return on sales by 4% on average. 




Pricing is the most important driver of profits; surprisingly, it is also the area most executives overlook.
This research shows how to overcome common Pricing misconceptions.
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