Pricing targets and pricing methods inside the
George L. Avlonitis and Kostis A. Indounas
Division of Marketing and Communication, Athens University of Economics and Business, Athens, Greece Subjective
Purpose вЂ“ The purpose of this research paper is to check out the charges objectives that service businesses pursue together with the pricing strategies that they choose in order to collection their rates.
Design/methodology/approach вЂ“ An extensive report on the materials revealed the entire lack of any kind of previous work aiming to research the potential affiliation between those two important portions of a company's pricing approach. Thus, the importance of the newspaper lies in the simple fact that it reveals the initially attempt to examine this issue empirically. In order to achieve the research targets, data were collected coming from 170 firms operating in six different companies sectors in Greece through personal interviews. Findings вЂ“ The findings of the examine reveal which the objectives, which can be pursued, happen to be fundamentally qualitative rather than quantitative in their mother nature with a particular emphasis given on the companies' customers. Yet , the charges methods, which can be adopted by majority of the companies, refer to the traditional cost-plus method and the pricing according to the market's average prices. The study also revealed that the pricing objectives are, as should be expected, associated with the pricing methods. Practical effects вЂ“ The practical significance of the conclusions refer to the simple fact that managers might gain a lot by placing their very own emphasis on a built-in pricing procedure and put into action pricing methods that are in accordance with the pricing objectives that have been initially established. However , the context in the study (Greece) is an obvious limitation to the ability to extend these findings, suggesting the need for future analysis that produces the current research in other countries.
Originality/value вЂ“ Managers might gain a lot by placing their emphasis on an integrated pricing way and implement pricing strategies that are consistent with the prices objectives which have been initially collection. Keywords Services industries, Prices policy, Portugal
Paper type Research paper
An exec summary intended for managers and executive
viewers can be found at the final of this article.
A number of different experts have underlined the
importance of pricing decisions for every provider's
profitability and long-term endurance. For instance, Nagle and Holden (1995, l. 1) mention:
[... ] if effective product development, promo and syndication sow the seeds of business accomplishment, effective pricing is the harvesting. Although powerful pricing cannot compensate for poor execution from the first three elements, ineffective pricing can easily surely stop those efforts form causing financial achievement.
Moreover, Marn and Rosiello (1992), Sue (1992),
Lovelock (1996), and Shipley and Jobber (2001) have
suggested that costs is the only element of the marketing
mix that makes revenues to get the company, while all of the others happen to be related to expenditures. Diamantopoulos (1991) has also
asserted that price is the most adaptable element of advertising
strategy because pricing decisions can be executed
relatively quickly in comparison with the other portions of
Regardless of this significance of pricing as an element of the
industry’s marketing strategy, there will be a insufficient
interest among marketing teachers on this issue, which has
brought Nagle and Holden (1995) to claim that pricing is
the most neglected element of the marketing mixture. Within this circumstance, the scientific research that has been conducted about
the discipline of charges is very limited, while this can be even more apparent in your case of services. Nevertheless , the special
characteristics of services (intangibility, heterogeneity,
perishability and inseparability) necessitate a closer look at the approach at which services are priced (Schlissel...
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