Revenue models for integrated customer solutions: Concept and organizational implementation

Revenue models for integrated customer solutions: Concept and organizational implementation

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Article ID: iaor20104363
Volume: 9
Issue: 3
Start Page Number: 228
End Page Number: 238
Publication Date: May 2010
Journal: Journal of Revenue and Pricing Management
Authors: , ,
Keywords: customer care
Abstract:

Integrating products and services to customized solutions can help firms to differentiate from their competitors. In practice, however, various companies fall short in extracting value from their customers. Therefore this article suggests using innovative pricing approaches for solutions, based on the value created for the customer. Applying value-based revenue models makes internal pricing decisions more complex and calls for precise courses of action. To facilitate their organizational implementation, the article adopts a process-oriented perspective and derives a generic price management process with crucial routines and activities based on 15 in-depth interviews with practitioners from various industries.

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