The conceptualization of pricing schemes: From product-centric to customer-centric value approaches

Using different conceptualizations of value, the literature provides various approaches to value‐based pricing. Against this background, this article examines the suitability of product‐centric and customer‐centric pricing schemes for a value‐based pricing strategy. In this context, we elaborate a conceptualization of the term ‘pricing scheme’ and provide a classification of different kinds of product‐ and customer‐centric pricing schemes by means of their measurement unit. The focus of this article is on analyzing innovative customer‐centric pricing schemes and their consequences. To support our analysis, we examine case studies and conduct expert interviews to gain insights into the experience of executive marketing managers using customer‐centric pricing schemes successfully. The results show that customer‐centric pricing schemes are more aligned with the customer’s value‐in‐use, they shift the revenues from transactions to the customer’s usage phase, and they are useful to strengthen the relationship between customer and provider.