Value-based pricing meets twenty-first century procurement

Value-based pricing meets twenty-first century procurement

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Article ID: iaor2017853
Volume: 16
Issue: 1
Start Page Number: 4
End Page Number: 17
Publication Date: Feb 2017
Journal: J Revenue Pricing Manag
Authors:
Keywords: management, economics, supply & supply chains
Abstract:

Fierce global competition and the growth of low‐cost competitors are causing suppliers in many business and industrial markets to differentiate themselves through value‐based strategies. At the same time, procurement organizations in many businesses are assuming a more pivotal role in supplier management and buying decisions. Little research, however, has been carried out to consider how sellers’ value‐based pricing is impacted by buyers’ procurement goals and strategies. It is the aim of this article to review and integrate the empirical literature on value‐based pricing and modern procurement strategies and goals in order to construct a conceptual framework for pricing practitioners and questions for future research.

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