Authors: Jawwad Z. Raja; Martin Jarmatz; Sof Thrane; Thomas Frandsen
For many industrial firms, the integration of products and services into comprehensive offerings that address specific customer needs is considered to comprise a change to their underlying business model. Whilst particular attention has been devoted to understanding firm strategies in support of such changes in business model, only limited consideration has been given to the ways in which firms undertake pricing for such offerings. In this paper, we contribute to the discussion around value-based pricing and selling using a dynamic capabilities lens. We explore the interconnection between value-based pricing and sales activities to develop a framework explaining the integrative role of learning in the development of capabilities for value-based strategies. An in-depth exploratory case-based approach is adopted. Two leading Danish manufacturers of advanced engineering equipment and a number of their customers are studied. Findings identify a number of capabilities and managerial practices necessary for value-based pricing and selling. These are presented and discussed in relation to the sensing, seizing and transforming framework within the dynamic capabilities literature.
Journal: n.a. (n.a. – n.a.)
Web Address: n.a.
Publish Year: 2016
Conference: Poznan, Poland (2016)