Increasing Profit Margins of Innovations: An Empirical Analysis of Firm's Pricing Practices

P.T.M. Ingenbleek, R.T. Frambach, Th.M.M. Verhallen

Research output: Contribution to conferenceConference paperAcademicpeer-review

Abstract

Abstract This paper examines the impact of pricing practices that refer to the use of customer value, competition, and costs information, on the relative profit margin of a new product. Hypotheses suggest that the effects of these practices are contingent on relative product advantage and the relative costs of a product. The hypotheses are tested on survey data of 144 firms. Results suggest that creating relative product advantage is not enough to run a profitable business. Engaging in the appropriate pricing practices - which are contingent on new product characteristics - enables the firm to increase profit margins of innovations. Key words: pricing practices, new product development, marketing strategy.
Original languageEnglish
Number of pages5
Publication statusPublished - 2004
EventEMAC 2004 -
Duration: 18 May 200421 May 2004

Conference

ConferenceEMAC 2004
Period18/05/0421/05/04

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