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.
|Number of pages||5|
|Publication status||Published - 2004|
|Event||EMAC 2004 - |
Duration: 18 May 2004 → 21 May 2004
|Period||18/05/04 → 21/05/04|