Value-informed pricing in its organizational context: literature review, conceptual framework, and directions for future research

Purpose ¿ In the face of increased pricing pressure, managerial attention for value-informed pricing (in which a price is based on the customer¿s value perception) is on the rise. Although value-informed pricing in its organizational context received a great deal of attention, the body of literature is fragmented and insights are often not cumulative. It is the aim of this article to review and integrate the empirical literature on pricing practices in order to pave the road for future research. Design/methodology/approach ¿ Empirical studies on pricing practices are collected and reviewed. Building on the resource-based view of the firm, the findings from these studies are summarized in an integrative framework that includes testable research propositions. Findings ¿ Value-informed pricing is the result of the deployment of informational resources such as market research, relationships and internal knowledge on customers. Firms should not only develop these information sources, but also secure the process by which they are deployed. The latter is among others influenced by the competitive context and organizational information processing that may evolve into a routine. Originality/value ¿ The article integrates the insights from a stream of research that thus far has been highly fragmented. It generates insights that may help firms to establish a value-informed pricing process and it may help to develop a more mature body of research on value-informed pricing.