Pricing Integrated Customer Solutions: A Process-Oriented Perspective on Value Appropriation

E-ISSN： 1947-9603|1|3|1-16

ISSN： 1947-959x

Source： International Journal of Service Science, Management, Engineering, and Technology (IJSSMET), Vol.1, Iss.3, 2010-07, pp. : 1-16

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Abstract

Integrating products and services to customized solutions can help firms differentiate from their competitors. In practice, however, various companies fall short in extracting value from their customers. Therefore, this paper focuses on pricing aspects as central means for value appropriation in the context of solutions. Following the resource-based view of the firm, the authors adopt a process-oriented perspective on pricing practices in order to identify crucial factors and activities. Based on 15 in-depth interviews with practitioners from various industries, this paper derives six steps of a price management process for value appropriation in the context of solution selling and presents critical activities and routines within each step.