Journal of Revenue and Pricing Management

, Volume 16, Issue 1, pp 76–90 | Cite as

The conceptualization of pricing schemes: From product-centric to customer-centric value approaches

Original Article
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Abstract

Using different conceptualizations of value, the literature provides various approaches to value-based pricing. Against this background, this article examines the suitability of product-centric and customer-centric pricing schemes for a value-based pricing strategy. In this context, we elaborate a conceptualization of the term “pricing scheme” and provide a classification of different kinds of product- and customer-centric pricing schemes by means of their measurement unit. The focus of this article is on analyzing innovative customer-centric pricing schemes and their consequences. To support our analysis, we examine case studies and conduct expert interviews to gain insights into the experience of executive marketing managers using customer-centric pricing schemes successfully. The results show that customer-centric pricing schemes are more aligned with the customer’s value-in-use, they shift the revenues from transactions to the customer’s usage phase, and they are useful to strengthen the relationship between customer and provider.

Keywords

usage-based pricing pay-per-use value co-creation value-in-use pricing model customer solutions 

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Copyright information

© Macmillan Publishers Ltd 2016

Authors and Affiliations

  1. 1.Faculty of Business Studies and EconomicsUniversity of KaiserslauternKaiserslauternGermany

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