Mindful Pricing: Transforming Organizations Through Value Based Pricing

  • Stephan Liozu
  • Dick Boland
  • Andreas Hinterbuber
  • Sheri Perelli
Conference paper
Part of the Developments in Marketing Science: Proceedings of the Academy of Marketing Science book series (DMSPAMS)


We address the following paradox: most scholars consider value based pricing as superior to cost and competition based approaches in industrial markets -yet, few firms use it. Semi-structured interviews with 44 managers of small to medium size U.S. industrial firms revealed key characteristics that are common to the firms who successfully implement value-based pricing: the ability to face deep transformational change, the role of champions as transformational leaders, the creation and diffusion of organizational mindfulness, the building of organizational confidence to fuel the transformation, and the design of center-led and specialized teams of experts supporting the firm’s pricing process. Our data demonstrates that value-based pricing is not simply adopted but internalized through a long and purposeful process supported by a mindful, experiential and transformative learning environment.


Industrial pricing pricing orientation value-based pricing collective mindfulness organizational learning 


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Anderson, J., N. Kumar and J. A. Narus. 2007. Value Merchants: Demonstrating and Documenting Superior Value in Business Markets. Harvard Business School Press.Google Scholar
  2. Bandura, A. 1986. Social Foundations of Thought and Action. Prentice Hall.Google Scholar
  3. Bandura, A. 1997. Self-efficacy: The Exercise of Control. Worth Publishers.Google Scholar
  4. Bandura, A. 2000. “Exercise of Human Agency Through Collective Efficacy.” Current Directions in Psychological Science 9 (3): 75–78.CrossRefGoogle Scholar
  5. Bass, B. 1985. Leadership and Performance Beyond Expectations. New York: Free Press.Google Scholar
  6. Bohn, J. 2001. The Design and Validation of an Instrument to Assess Organizational Efficacy, Unpublished Dissertation, University of Wisconsin - Milwaukee.Google Scholar
  7. Brownlie, D. and J. Spender. 1995. “Managerial Judgement in Strategic Marketing.” Management Decision 33 (6): 39–50.CrossRefGoogle Scholar
  8. Corbin, J. and A. Strauss. 2008. Basics of Qualitative Research. Sage Publications, Inc.Google Scholar
  9. Cressman, Jr., G. 2010. “Selling Value-Based Pricing Strategies: Making Pricing Strategy Work.” The Journal of Professional Pricing (First Quarter 2010): 16–19.Google Scholar
  10. Daft, R. and K. Weick. 1984. “Toward a Model of Organizations As Interpretation Systems.” The Academy of Management Review 9 (2): 284–95.Google Scholar
  11. Dolan, R. and H. Simon. 1996. Power Pricing: How Managing Price Transforms the Bottom Line. Free Press.Google Scholar
  12. Duncan, R. 1972. “Characteristics of Organizational Environments and Perceived Environmental Uncertainty.” Administrative Science Quarterly 17 (3): 313–27.CrossRefGoogle Scholar
  13. Fiol, C., & O’Connor, E. 2003. “Waking up! Mindfulness in the face of bandwagons.” The Academy of Management Review 28 (1): 54–70.Google Scholar
  14. Forbis, J. and N. Mehta. 1981, “Value-Based Strategies for Industrial Products.” Business Horizons 24 (3): 32–42.CrossRefGoogle Scholar
  15. Glaser, B. and A. Strauss. 1977. The Discovery of Grounded Theory: Strategies for Qualitative Research. Aldine.Google Scholar
  16. Green, S. and T. Taber. 1978. “Stucturing Experiential Learning Through Experimentation.” The Academy of Management Review 3(4):889–95.Google Scholar
  17. Gully, S., Incalcaterra, K., Joshi, A., & Beauien, J. M. 2002.“A Meta-Analysis of Team-Efficacy, Potency, and Performance: Interdependence and Level of Analysis as Moderators of Observed Relationships.” Journal of Applied Psychology 87 (5): 819–832.CrossRefGoogle Scholar
  18. Hacker, S., & Roberts, T. 2003. Transformational Leadership: Creating Organizations of Meaning, ASQ Quality Press.Google Scholar
  19. Hatfield, E., Cacioppo, J., & Rapson, R. L. 1994. Emotional Contagion. Cambridge Univiversity Press.Google Scholar
  20. Hinterhuber, A. 2004. “Towards Value-Based Pricing: An Integrative Framework for Decision Making.” Industrial Marketing Management 33 (8): 765–78.CrossRefGoogle Scholar
  21. Hinterhuber, A. 2008. “Value Delivery and Value-Based Pricing in Industrial Markets.” Advances in Business Marketing and Purchasing 14: 381–448.CrossRefGoogle Scholar
  22. Hoover, J., & Valenti, A. 2005. Unleashing Leadership: Aligning What People Do Best With What Organizations Need Most. Career Press Inc.Google Scholar
  23. Howell, J., Shea, C., & Higgins, C. A., 2005. “Champions of Product Innovations: Defining, Developing, and Validating a Measure of Champion Behavior.” Journal of Business Venturing 20 (5): 641–661.CrossRefGoogle Scholar
  24. Ingenbleek, P. 2007. “Value-Informed Pricing in Its Organizational Context: Literature Review, Conceptual Framework, and Directions for Future Research.” Journal of Product & Brand Management 16 (7): 441–58.CrossRefGoogle Scholar
  25. Kanter, R. 2006. Confidence: How winning Streaks and Losing Streaks Begin and End. Three Rivers Press.Google Scholar
  26. Kolb, D. 1984. Experiential Learning. Englewood Cliffs, NJ: Prentice-Hall.Google Scholar
  27. Langer, E. 1997. The Power of Mindful Learning. Reading, MA: Addison-Wesley.Google Scholar
  28. Levinthal, D., & Rerup, C. 2006. “Crossing an Apparent Chasm: Bridging Mindful and Less-Mindful Perspectives on Organizational Learning.” Organization Science 17 (4): 502.Google Scholar
  29. Malhotra, N. K. 1996. “The Impact of the Academy of Marketing Science on Marketing Scholarship: An Analysis of the Research Published in JAMS.” Journal of the Academy of Marketing Science 24 (4): 291.Google Scholar
  30. Maxwell, J. 2005. Qualitative Research Design: An Interactive Approach, (Vol. 42). Thousand Oaks, CA: Sage Publications, Inc.Google Scholar
  31. Mezirow, J. 1997. “Transformative Learning: Theory to Practice.” New Directions for Adult and Continuing Education 1997(74): 5–12.CrossRefGoogle Scholar
  32. Mezirow, J. 2000. Learning to Think Like an Adult. Learning as Transformation: Critical Perspectives on a Theory in Progress: 3–33.Google Scholar
  33. Mezirow, J. and M. Welton. 1995. In Defense of the Lifeworld. State University of New York Press New York.Google Scholar
  34. Nadler, D., & Nadler, M. 1997. Champions of Change: How CEOs and Their Companies are Mastering the Skills of Radical Change. San Francisco, CA: Jossey-Bass.Google Scholar
  35. Nadler, D., & Tushman, M. 1990. “Beyond the Charismatic Leader and Organizational Change.” California Management Review: 77–97.Google Scholar
  36. Nagle, T. and R. Holden. 2002. The Strategy and Tactics of Pricing: A Guide to Profitable Decision Making. New Jersey: Prentice Hall.Google Scholar
  37. Noble, P. and T. Gruca. 1999a. “Response to the Comments on Industrial Pricing: Theory and Managerial Practice.” Marketing Science 18 (3): 458.Google Scholar
  38. Noble, P. and T. Gruca. 1999b. “Industrial Pricing: Theory and Managerial Practice.” Marketing Science 18 (3): 435–454.Google Scholar
  39. Pfeffer, J. andR. Sutton. 2006. “Evidence-Based Management.” Harvard Business Review 84 (1): 62.Google Scholar
  40. Shamir, B., House, R. J., & Arthur, M. B. 1993. “The Motivational Effects of Charismatic Leadership: A Self-Concept Based Theory.” Organization Science 4 (4): 577–594.CrossRefGoogle Scholar
  41. Slater, S. 1997. “Developing a Customer Value-Based Theory of the Firm.” Journal of the Academy of Marketing Science 25 (2): 162–67.CrossRefGoogle Scholar
  42. Stein, E. 1995. “Organization Memory: Review of Concepts and Recommendations for Management.” International Journal of Information Management 15 (1): 17–32.CrossRefGoogle Scholar
  43. Szulanski, G. 1996. “Exploring Internal Stickiness: Impediments to the Transfer of Best Practice Within the Firm.” Strategic Management Journal 17: 27–43.CrossRefGoogle Scholar
  44. Tasa, K., Taggar, S., & Seijts, G. H. 2007. “The Development of Collective Efficacy in Teams: A Multilevel and Longitudinal Perspective.“ Journal of Applied Psychology 92 (1): 17–27.CrossRefGoogle Scholar
  45. Taylor, E. 2007. “An Update of Transformative Learning Theory: A Critical Review of the Empirical Research (1999– 2005).” International Journal of Lifelong Education 26 (2): 173–91.CrossRefGoogle Scholar
  46. Thomke, S. 2003. Experimentation Matters. Boston: Harvard Business School Press.Google Scholar
  47. Thompson, M. 2009. The Organizational Champion: How to Develop Passionate Change Agents at Every Level. McGraw Hill Professional.Google Scholar
  48. Wang, Y., & Huang, T. 2009. “The Relationship of Transformational Leadership with Group Cohesiveness and Emotional Intelligence.” Social Behavior and Personality: An International Journal 37 (3): 379–392.CrossRefGoogle Scholar
  49. Weick, K. and K. Sutcliffe. 2007. Managing the Unexpected: Resilient Performance in an Age of Uncertainty. Jossey-Bass.Google Scholar
  50. Weick, K. E., Sutcliffe, K., & Obstfeld, D. 1999. “Organizing for High Reliability: Processes of Collective Mindfulness.” Research in Organizational Behavior 21: 81–123.Google Scholar

Copyright information

© Academy of Marketing Science 2015

Authors and Affiliations

  • Stephan Liozu
    • 1
  • Dick Boland
    • 1
  • Andreas Hinterbuber
    • 1
  • Sheri Perelli
    • 1
  1. 1.HoustonUSA

Personalised recommendations