Making qualitative decisions from quantitative cues: Understanding the customers’ willingness to pay

It is clear that pricing value is a complex process. Although there are numerous studies on value research with respect to its definition, constructs and theoretical foundations, pricing value can be addressed from multiple perspectives. Value-based research has revealed a number of value frameworks...

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Bibliographic Details
Published inJournal of revenue and pricing management Vol. 11; no. 5; pp. 562 - 566
Main Author Yip, Nick K T
Format Journal Article
LanguageEnglish
Published London Palgrave Macmillan UK 01.09.2012
Palgrave Macmillan
Subjects
Business and Management
Consumer behavior
Consumers
Costs
Customer services
Decision making
Economics
Futures
Marketing
Revenue management
Studies
Value added
Willingness to pay
United Kingdom > UK
willingness to pay
exchange value
value-based pricing
value
value-in-use
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Summary:It is clear that pricing value is a complex process. Although there are numerous studies on value research with respect to its definition, constructs and theoretical foundations, pricing value can be addressed from multiple perspectives. Value-based research has revealed a number of value frameworks surrounding the concept of customer value and how it should be captured and measured in order to implement optimum pricing strategies. One method discussed extensively in pricing research is attempting to measure the customer's ‘willingness to pay’. In that respect, firms might be able to discover, qualitatively, behavioural patterns of individual consumers from the established quantitative cues and this might inform their long-term pricing strategies.
ISSN:1476-6930
1477-657X
DOI:10.1057/rpm.2012.18