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Does Pricing Capability Affect Product Market Value Appropriation: A Case-Study in the European Packaging Industry

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Author

Summary, in English

This case-study of pricing capability in the European packaging industry examines the process and mechanisms whereby pricing capability affects product market value appropriation. Pricing related challenges illustrated by the five cases included in the study ranged from keeping track of and setting consistent prices for up to 5000 different products spread across almost a thousand different customers, gaining relevant market and product related information in novel and highly idiosyncratic pricing situations, and controlling the personal discretion of employees involved in pricing decisions. The results show that firms commit to complex configurations of assets, routines, activities, and pricing policies, which enable value appropriation through the ability to discriminate prices, and leverage firm-specific demand and cost conditions.

Publishing year

2010

Language

English

Document type

Conference paper

Topic

  • Economics and Business

Conference name

Strategic Management Society Annual Conference, 2010

Conference date

2010-09-12 - 2010-09-15

Conference place

Rome, Italy

Status

Unpublished