Most existing frameworks of pricing were developed in the context of consumer goods and, as such, they fail to explain how to price complex service offerings. In this chapter, the authors explain the characteristics of services that make services pricing different from goods. Relying on theory from both the general pricing literature and from services research, they develop a conceptual model of pricing of services. This framework incorporates critical pricing elements from both the consumer's and the service provider's perspective. The authors also explain how consumers form value perceptions in the context of service offerings and how such knowledge can be used for developing pricing strategies for various types of services. The chapter concludes with a discussion on measuring price sensitivity in service, competitive pricing and areas for future research.
|Title of host publication
|Handbook of Pricing Research in Marketing
|Edward Elgar Publishing Ltd.
|Number of pages
|Published - Mar 31 2009
All Science Journal Classification (ASJC) codes
- General Social Sciences
- Economics, Econometrics and Finance(all)
- General Business, Management and Accounting