Factors explaining a cost-based pricing essence

2019 ◽  
Vol 34 (8) ◽  
pp. 1850-1865
Author(s):  
Juliana Ventura Amaral ◽  
Reinaldo Guerreiro
Keyword(s):  
Design Methodology ◽  
Empirical Studies ◽  
Pricing Strategy ◽  
Company Size ◽  
Price Setting ◽  
Marketing Theory ◽  
Content Type ◽  
Industrial Companies ◽  
Five Factors ◽  
The Cost

Purpose Empirical studies have found that cost-based pricing remains dominant in pricing practice and suggest that practice conflicts with marketing theory, which recommends value-based prices. However, empirical studies have yet to examine whether cost-plus formulas represent the pricing approach or essence. Design/methodology/approach This study aims to address the factors that explain price setting whereby the cost-plus formula is not just the pricing approach but also the pricing essence. This examination is grounded in a survey conducted on 380 Brazilian industrial companies. Findings The results show that, for price-makers, the cost-based pricing essence is positively associated with four factors (two obstacles to deploying value-based pricing, company size and differentiation), but it is negatively related to one factor (premium pricing strategy). For price-takers, the cost-based pricing essence is positively associated with four factors (two obstacles to deploying value-based pricing, coercive isomorphism and use of full costs), but it is negatively related to five factors (one obstacle to deploying value-based pricing, company size, competitors’ ability to copy, normative isomorphism and experience). Originality/value The key contribution of this paper is demonstrating that cost-plus formulas do not go against the incorporation of competitors and value information. This study reveals that it is possible to set prices based on either value or competitors’ prices while simultaneously preserving the simplicity of the cost-plus formulas. Via the margin, firms may connect costs to information about competition and value. The authors also demonstrate the drawbacks of not segregating companies into price-makers and price-takers and an excessive focus on the pricing approach at the expense of pricing essence.

Retailer-reseller embeddedness and price-setting in the informal economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Uchenna Uzo
Keyword(s):  
Informal Economy ◽  
Design Methodology ◽  
Product Category ◽  
Pricing Strategy ◽  
Unique Contribution ◽  
Price Setting ◽  
Content Type ◽  
Informal Economies ◽  
Relational Embeddedness ◽  
Business To Business

Purpose This study aims to investigate how and why retailers and resellers in sample firms of the informal economy set prices and the performance implications for the firm’s pricing efforts. Design/methodology/approach The author generated their insights through an inductive qualitative study of four organizations operating within the informal economy in the Nigerian retailing sector. Findings The study found that some organizations within the informal economy set prices in different ways i.e. negotiated pricing and fixed pricing. The contracting criteria between the retailers and resellers determine the pricing strategy. Contractual terms based on relational ties between both facilitate negotiated price-setting, while contractual terms based on non-relational ties promote fixed pricing. The type of price-setting arrangement of the sampled retailer relates to the organization’s performance within its industry. Particularly, the study found that retailers that adopted negotiated pricing performed above the industry average for their product category. In contrast, the retailers that adopted fixed pricing performed below the industry average for their product category. Originality/value As far as the author knows, this is the first study to investigate pricing methods within the informal economy. This is also the first known study to investigate price-setting arrangements between retailers and resellers within the informal economy. Another unique contribution of this paper is that it is the first study that focuses on pricing interactions among business-to-business firms within the informal economy. The study contributes to the work on relational embeddedness, relational contracting and informal economies.

scholarly journals The social marketing theory-based (SMT) approach for designing interventions

2016 ◽  
Vol 6 (1) ◽  
pp. 18-40 ◽  
Author(s):  
Shamini Manikam ◽  
Rebekah Russell-Bennett
Keyword(s):  
Social Marketing ◽  
Design Methodology ◽  
Marketing Theory ◽  
Content Type ◽  
Step Process ◽  
The Social ◽  
Conceptual Paper ◽  
Marketing Intervention ◽  
Practical Implications ◽  
Social Marketing Theory

Purpose – Despite the importance of theory as a driving framework, many social marketers either fail to explicitly use theory as the basis of designing social marketing interventions or default to familiar theories which may not accurately reflect the nature of the behavioural issue. The purpose of this paper is therefore to propose and demonstrate the social marketing theory (SMT)-based approach for designing social marketing interventions, campaigns or tools. Design/methodology/approach – This conceptual paper proposes a four-step process and illustrates this process by applying the SMT-based approach to the digital component of a social marketing intervention for preventing domestic violence. Findings – For effective social marketing interventions, the underpinning theory must reflect consumer insights and key behavioural drivers and be used explicitly in the design process. Practical implications – Social marketing practitioners do not always understand how to use theory in the design of interventions, campaigns or tools, and scholars do not always understand how to translate theories into practice. This paper outlines a process and illustrates how theory can be selected and applied. Originality/value – This paper proposes a process for theory selection and use in a social marketing context.

Wroe Alderson, IMP and the evolution of theory

IMP Journal ◽  
2016 ◽  
Vol 10 (3) ◽  
pp. 390-408 ◽  
Author(s):  
Lars-Erik Gadde ◽  
Kajsa Hulthén
Keyword(s):  
Design Methodology ◽  
Systems Approach ◽  
Marketing Theory ◽  
Research Attention ◽  
Broad Perspective ◽  
Content Type ◽  
Research Fields ◽  
Theoretical Structure ◽  
Specific Objective ◽  
Scientific Fields

Purpose The purpose of this paper is to analyse how theories evolve within scientific fields: why they receive attention and why they eventually become less attractive. Design/methodology/approach The paper is based on a literature review and focusses on the theoretical structure developed by Wroe Alderson. His contributions were highly appreciated and generally considered as “the” marketing theory. However, in few years his broad perspective was more or less neglected within the field where it was developed. At the same time, Alderson’s basic thinking was adopted by the evolving IMP approach. The specific objective of the study is to analyse why researchers in marketing abandoned Alderson, while IMP adopted many of his ideas. Findings The paper illustrates significant aspects of the evolution of theories. First, the paper shows how well-established conceptualisations, like Alderson’s total systems approach, may lose impact when the focus of research shifts. Alderson’s holistic framing was found too broad and all-encompassing to be useful when research attention was directed to specific aspects of marketing management and the socio-behavioural approach to distribution. Second, the paper shows in what respect IMP found support in concepts and models presented by Alderson in the challenging of fragmented mainstream framings of the business landscape. Originality/value This paper relates the rise and fall of Alderson’s concepts and frameworks to the evolution of theories of other schools-of-thought. Furthermore, the study shows how Alderson’s ideas were adapted to other research fields than where it was originally developed.

ISO 9001: a vaccine for time of crisis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ronny Alexander Zayas-Mateo ◽  
Ángel Rafael Martínez-Lorente
Keyword(s):  
Economic Crisis ◽  
Design Methodology ◽  
Iso 9001 ◽  
New Approach ◽  
Content Type ◽  
Operating Income ◽  
Industrial Companies ◽  
The World

Purpose ISO 9001 is applied by hundreds of thousands of companies throughout the world. For this reason, its effect on company results has been extensively studied. However, the results of those studies are inconclusive and sometimes contradictory. More in-depth research, with a new approach, is therefore necessary. The purpose of this paper is to analyse whether ISO 9001-certified companies suffered the effects of the financial and economic crisis of 2007–2008 to a lesser degree than non-certified ones. Design/methodology/approach A set of 179 companies certified by ISO 9001:2008 and 154 non-certified ones were analysed, as well as the accounting figures for net sales and operating income (EBIT: earnings before interest and taxes) from 2004 to 2012. Findings Companies from the industry and services sectors showed different results. Certified industrial companies achieved better outcomes than their non-certified counterparts. However, the deviations in outcomes were not significant for services companies. Research limitations/implications One limitation of this study is that companies’ official results are not always their true results. Another limitation is that having to do with the criteria followed to suppress extreme cases, which is always subjective. Furthermore, the implications of the results could be of use for those managers who are responsible for implementing ISO 9001 and for deciding whether obtaining the ISO 9001 certification would be beneficial to their companies. Originality/value This study constitutes a new approach for the assessment of the benefits of the ISO 9001 certification.

How would you like your Turkish coffee? Tourist experiences of Turkish coffee houses in Istanbul

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Serkan Yiğit ◽  
Nilüfer Şahin Perçin
Keyword(s):  
Design Methodology ◽  
Qualitative Case Study ◽  
Learning Experience ◽  
Empirical Studies ◽  
Value Added ◽  
Case Study Method ◽  
Culture Learning ◽  
Content Type ◽  
Place Satisfaction

Purpose The purpose of this study is to examine and understand the experiences of tourists in the Turkish coffee houses in Istanbul, Turkey. Design/methodology/approach In this study, a qualitative case study method was used to analyze tourists’ comments with user-generated content technique by analyzing tourists’ comments. The data used in the study was collected through TripAdvisor, which is considered one of the most famous websites with tourist reviews and comments, between 20 May and 10 June 2020 from tourists’ reviews (n:219). Findings The findings show that Turkish coffee house experiences are heterogeneous based on the dimensions of coffee characteristics, place, satisfaction, recommendation and revisit intention, value/price and value-added experience. Moreover, value-added experience includes some sub-themes such as a memorable experience, authentic experience and culture learning experience. Originality/value There are some studies on Turkish coffee and Turkish coffee culture in the literature, but there have been no empirical studies investigating the Turkish coffee house experiences of tourists. For this reason, this study aims to examine and understand the experiences of tourists in Turkish coffee houses. Therefore, it is believed that this study will fill the current gap in the literature on tourists’ experiences of Turkish coffee houses.

Autopilot design for an aircraft by using Luenberger observer design

2018 ◽  
Vol 90 (5) ◽  
pp. 858-868 ◽  
Author(s):  
Muhammad Taimoor ◽  
Li Aijun ◽  
Rooh ul Amin ◽  
Hongshi Lu
Keyword(s):  
Design Methodology ◽  
Research Work ◽  
Linear Quadratic Regulator ◽  
Observer Design ◽  
Linear Quadratic ◽  
Content Type ◽  
Luenberger Observer ◽  
Level Flight ◽  
Aerial Vehicle ◽  
The Cost

Purpose The purpose of this paper is to design linear quadratic regulator (LQR) based Luenberger observer for the estimation of unknown states of aircraft. Design/methodology/approach In this paper, the LQR-based Luenberger observer is deliberated for autonomous level flight of unmanned aerial vehicle (UAV) which has been attained productively. Various modes like phugoid and roll modes are exploited for controlling the rates of UAV. The Luenberger observer is exploited for estimation of the mysterious states of the system. The rates of roll, yaw and pitch are used as an input to the observer, while the remaining states such as velocities and angles have been anticipated. The main advantage of using Luenberger observer was to reduce the cost of the system which has been achieved lucratively. The Luenberger observer proposes sturdiness at the rate of completion to conquest over the turmoil and insecurities to overcome the privileged recital. The FlightGear simulator is exploited for the endorsement of the recital of the Luenberger observer-based autopilot. The level flight has been subjugated lucratively and has been legitimated by exploiting the FlightGear simulator. The authenticated and the validated results are offered in this paper. Microsoft Visual Studio has been engaged as a medium between the MATLAB and FlightGear Simulator. Findings The suggested observer based on LQR ensures the lucrative approximation of the unknown states of the system as well as the successful level flight of the system. The Luenberger observer is used for approximation of states while LQR is used as controller. Originality/value In this research work, not only the estimation of unknown states of both longitudinal and lateral model is made but also the level flight is achieved by using those estimated states and the autopilot is validated by using the FlightGear, while in most of the research work only the estimation is made of only longitudinal or lateral model.

scholarly journals Resource integration for co-creation between marketing agencies and clients

2018 ◽  
Vol 52 (5/6) ◽  
pp. 1329-1354 ◽  
Author(s):  
Tim Hughes ◽  
Mario Vafeas ◽  
Toni Hilton
Keyword(s):  
Relationship Marketing ◽  
Design Methodology ◽  
Resource Integration ◽  
Marketing Theory ◽  
Content Type ◽  
Integration Approach ◽  
Resource Enhancement ◽  
Operant Resources ◽  
Business To Business ◽  
Practical Implications

Purpose Resource integration is a central idea within service-dominant logic (S-D logic), but there has been little scholarly research on this aspect of theory. This paper aims to explore resource integration between marketing agencies and their clients. Design/methodology/approach In total, nine case studies have been developed using a dyadic approach of interviewing clients and members of their agency teams. This is followed-up with presentations and workshops with over 200 practitioners who validated the findings and added new perspectives. Findings The key operant resources in the client/agency context have been identified. The ways the operant resources of the actors developed during the course of resource integration, building potential resources for future co-creation are shown. The differing perspectives of the actors to each other’s contribution are highlighted. Research limitations/implications This study suggests that resource enhancement and development, as a result of integration, is important. For agency/client research, resource integration and development brings new perspectives complementing existing relationship approaches to research. The findings have implications for relationship marketing theory across business-to-business (B2B) contexts. Practical implications The findings suggest a resource integration approach that could be jointly addressed between agency and client in improving the way they work together. The discourse of co-creation suggests a way for them to talk about how to work together effectively. Suggestions are made for teaching. Originality/value This study develops the S-D logic theory through exploring resource enhancement and development in a B2B co-creation context. The dyadic nature of the research is novel in studying how marketing agencies and clients work together and new perspectives emerge from the approach.

scholarly journals Putting resilient sustainability into strategy decisions – case studies

2018 ◽  
Vol 56 (7) ◽  
pp. 1598-1612 ◽  
Author(s):  
Julie Winnard ◽  
Jacquetta Lee ◽  
David Skipp
Keyword(s):  
Case Studies ◽  
Real World ◽  
Design Methodology ◽  
Strategic Decision ◽  
New Approach ◽  
Content Type ◽  
Industrial Companies ◽  
Different Types ◽  
Strategic Decision Support ◽  
Practical Implications

Purpose The purpose of this paper is to report the results of testing a new approach to strategic sustainability and resilience – Sustainable Resilient Strategic Decision-Support (SuReSDS™). Design/methodology/approach The approach was developed and tested using action-research case studies at industrial companies. It successfully allowed the participants to capture different types of value affected by their choices, optimise each strategy’s resilience against different future scenarios and compare the results to find a “best” option. Findings SuReSDS™ enabled a novel integration of environmental and social sustainability into strategy by considering significant risks or opportunities for an enhanced group of stakeholders. It assisted users to identify and manage risks from different kinds of sustainability-related uncertainty by applying resilience techniques. Users incorporated insights into real-world strategies. Research limitations/implications Since the case studies and test organisations are limited in number, generalisation from the results is difficult and requires further research. Practical implications The approach enables companies to utilise in-house and external experts more effectively to develop sustainable and resilient strategies. Originality/value The research described develops theories linking sustainability and resilience for organisations, particularly for strategy, to provide a new consistent, rigorous and flexible approach for applying these theories. The approach has been tested successfully and benefited real-world strategy decisions.

Managing employees with chronic illness

2018 ◽  
Vol 26 (1) ◽  
pp. 7-10 ◽  
Author(s):  
Maninder Singh ◽  
P.S. James ◽  
Shirshendu Ganguli
Keyword(s):  
Chronic Illness ◽  
Human Resource ◽  
Design Methodology ◽  
Empirical Studies ◽  
Chronically Ill ◽  
Human Resource Managers ◽  
Future Directions ◽  
Content Type ◽  
Resource Managers ◽  
Practical Implications

Purpose The purpose of this paper is to identify future directions for human resource managers to provide work accommodations to chronically ill employees. Design/methodology/approach The authors researched empirical studies in management, occupational health journals, and reports on chronically ill employees. Findings The paper provides research-based practical insights for human resource practitioners to deal with the growing number of chronically ill employees. Practical implications The paper highlights solutions for human resource managers to create an inclusive workplace for employees with chronic illness. Originality/value The authors identified effective human resource and health practices for chronically ill employees, which would help to increase their productivity.

Tax aggressiveness and sustainable welfare: the roles of corruption and tax allocation inefficiency

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Astrid Rudyanto ◽  
Sidharta Utama ◽  
Dwi Martani ◽  
Desi Adhariani
Keyword(s):  
Public Choice ◽  
Design Methodology ◽  
Empirical Studies ◽  
Content Type ◽  
Tax Aggressiveness ◽  
Long Run ◽  
Sustainability Issue ◽  
Private Investments ◽  
Positive Effect ◽  
Practical Implications

Purpose This paper aims to investigate the roles of corruption and tax allocation inefficiency in moderating the effect of tax aggressiveness on sustainable welfare. Design/methodology/approach This research uses a fixed-effect multiple regression analysis for 55,438 firm-year observations covering 22 countries from 2007 to 2017. Findings For less (more) tax-aggressive observations, corruption and tax allocation inefficiency strengthen the negative (positive) effect of tax aggressiveness on sustainable welfare. The results are in line with public choice and functionalism theories that suggest that private investments can increase welfare when governments are dysfunctional. Practical implications This paper shows that the effect of tax aggressiveness on sustainable welfare depends on tax aggressiveness, corruption and tax allocation inefficiency. Social implications This paper implies that governments should reduce their corruption levels and increase tax allocation efficiency because private investments are ineffective in the long run. Originality/value Because of increasing awareness of sustainability issue, sustainable welfare is considered more relevant than traditional welfare. Hence, empirical studies on the effect of tax aggressiveness on sustainable welfare are crucial. This paper adds the literature by combining public choice and functionalism theories to investigate the moderating roles of corruption and tax allocation inefficiency in this issue.

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