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The effect of value-based pricing strategies on the innovation performance of small and medium enterprises

Pippo, G.P. (2018) The effect of value-based pricing strategies on the innovation performance of small and medium enterprises.

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Abstract:The purpose of this paper is to study the effect of the degree of adoption of value-based pricing strategies (VBP) on the innovation performance of SMEs by comparing them to cost- (CBP) and competitor-based pricing (CoBP). The analysis has been carried out through the use of correlation coefficients and the gradients of the simple linear regression models presented throughout the paper. Additionally, scatterplots are used in order to control for the effect of control variables on the relationship. The results suggested that, although they have limited statistical validity due to the small sample size, VBP has a positive impact on the innovation performance. On the other hand, the findings indicated that competitor-based pricing strategies may have a negative or the least positive impact when adopted in SMEs compared to CBP and VBP. Furthermore, the secondary analysis produced some interesting results. Firstly, the finding suggested that the maximum positive impact that VBP strategies have on innovation performance is realized in medium firms. Moreover, the results indicated that small and new firms should rely on cost-based pricing strategies in order to have the greatest positive impact on their innovation performance.
Item Type:Essay (Bachelor)
Clients:
Unknown organization, Netherlands
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/75331
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