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Fundamental research on the implementation of value-based pricing in Dutch manufacturing SMEs

Gankema, Waria (2018) Fundamental research on the implementation of value-based pricing in Dutch manufacturing SMEs.

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Abstract:This research has the purpose of giving an overview of the barriers and conditions that play a role in SMEs decisions on the adoption of value-based pricing. According to theory, value-based pricing is a superior pricing strategy. Nevertheless, at SMEs using other less sophisticated pricing strategies is more common practice. The question, therefore, is what prevents SMEs from using value-based pricing, in other words what the barriers to the implementation are and which conditions would be necessary to simplify the implementation. For this purpose, a survey has been conducted at Dutch SMEs to analyze what pricing strategies they use and what benefits and complications they see regarding value-based pricing. It has been found that Dutch SMEs predominantly use cost-based pricing methods. They have overall limited understanding of what value-based pricing is and are subject to pressures from buyers to keep the prices as low as possible, which prevents them from using the pricing method. This research concludes that practitioners at SMEs might be more successful using other pricing strategies than value-based pricing. Further research can use the barriers and conditions defined to develop a framework for SMEs that guides them in finding the most effective pricing strategy for their company.
Item Type:Essay (Bachelor)
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/75415
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