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The effect of external obstacles on the pricing strategies of new products at Dutch and German Business-to-Business SME's

Kilinç, Burak (2019) The effect of external obstacles on the pricing strategies of new products at Dutch and German Business-to-Business SME's.

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Abstract:To study how environmental dynamics, affect pricing strategies, mainly Value-based pricing in Dutch and German Business-to-Business small and middle enterprises, a research has been conducted applying a survey assessment. Basically, four environmental dynamics constructs have been distinguished and applied in the assessment. These four constructs are identified as: Instability, Growth, Velocity and Turbulence. Likewise, four hypotheses have been involving these constructs separately against the, current favourable pricing strategy: Value-based pricing. However, these environmental dynamics might not be the ideal circumstances in applying a Value-based pricing approach. As the study interprets the data output, it becomes clear that, out of the four assessed environmental dynamics, Growth has an unexpected large positive effect on Value-based pricing. Growth has been perceived as increasing resource inflows in the market and has been characterized as an environment that is continually expanding in opportunities with the need for bulky but risky investments. Based on the level of investment, Growth might have a positive influence on the Value-based pricing strategy. The article’s key contribution is to understand how these environmental obstacles affect the pricing strategies, with its focus on value-based pricing approach.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:43 environmental science, 83 economics, 85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/77947
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