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Learning to discover value: Value-based pricing and selling capabilities for services and solutions

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  • Raja, Jawwad Z.
  • Frandsen, Thomas
  • Kowalkowski, Christian
  • Jarmatz, Martin

Abstract

Many manufacturers invest in advanced services and solutions to achieve superior customer value; however, research has only begun to examine capabilities for value-based pricing (VBP) and value-based selling (VBS) in relation to such offerings. This article explores (1) which capabilities firms seek to develop for VBP and VBS of industrial services and solutions and (2) how learning influences the development of these capabilities. An in-depth exploratory study of two global market leaders in their respective industries includes interviews with 66 respondents from the firms, as well as 12 interviews with customer and supplier informants, which reveal important capabilities for VBP and VBS. Higher-level learning supports value discovery, through dialogue with customers over time; this value in turn forms the basis for VBP and VBS. Higher-level learning capabilities also facilitate the adaptation and replication of the developed pricing and selling capabilities in various contexts.

Suggested Citation

  • Raja, Jawwad Z. & Frandsen, Thomas & Kowalkowski, Christian & Jarmatz, Martin, 2020. "Learning to discover value: Value-based pricing and selling capabilities for services and solutions," Journal of Business Research, Elsevier, vol. 114(C), pages 142-159.
    • Handle: RePEc:eee:jbrese:v:114:y:2020:i:c:p:142-159
    DOI: 10.1016/j.jbusres.2020.03.026
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