- Elgar original reference
Edited by Craig C. Julian
Chapter 6: Pricing capabilities: design, development and validation of a scale and implications for export marketing
Within the marketing domain, pricing capabilities have received increased attention as drivers of firm performance (Dutta et al., 2003). To date, however, the literature has not explored antecedents and consequences of pricing capabilities on firm performance through the use of a quantitative survey. To address this deficit, we first conducted qualitative interviews with 44 managers in 15 US companies to study the organizational antecedents of pricing capabilities. Based on these interviews and a thorough literature search, we designed and tested a pricing-capabilities measurement scale to be used in three quantitative surveys, which we conducted between April and June 2011. In the first survey, we collected responses from 748 marketing, pricing, commercial and management professionals and leaders involved in managing pricing activities for their firms in order to measure the effect of five organizational characteristics on perceived firm performance. We then surveyed 507 commercial, sales and contract managers to identify the antecedents and consequences of organizational confidence in pricing. Finally, we surveyed 557 CEO and business owners to gauge the effect of championing behaviours of pricing on relative firm performance. For each study we operationalized the pricing-capabilities construct using all pretested and piloted items.
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