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The rise of the pricing function: origins and perspectives

The rise of the pricing function: origins and perspectives Purpose – The purpose of this paper is to describe the origins and development of the pricing function and to explore how companies are organizing for price management. Since the end of the 1990s, many companies have started initiatives towards price optimization, and moreover, have invested in pricing capabilities. The authors explain how the pricing function has evolved since then, and describe the roles and responsibilities assigned to pricing managers. Design/methodology/approach – The authors conducted an empirical qualitative research based on 28 interviews with pricing managers (analysts, directors, chief pricing officers) in large companies in France. A lexical analysis has been conducted in order to develop a typology of pricing orientations and a description of the different ways of performing the function within the company. Findings – The results describe three main stages (commodity, control, and value) corresponding to different levels of maturity of the pricing function. Many managers feel they lack opportunities to “push the price button”; this research shows that a progressive and systematic deployment of tools and capabilities allows companies to gain more pricing power. Originality/value – The authors describe three main orientations in organizing for pricing management, as degrees of maturity of the pricing function. Practitioners will find information on how to deploy the function in their organization useful given the variety of industries and pricing contexts studied. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Product & Brand Management Emerald Publishing

The rise of the pricing function: origins and perspectives

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References (27)

Publisher
Emerald Publishing
Copyright
Copyright © 2010 Emerald Group Publishing Limited. All rights reserved.
ISSN
1061-0421
DOI
10.1108/10610421011086883
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to describe the origins and development of the pricing function and to explore how companies are organizing for price management. Since the end of the 1990s, many companies have started initiatives towards price optimization, and moreover, have invested in pricing capabilities. The authors explain how the pricing function has evolved since then, and describe the roles and responsibilities assigned to pricing managers. Design/methodology/approach – The authors conducted an empirical qualitative research based on 28 interviews with pricing managers (analysts, directors, chief pricing officers) in large companies in France. A lexical analysis has been conducted in order to develop a typology of pricing orientations and a description of the different ways of performing the function within the company. Findings – The results describe three main stages (commodity, control, and value) corresponding to different levels of maturity of the pricing function. Many managers feel they lack opportunities to “push the price button”; this research shows that a progressive and systematic deployment of tools and capabilities allows companies to gain more pricing power. Originality/value – The authors describe three main orientations in organizing for pricing management, as degrees of maturity of the pricing function. Practitioners will find information on how to deploy the function in their organization useful given the variety of industries and pricing contexts studied.

Journal

Journal of Product & Brand ManagementEmerald Publishing

Published: Nov 2, 2010

Keywords: Pricing; Resources; Corporate strategy; Large enterprises; France

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