Behavioral issues in price setting in business-to-business marketing: A framework for analysis

Gopalkrishnan R. Iyer, Sarah Hong Xiao, Arun Sharma, Michael Nicholson

Research output: Contribution to journalArticle

18 Scopus citations

Abstract

Business-to-business pricing research has often focused on developing rational and normative frameworks and models for pricing issues, strategies and tactics. However, there has been less attention given to behavioral models that help us understand the realities of pricing and how managers actually set prices. Specifically, there has been less attention given to the various individual and group influences on the price setting process. We apply insights from a steadily increasing body of literature on behavioral decision making to identify some relevant behavioral issues that may affect managerial price setting processes in business-to-business contexts. We conclude with some implications for theory building and practice and an agenda for future research.

Original languageEnglish (US)
Pages (from-to)6-16
Number of pages11
JournalIndustrial Marketing Management
Volume47
DOIs
StatePublished - May 1 2015

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Keywords

  • Behavioral bias in pricing
  • Business-to-business pricing
  • Industrial pricing decisions
  • Price setting

ASJC Scopus subject areas

  • Marketing

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