Why is a change of company pricing policy so hard to implement?

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van der Rest, Jean-Pierre, Roper, Angela ORCID: https://orcid.org/0000-0002-6942-8406 and Wang, Xuan Lorna ORCID: https://orcid.org/0000-0003-4710-3579 (2018) Why is a change of company pricing policy so hard to implement? International Journal of Hospitality Management, 69. pp. 30-40. ISSN 0278-4319

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Official URL: https://doi.org/10.1016/j.ijhm.2017.10.010

Abstract

This paper analyzes the process of changing a competition-oriented room rate pricing approach into a company-wide value-based pricing process from the perspective of the resource-based view. From a sample of 33 hotels in 16 countries it evaluates data from 55 open-ended interviews, documentation and archival records. Employing systems methodology the study illustrates that pricing is an intra/inter-organizational activity involving cross-disciplinary processes at various hierarchical levels. It finds that changing to value-based pricing involves a remarkable level of especially intangible resources. The study identifies these resources and their impact, identifying how constraints and tensions influence the shift in pricing orientation. It suggests that pricing in a value-driven policy comprises a capability. Without this capability interpersonal realities and goal conflicts, most prominently between sales and revenue, are found to impose major effects on the alignment of functional levels, the change in pricing processes, and the degree to which these are really value-driven.

Item Type:	Article
Identifier:	10.1016/j.ijhm.2017.10.010
Additional Information:	© 2017. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/
Keywords:	Resource-based view; Capability; Value-based; Pricing; Sales; Revenue management
Subjects:	Business and finance
Depositing User:	Angela Roper
Date Deposited:	25 Oct 2017 11:07
Last Modified:	06 Feb 2024 15:54
URI:	https://repository.uwl.ac.uk/id/eprint/4069

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Why is a change of company pricing policy so hard to implement?

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