Pricing Services and Revenue Management

by Jochen Wirtz

Overview

Creating a viable service requires a business model that allows for the costs of creating and delivering the service, in addition to a margin for profits, to be recovered through realistic pricing and revenue management strategies. However, the pricing of services is complicated. Pricing Services and Revenue Management explains how to set an effective pricing and revenue management strategy that fulfils the promise of the value proposition so that a value exchange takes place. This book is the fourth volume in the Winning in Service Markets Series by services marketing expert Jochen Wirtz. Scientifically grounded, accessible and practical, the Winning in Service Markets Series bridges the gap between cutting-edge academic research and industry practitioners, and features best practices and latest trends on services marketing and management from around the world.

Product Details

ISBN-13:	9781944659202
Publisher:	World Scientific Publishing Company, Incorporated
Publication date:	08/25/2017
Sold by:	Barnes & Noble
Format:	eBook
Pages:	60
File size:	4 MB

Table of Contents

Dedication 3

Preface 4

Introduction 7

Effective Pricing is Central to Financial Success 9

Objectives for Establishing Prices

Pricing Strategy Stands on Three Foundations 13

Cost-based Pricing

Value-based Pricing

Reducing Related Monetary and Non-monetary Costs

Competition-based Pricing

Revenue Management: What It Is and How It Works 25

Reserving Capacity for High-yield Customers

How can we Measure the Effectiveness of a Firm's Revenue Management?

How does Competitor's Pricing Affect Revenue Management?

Price Elasticity

Designing Rate Fences

Fairness and Ethical Concerns in Service Pricing 36

Service Pricing is Complex

Piling on the Fees

Designing Fairness into Revenue Management

Putting Service Pricing Into Practice 45

How Much to Charge?

What Should be the Specified Basis for Pricing?

Who Should Collect Payment and Where Should Payment be Made?

When Should Payment be Made?

How Should Payment be Made?

How Should Prices be Communicated to the Target Markets?

Summary 56

Endnotes 60

About the Author 64

Acknowledgments 65