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How to Organize Pricing? Vertical Delegation and Horizontal Dispersion of Pricing Authority
Although pricing is one of the strongest drivers of profitability, little empirical research has examined how a firm should organize pricing internally. This research draws on the information-processing view of organizational design to conceptualize a framework of how firms organize their pricing authority both within the sales function and across the sales, marketing, and finance functions. The authors find a nonlinear, inverted U-shaped relationship between the vertical delegation of pricing authority and profitability as well as a positive relationship between the horizontal dispersion of pricing authority across sales, marketing, and finance and profitability. Another key finding is a positive interaction between vertical delegation and horizontal dispersion, indicating that firms need to jointly design vertical delegation and horizontal dispersion. In addition, the results identify price-related market dynamism as a moderator of the horizontal dispersion of the pricing authority?profitability relationship and emphasis on margin-based incentives as a moderator of vertical delegation of the pricing authority?profitability relationship. The authors also analyze the relationship between the organizational design of pricing authority and sales growth. Printed Journal
Ketersediaan
| Call Number | Location | Available |
|---|---|---|
| JM7605 | PSB lt.dasar - Pascasarjana | 1 |
| Penerbit | Chicago, IL: American Marketing Association 2012 |
|---|---|
| Edisi | Vol. 76, No. 5, September 2012 |
| Subjek | Business Pricing Sales management to Sales force Business marketing pricing authority |
| ISBN/ISSN | 0022-2429 |
| Klasifikasi | NONE |
| Deskripsi Fisik | 21 p. |
| Info Detail Spesifik | Journal of Marketing |
| Other Version/Related | Tidak tersedia versi lain |
| Lampiran Berkas |