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

van der Rest, Jean-Pierre, Roper, Angela and Wang, Xuan Lorna (2017) Why is a change of company pricing policy so hard to implement? International Journal of Hospitality Management, 69. pp. 30-40.

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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
Divisions : Faculty of Arts and Social Sciences > School of Hospitality and Tourism Management
Authors :
NameEmailORCID
van der Rest, Jean-PierreUNSPECIFIEDUNSPECIFIED
Roper, AngelaUNSPECIFIEDUNSPECIFIED
Wang, Xuan Lornalorna.wang@surrey.ac.ukUNSPECIFIED
Date : 23 October 2017
Identification Number : 10.1016/j.ijhm.2017.10.010
Copyright Disclaimer : © 2017 Elsevier Ltd. All rights reserved.
Uncontrolled Keywords : Resource-based view; Capability; Value-based; Pricing; Sales; Revenue management
Depositing User : Clive Harris
Date Deposited : 21 Dec 2017 10:42
Last Modified : 08 Jan 2018 09:53
URI: http://epubs.surrey.ac.uk/id/eprint/845498

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