Strategic benchmarking of service pricing based on the value added

Purpose – The purpose of this paper is to investigate opportunities to move benchmarking studies toward a strategic level. The authors benchmarked how service prices are defined based on the value added for the customer. Design/methodology/approach – A multi-case research investigated how manufacturers can increase their service revenues; how corporate reputation can be analyzed to enhance financial and market performance; how customer satisfaction and price acceptance are related; and how benchmark studies can move to a more strategic level based on a conjoint analysis of value and price. Findings – Price’s benchmarking studies must combine the customers’ value demands; the customer expectations associated to each value demand; the competitor prices; and the revenue alternatives that a supplier can explore (e.g. sale of new goods, services for new goods, services for non-new goods, and repair parts). The combination of these elements reveals several opportunities for revenue generation. This combination ...

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