The Performance Impact of the Organization of Pricing in B2B Firms

URL:	http://imu2.bwl.uni-mannheim.de/fileadmin/files/im...
Document Type:	Working paper
Year of publication:	2012
The title of a journal, publication series:	IMU Research Insights
Volume:	008
Place of publication:	Mannheim
Publishing house:	The Performance Impact of the Organization of Pricing in B2B Firms
Publication language:	English
Institution:	Business School > ABWL u. Marketing I (Homburg)
Subject:	650 Management
Abstract:	There are two issues when organizing pricing authority within the firm: The vertical delegation of tactical pricing authority to salespeople and the horizontal dispersion of strategic pricing authority across sales, marketing, and finance Higher horizontal dispersion of pricing authority increases both profitability and sales growth of B2B firms Higher vertical delegation of pricing authority drives sales growth, but comes with both benefits and costs in terms of profitability. Thus, medium levels of vertical delegation are optimal for B2B firms