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Capturing the unique value of services: why pricing of services is different

Rob Docters (Robert G. Docters is a partner in the boutique strategy consultancy i2 Parners, LLP in New York (rob@i2partners.com).)
Mike Reopel (Michael R. Reopel is a senior officer in A.T. Kearney’s strategy practice, Cambridge, MA, USA (mike.reopel@atkearney.com).)
Jeanne‐Mey Sun (Jeanne‐Mey Sun is a Manager in A.T. Kearney, Chicago, IL, USA (jeanne‐mey.sun@atkearney.com).)
Steve Tanny (Stephen M. Tanny is a Professor at the University of Toronto, Toronto, Ontario, Canada (tanny@math.utoronto.ca).)

Journal of Business Strategy

ISSN: 0275-6668

Article publication date: 1 April 2004

3648

Abstract

Much attention has been paid to the pricing of goods, but services now constitute almost half of the US economy and they have their own pricing requirements. Services differ from goods in that the choice of pricing structure is more fluid, as for example in determining the unit of charging. In addition, services tend to be more variable in quality because they are impacted by unique customer needs and environment. Thus, a framework for taking into account quality differences (risks) is integral to the price structure.

Keywords

Citation

Docters, R., Reopel, M., Sun, J. and Tanny, S. (2004), "Capturing the unique value of services: why pricing of services is different", Journal of Business Strategy, Vol. 25 No. 2, pp. 23-28. https://doi.org/10.1108/02756660410525371

Publisher

:

Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited

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