Martin Fassnacht

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• Prof. Dr.
• Professor and Director of the Chair of Strategy and Marketing at WHU – Otto Beisheim School of Management

Purpose Vertical line extension is an attractive growth strategy that allows brands to address heterogeneous consumer needs and react to competitive pressure. The purpose of this paper is to systematically review and summarize vertical line extension research to derive general insights into vertical upward and downward line extension. Design/metho...

The concept of product stewardship emphasizes the responsibility of companies along the entire product life cycle. In this paper, we examine the company's difficulties in extending product stewardship downward their value chain to the consumption phase and explore potential measures to foster sustainable consumption behavior. For this purpose, we c...

Purpose While digital media changed the nature of communication in service contexts, often allowing customers to interact instantly with service providers, the implications and opportunities for managing service employees are widely unknown. This is surprising, given that service employees are an important determinant of service firms’ success. Thi...

The paper shows how premiumization allows firms to achieve higher price levels by adding value to a brand or a brand portfolio. The article provides a conceptual framework of strategic options for premiumization. Using various practical examples, we characterize and evaluate these different premiumization alternatives. Thus, the article is of funda...

Герман Симон – основатель и председатель компании Simon-Kucher and Partners, мирового лидера в сфере ценового консалтинга. Мартин Фасснахт – профессор и руководитель WHU, Школы менеджмента Отто Байсхайма в Дюссельдорфе. Эта книга – совместный труд двух авторов, рассказывающий о главных принципах ценообразования в современном мире. Из книги вы узна...

Retail customers increasingly use brick-and-mortar retailers as showrooms to try products and gather information, while then purchasing online at a lower price. This paper addresses how showroomers react to several low-investment tactics aimed at combating the effects of showrooming, as well as comparing showroomers and non-showroomers on these iss...

"Pierwsze wydanie podręcznika ukazało się w 1982 roku. To w nim po raz pierwszy użyto pojęcia „zarządzanie cenami”. Wcześniej mówiono albo o teorii cen – w podejściu akademicko-teoretycznym, nauczanym przede wszystkim przez ekonomistów, albo o polityce cenowej – w podejściu bardziej zorientowanym na praktykę. Pojęcie „zarządzanie cenami” miało być...

Price management has been a field of sporadic innovation. Auctions, nonlinear pricing, and bundling precede our current era. Innovations in pricing used to be rare and slow to spread, but we have seen rapid, widespread pricing innovations, thanks in large part to the Internet. Measurement technology (allowing precise price metrics), more powerful c...

One-dimensional pricing, discussed in the preceding chapter, is rather the exception than the rule in economic reality. Companies typically charge different prices for the same product depending on target group, region, time, or purchase volume. This kind of price differentiation requires the setting of multiple prices or price parameters. Almost a...

In the previous chapters, we have dealt with price strategy, analysis, and decision-making. But the mission is not accomplished. Price decisions need to be implemented, and this in turn requires that processes and responsibilities are clearly defined. In the first part of this chapter, we will examine questions regarding setup and process organizat...

Value-to-customer, costs, and competing offers are the economic determinants of price. This chapter will examine these three determinants and their interrelationships. Viewed in isolation, costs only represent the lower limit for price. The most important determining factor for the price is value-to-customer, from which we derive customers’ willing...

In this fundamental chapter, we will identify price as the strongest driver of profit and explore the relevant aspects of price management. Despite its significance, price is often not well managed in practice. Sharp profit declines are not uncommon because of poor price management. The consequences of pricing are not fully understood for many reas...

In highly developed economies, services typically account for more than three quarters of the gross domestic product (GDP). Services have a range of special characteristics which are very important for price management. Price management for services has to cover a very broad spectrum, from the complex yield management systems used by airlines to th...

Price management for industrial goods involves numerous special aspects. Overall, it is characterized by a wide variety of price models and pricing approaches. Because of these special aspects, analysis demands a thorough understanding of the specific case. That includes the role of individual people as well as groups, the so-called buying centers....

Any company’s goal should be long-term—and not short-term—profit maximization. This goal is synonymous with the maximization of shareholder value. Up until now, we have not examined relationships across time periods. For long-term price optimization, it is necessary to take into account that the determinants of the optimal price can be dynamic—the...

The business strategy defines the framework for price management. This starts with articulating the set of goals the business is pursuing. In general, these goals have many dimensions and are often to some extent contradictory, so that it is necessary to prioritize the goals when setting prices. The price strategy of a company has an enormous influ...

In the previous chapters, we have looked at price decisions without taking the institutional or economic context into account. For example, we have proceeded as if there were no inflation or deflation. The reality is that such phenomena exist, and the question is whether and to what extent they influence the optimal price. Internationalization also...

This chapter addresses the special characteristics of retail price management. For many retailers, price is the most important and most effective competitive instrument. Price differences in retail have a greater impact on profit than they do for industrial goods or services because of the low profit margins. The priority for retailers is their pri...

This chapter deals with decision-making for one-dimensional prices. In other words, it involves setting a price for one product in one period. Rigid processes such as cost-plus or competition-oriented pricing, which consider only one factor, are in widespread use in practice, but they are not up to the challenges and complexities of price setting....

The psychology of price is supplementary to the perspectives of classical economics and thus contributes to a more comprehensive understanding of the effects of price. Economics and marketing are not solely based on the rational assumptions of homo oeconomicus, which form the basis of classical theory. Price management and its processes should not...

The most important aspect of price management for consumer goods is that manufacturers typically do not sell their products directly to the end consumers. Instead, retailers or other third parties are engaged as intermediaries. In order to set optimal prices, the manufacturers must take the behavior of the retailers into account in their price deci...

In this book, the world’s foremost experts on pricing integrate theoretical rigor and practical application to present a comprehensive resource that covers all areas of the field. This volume brings together quantitative and qualitative approaches and highlights the most current innovations in theory and practice. Going beyond the traditional cons...

Vertical upward line extension is an attractive opportunity for a brand to increase profitability and enhance its image, but has not yet been studied extensively. This paper develops a research model based on the specifics of upward extension derived from literature, expert interviews, and market analyses. Utilizing schema theory, we propose a posi...

One of the most important measures to stimulate individual performance is feedback, whose effectiveness highly depends on underlying feedback characteristics. Although an extensive body of research has stressed its importance, a conclusive overall picture on feedback characteristics effects is missing. However, synthesized knowledge is important wh...

Luxury brands are expected to deliver exceptional service and leave nothing to be desired for its customers. Traditionally, they have been leaders in creating personal customer-salesperson relationships. Nevertheless, today luxury brands record significant annual customer attrition. In order to attract and retain luxury clients, personal customer-s...

Purpose Consumer engagement has been designated as an approach to describing online interactions that more comprehensively reflects the nature of consumers’ interactive relationships in online brand communities. This paper aims to explore consumers’ brand community engagement in the context of Facebook brand pages. This research puts forth the hyp...

In diesem grundlegenden Kapitel wird der Preis als der stärkste Gewinntreiber identifiziert sowie auf relevante Aspekte des Preismanagements eingegangen. Trotz seiner hohen Bedeutung wird der Preis in der Praxis oft unzureichend verstanden, was nicht selten zu starken Gewinneinbußen führt. Als Ursachen für dieses mangelnde Verständnis lassen sich T...

Die Psychologie des Preises ergänzt die klassisch‐ökonomische Sichtweise und trägt damit zum umfassenderen Verständnis von Preiswirkungen bei. Wirtschaft und Marketing bestehen nicht nur aus den rationalen Annahmen zum homo oeconomicus, die der klassischen Theorie zugrunde liegen. Das Preismanagement und seine Teilprozesse sollten deswegen nicht au...

Das Ziel von Unternehmen soll die langfristige, nicht die kurzfristige Gewinnmaximierung sein. Diese Zielsetzung ist gleichbedeutend mit der Maximierung des Shareholder‐Value. Bisher haben wir von periodenübergreifenden Zusammenhängen abstrahiert. Für die langfristige Preisoptimierung kann es notwendig sein, alle Determinanten des optimalen Preises...

In den vorangehenden Kapiteln haben wir die Preisentscheidung als solche betrachtet und von institutionellen Rahmenbedingungen abstrahiert. Wir haben beispielsweise so getan, als gäbe es keine Steuern. In der Realität gibt es aber Steuern, und die Frage ist, ob und wie diese den optimalen Preis beeinflussen. Ebenso beobachten wir Phänomene wie Infl...

In den bisherigen Kapiteln haben wir uns mit Preisstrategien, ‐analysen und ‐entscheidungen befasst. Doch damit ist es nicht getan. Die Preisentscheidungen müssen auch umgesetzt werden. Dazu ist es notwendig, klare Verantwortlichkeiten zu definieren. Fragen der Aufbau‐ und Prozessorganisation im Preismanagement behandeln wir im ersten Teil dieses K...

In hoch entwickelten Volkswirtschaften stammen mehr als drei Viertel der Bruttoinlandsprodukte aus Dienstleistungen. Diese weisen eine Reihe von Eigenarten auf, die für das Preismanagement von großer Bedeutung sind. Preismanagement von Dienstleistungen umfasst eine sehr große Spannweite, die von komplexen Yield‐Managementsystemen bei Fluggesellscha...

Der Handel zeichnet sich beim Preismanagement durch zahlreiche Eigenarten aus. Diese sind Gegenstand des vorliegenden Kapitels. Dabei ist zu beachten, dass der Preis für viele Händler das wichtigste und wirksamste Wettbewerbsinstrument darstellt. Zudem schlagen Preisunterschiede wegen der geringen Gewinnspannen noch stärker als in der Industrie ode...

Es gab schon immer Innovationen im Preismanagement. Auktionen, nichtlineares Pricing oder Preisbündelung sind keine Erfindungen unserer Zeit. Aber solche Innovationen waren eher selten und breiteten sich nur langsam aus. Das hat sich in den letzten Jahrzehnten radikal geändert. Der wichtigste, gleichwohl keineswegs einzige Treiber ist dabei das Int...

Die Strategie des Unternehmens definiert den Rahmen für das Preismanagement. Den Ausgangspunkt bilden die Unternehmensziele. Diese sind in der Regel mehrdimensional und stehen oft in partiellem Widerspruch zueinander, so dass Abwägungen bei der Festlegung von Preisen erforderlich sind. Die Preisstrategie hat enormen Einfluss auf den Shareholder‐Val...

Kosten, Kundennutzen und Wettbewerbsangebote bilden die ökonomischen Bestimmungsgrößen des Preises. Diese drei Determinanten und ihre Zusammenhänge werden in diesem Kapitel behandelt. Alleine betrachtet bestimmen die Kosten lediglich die Preisuntergrenze. Die wichtigste Bestimmungsgröße des Preises ist der Kundennutzen, aus dem sich Zahlungsbereits...

Die wichtigste Besonderheit des Preismanagements für Konsumgüter besteht darin, dass die Hersteller ihre Produkte typischerweise nicht direkt an den Endverbraucher liefern, sondern Händler oder ähnliche Absatzmittler zwischenschalten. Um zu optimalen Preisen zu gelangen, müssen die Hersteller das Verhalten der Händler bei ihrer Preisentscheidung be...

Das Preismanagement für Industriegüter weist zahlreiche Besonderheiten auf. Insgesamt zeichnet sich der Industriegüterbereich durch eine große Vielfalt an Preismodellen und ‐ansätzen aus. Wir folgen in dem Kapitel dem Prozessgedanken mit Analyse, Entscheidung und Umsetzung. Wegen der vielen Besonderheiten ist im Rahmen der Analyse ein tiefgehendes...

Dieses Kapitel behandelt die Preisentscheidung für den Fall eindimensionaler Preise. Es geht also um die Preisfestlegung für ein Produkt in einer Periode. Einseitig‐starre Verfahren wie die Kosten‐Plus‐ und die wettbewerbsorientierte Preisbildung sind in der Praxis stark verbreitet, werden aber der Komplexität der Problemstellung nicht gerecht. Sim...

Die eindimensionale Preisbildung ist in der wirtschaftlichen Realität eher die Ausnahme. Unternehmen verlangen für das gleiche Produkt je nach Zielgruppe, Zeit, Region oder Abnahmemenge typischerweise unterschiedliche Preise. Eine solche Preisdifferenzierung erfordert die Bestimmung mehrerer Preise oder Preisparameter. Die weitaus meisten Unternehm...

This research explores the impact of channel-based price discrimination on key consumer reactions. Three experimental studies provide evidence that price differentiation with lower online prices is feasible. Results indicate the effects observed depend on the size of the price difference and differ between product categories. The studies provide ev...

Dieses Buch bietet ein umfassendes Verständnis von Pricing. Preismanagement wird dabei als Prozess verstanden, der in den vier Phasen Strategie, Analyse, Entscheidung und Umsetzung abläuft. In separaten Kapiteln wird auf branchenspezifische Besonderheiten des Preismanagements bei Konsum- und Industriegütern, Dienstleistungen und im Handel eingegang...

Purpose – Luxury goods manufacturers have long been hesitant to adopt the internet as a channel of distribution. A luxury brand’s concept of exclusiveness is seemingly incompatible with the ubiquitous accessibility provided by the mass medium internet. The purpose of this paper is to address the apparent contradiction by examining consumer response...

In line with other authors we believe that marketing is currently in a process of a profound paradigm shift. A lively discussion about a Service Dominant Logic (SDL) for Marketing has been launched by an article from Vargo/Lusch (2004) in the Journal of Marketing, which generated considerable attention. Since then several authors have contributed t...

Selling luxury goods has always been related to a personal one-to-one relationship between the customer and the salesperson (Cailleux, Mignot, & Kapferer, 2009). Offering products of high involvement, high quality and high prices, luxury brands further differentiate themselves from the mass-market through excellent service quality and personal rela...

Most of the top retail companies today operate both conventional retail stores and an online shop. Researchers as well as managers consider the issue how to price products across these two channels as one of the key challenges for multi-channel retailers. Based on an extensive literature review we synthesize evidence concerning the question whether...

Extending brands vertically to different price and quality levels is a popular strategy of brand managers to leverage the value of well-established brands. This strategy may increase sales but also risks diluting and cannibalizing one of the most valuable assets of a company – the parent brand. Extant research has found especially negative effects...

A favorable online brand experience is important for strengthening the consumers’ brand relationship in a digital world. However, many brands struggle to get their consumers engaged online. This article sheds light on the dimensions of online brand experience on Facebook and highlights the role and importance of consumer engagement.As product offer...

Purpose – The purpose of this paper is to address the on-going debate in research on how a luxury brand ' s image of exclusiveness and uniqueness may be preserved in the ubiquitous mass medium internet. Specifically, the study aims to provide insights on how luxury brand homepages should be designed to evoke perceptions of luxury. Design/methodolo...

Research on value creation traditionally has focused on value created by the company, though customers increasingly serve as active partners, able to create value with firms in a collaborative manner. Despite interest by both scholars and managers, existing research has not yet clarified the interdependencies of service offerings and customer role...

The pricing strategy is seen as one of the five most important priorities in retail management. Over the past years, price wars have emerged and price has become an even more focal point of retailers’ agendas. Especially grocery retailers operate on very low margins and have fallen into a price-promotion trap, pressured both by competition and cons...

Previous research on luxury has been mainly directed towards understanding the nature of luxury, the luxury consumer behavior, and branding luxury goods. While a high price is commonly referred to as one defining characteristic of a luxury brand, little research may be found in the field of pricing luxury brands. Even less research on luxury pricin...

Für die meisten Unternehmen gehören internationale Vertriebsaktivitäten zum Kern ihrer Geschäftstätigkeit (Schmitz/Zupancic 2004). Der internationale Handel wächst stärker als die Bruttosozialprodukte der meisten Länder.Seit 1985 ist der Welthandel (Welt-Export) von 1.954 Milliarden US-Dollar auf 15.238 Milliarden US-Dollar in 2010 gestiegen (WTO 2...

Eine professionelle Preisstrukturpolitik trägt dazu bei, das Marketinginstrument Preis, welches im Handel eine zentrale Bedeutung hat, strategisch einzusetzen. Es geht dabei u. a. darum, die verschiedenen Preislagen zu wählen, die ein Händler ansprechen möchte und damit die Preise innerhalb des gesamten Sortiments eines Handelsunternehmens übersich...

Während fast alle Handelsbranchen durch einen Wettbewerb verschiedener Betriebsformen gekennzeichnet sind, existiert im Automobilhandel mit dem Vertragshändler eine dominierende Betriebsform. Sowohl bei Herstellern als auch bei Händlern sind Bestrebungen zu erkennen, durch neuartige Betriebsformen die Vermarktung von Fahrzeugen zu verbessern. Die U...

During the last years, sales in the online grocery business have increased steadily but on a rather small scale. Considering the total American market for grocery sales, online sales make up only 1 to 2 per cent (Jopson/Rappeport 2011 [12]). Big players like the brick-andmortar retailers Tesco and Wal-Mart, and internet retailers such as Amazon exp...