The pricing strategies in the machine tool manufacturing industry and the factors influencing it.

Details

Supervisors

Kamp, Bartholomeus

Faculty

Louvain School of Management

Degree label

Master [120] en sciences de gestion

Abstract

Industrial buyers are becoming more and more interested in buying entire solutions to go with their products, showing a trend in the procurement process in the direction of a service dominant logic, motivated by the will to be more cost-efficient and to reduce their supplier base. Although service offer is becoming a mainstream trend in the manufacturing industry, companies that have applied the underlying concepts have shown different results. One of the factors that plays an important role in the solution provider’s path to advanced – and profitable- servitization is the pricing strategy that is adopted. It seems that pricing strategies are not always deployed in accordance of the service strategies and that organizations are, sometimes, not able or not willing, to change it. However, it can be difficult to understand why it is the case. Although researchers reviewed factors impacting pricing practices, they tend to overlook the impact customers can have. This study will thus look at what are the strategies applied on the market and what are the factors impacting with by taking both the supply and demand side into account.