servprice - fh ooe · 10 main findings ii cont. −performance > reliability: ability to deliver...
TRANSCRIPT
ServPrice
Christina Roitinger | CCBC 2017
Margarethe Überwimmer
Robert Füreder
University of Applied Sciences Upper Austria
Global Sales and Marketing
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Agenda
Main Idea of the Project
Literature Review
Main Study Objectives
Methodology
Data Analysis
Empirical Results
Conclusion
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− Increased importance of industrial services
> Differentiation possibilities
> Opportunities for value creation
− Insights to the area of industrial services of companies in Upper Austria
and their pricing objectives
> Adequate pricing of services and making pricing decisions can be a challenge
for the industry
> Customer value regarding industrial services is not always clear
− Lack of research regarding methods, standardization and suitable
approaches to successfully utilize the full potential of industrial services
ServPrice - Main Idea of the Project
ESIC (European Service Innovation Center) Report, 2014, Summary Assessment of Upper
Austria
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Industrial services and pricing objectives –
What does literature say?
Industrial Services: „activities directly supporting customers‘ value creation by
positively influencing their industrial production processes“ (Gitzel et al., 2016)
− Pricing of Industrial Services
> Intangibility, heterogenity and perishability of services make pricing decisions
difficult
> Price shows the weakest potential for differentiation (Hinterhuber, 2004)
> Customers show only moderate interest in prices (Ulaga, & Eggert, 2004)
− Value of Industrial Services
> A pricing strategy based on customer values helps in maintaining and
expanding the clientele
> Providing value to customers helps to build long-term relationships
Gitzel et al., 2016, Industrial Services as a Research Discipline.
Hinterhuber 2004, Towards Value-based Pricing – An integrative Framework for Decision Making.
Ulaga, & Eggert 2006, Value-based Differentiation in Business Relationships: Gaining and sustaining Key Supplier Status.
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Main Study Objectives
− What is the perception of price levels of industrial services from
an outside and inside perspective?
Assessment of price perceptions
− What are the main “value dimensions” of successful service
delivery?
Development of indicators to evaluate the value of
industrial services
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Methodology
− Qualitative Research Approach
− Cooperation with 5 Upper Austrian companies
Period: October 2015 to December 2016
− Workshops with management representatives
− Expert Interviews with service technicians
− In-depth interviews carried out following the developed interview guideline
− Interviews with sales people and customers
− Sample structure: Judgmental selection.
51 interviews were conducted – among them 24 customer interviews, 13
interviews with sales people and 14 expert interviews.
Mayring, 2008, Qualitative Inhaltsanalyse: Grundlagen und Techniken.
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Data Analysis
− Audio recording of the interviews
− Transcribing the interviews
− Coding of the recorded interviews according to a corresponding
coding list using the MaxQDA Software
− Interpretation
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Major Empirical Results
Main Findings I“What is the perception of price levels of industrial services from
an outside and inside perspective?"
Discrepancy between internal and external perspective.
− Internal view: Focus on price
− External view: Focus on value
For sales employees price is the most substantial factor
whereas customers rather focus on value.
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Major Empirical Results
Main Findings II
“What are the main value dimensions regarding successful
service delivery pricing?”
Strong relationships! Differentiation possibility
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Main Findings II cont.
− Performance
> Reliability: Ability to deliver consistent performance levels over time; trust and the feeling of
security
> Availability and flexibility of service delivery: Especially, if a problem occurs it has to be fixed
in the least amount of time; trouble-shooting, disposability of spare parts
> Accuracy of service delivery: Service technicians’ accuracy, clear documentation and
transparency.
− Expertise
> Understand the customer‘s business: Willingness and effort
> Consultation: Pro-active suggestions for improvement of the customer’s business
> Outsourcing: Handing over certain services to the supplier
− Personal Interaction
> Responsiveness: Readiness to address the customer’s concerns and show commitment
> Interpersonal bonds: Development of relationships also at an individual level;
“Putting a face behind a company”
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Pitfalls in the Sales of Services
− No clearly defined sales arguments
> Lack of pro-arguments
− Little transparency of packages
− Sometimes difficult for the customer to understand
− Little or no reward for selling services
− No clear guidelines on how to organize hybrid sales
> Causes insecurity and little willingness to actively sell services
General Empirical Findings
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Conclusion
− Value dimensions may act as a basis for future pricing
decisions
− B2B suppliers need to take into consideration the following
aspects:
> Different price perceptions of sales people and customers
> Actively support sales force to sell valuable services
> Relationship is key!
Thank you! Any questions?
ContactMargarethe Überwimmer, Robert Füreder, Christina Roitinger
Global Sales and Marketing, School of Mangement
FH OÖ Forschungs & Entwicklungs GmbH
Wehrgrabengasse 1-3, 4400 Steyr / Austria
Tel.: +43 5 0804-33500
Email: [email protected]