The micro-foundations of pricing strategy in industrial markets: A case study in the European packaging industry

The choice and implementation of pricing strategy is often described as an optimization problem where the firm chooses the most profitable pricing strategy given certain external determinants. Contrary to this notion, recent research indicates that the pricing of products is a costly and complex activity, and that firms may differ in their capability to implement pricing strategies. This case study of industrial pricing strategy in the European packaging industry examines how different assets and routines are involved in the implementation of pricing strategy. The study particularly highlights the role of individual judgment, human capital and commercial experience for the implementation of pricing strategy in markets that because of customization are subject to high levels of uncertainty. (C) 2017 Elsevier Inc. All rights reserved.