There are two issues when organizing pricing authority within the firm: The vertical delegation of tactical pricing authority to salespeople and the horizontal dispersion of strategic pricing authority across sales, marketing, and finance
Higher horizontal dispersion of pricing authority increases both profitability and sales growth of B2B firms
Higher vertical delegation of pricing authority drives sales growth, but comes with both benefits and costs in terms of profitability. Thus, medium levels of vertical delegation are optimal for B2B firms
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