IMPLEMENTING SERVICES IN PRICING DECISIONS TO ENHANCE THE CUSTOMER RELATIONSHIP — A FRAMEWORK FOR PRICE SETTING

AbstractThis study develops a pricing framework that focuses on relationship-building — a factor that has been largely ignored in the pricing literature. First, a case-study method has been employed to better understand how a production-oriented company sets prices for its products. Then a framework has been developed which incorporates the service component in the pricing equation. The results of this research suggest that factoring in the price for services offered can enhance relationship management, thus having a positive impact on the company's business performance.