New printing technology and pricing |
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Authors: | Peter Hultén [Author Vitae] Magnus Viström [Author Vitae] Thomas Mejtoft [Author Vitae] |
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Institution: | a ESC Rennes School of Business, 2, rue Robert d'Arbrissel, 35065 Rennes, France b STFI-Packforsk AB/Lund University (division of packaging logistics), STFI-Packforsk c/o Mittuniversitetet, SE-891 18 Örnsköldsvik, Sweden c STFI-Packforsk AB/Royal Institute of Technology (KTH), STFI-Packforsk c/o Mittuniversitetet, SE-891 18 Örnsköldsvik, Sweden |
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Abstract: | This case study analyzes five Swedish printing houses' pricing with respect to their investments in new printing technology. The new printing technology made it possible for the printing houses to market new products and services to meet the demand for shorter delivery times and full service solutions. Although this demand was apparent, the printing houses' opportunities to capitalize on their investments depended on the characteristics of the market segment that they served. Findings indicate that the new printing technology made it possible to change prices when the new services reduced delivery time and costs, and when there were substantial differences between the new services and available substitutes. Thus, customers accepted new pricing when the utilization of the new technology resulted in financial gains and time reductions. |
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Keywords: | Competition Investments in new technology Perception of value Pricing |
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