The Pricing and Revenue Management of Services

By. Irene C L Ng 30th Jul 2007

Book Discription

The Pricing and Revenue Management of Services: A Strategic Approach

In a world of changing lifestyles brought about by new services, technology and e-commerce, this book enters the arena of contemporary research with particular topicality. Integrating both theory and real world practices, Ng advances the latest concepts in pricing and revenue management for services in a language that is useful, prescriptive and yet thought-provoking.

Understanding the Buyer: Individual and Aggregate Perspectives

The book is divided into two parts, each focusing on a different perspective of the buyer in the context of pricing and revenue management:

Part 1: The Individual Buyer

In this section, Ng explores the factors that influence an individual’s purchasing decisions and how price plays a role in these motivations. Key topics covered include:

  • Understanding consumer behavior
  • Identifying customer needs and wants
  • Analyzing the value perception of services
  • Exploring different pricing strategies

Part 2: The Aggregate Buyer

In this section, Ng shifts the focus to the collective behavior of buyers and its implications for pricing and revenue management. Key topics covered include:

  • Examining demand patterns at a macro level
  • Implementing price differentiation strategies
  • Utilizing market segmentation techniques
  • Developing targeted pricing models

A Multidisciplinary Approach to Revenue Growth

Ng’s aim is to offer a strategic guide to increase revenue in services, drawing from various disciplines, whilst maintaining a strong marketing slant. Grounding the book on actual research in services, Ng is keen to highlight how the concepts and theories of pricing strategy can be combined and applied practically in a way that is easy to read and stimulating.

Who Can Benefit from This Book?

This book will be of much interest to professionals and academics alike, specifically for:

  1. Managers in the service industry seeking practical insights into optimizing their pricing strategies.
  2. Executives participating in training programs focused on marketing and revenue management.
  3. Students studying marketing or operations management in the context of service industries.

Whether you’re looking to enhance your understanding of pricing dynamics, explore innovative approaches to revenue generation, or simply stay updated with the latest trends in service management, this book offers valuable knowledge and actionable

Book Information

Print Length

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200 Pages

Language

global business alliance, featuring a globe surrounded by interconnected lines.

English

Publisher

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Routledge

Publication Date

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July 26, 2007

ISBN-13

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978-0415551953

About The Author

About Irene C L Ng

Serial entrepreneur, running her own family office from Cyprus. Also a market design economist as a Professor at the University of Warwick, Fellow of Alan Turing Institute and Wolfson College Cambridge. Early businesses included the turnaround of SA travel group, pioneering cruising in Southeast Asia and building a cruise business into $3b annual turnover. Since 2013, I’ve

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Table Of Contents

We live in a world today where a cinema ticket can be obtained for 20p, flight tickets at £1, songs at 55p and where even the most discerning marketer might wonder if the pricing for services has gone mad, or if not, perhaps a little out of control. To top it all, there are now multiple prices for buying any service, depending on where you are, who you are, why, when and how you are buying. With new technologies, the capability of firms to offer even more innovative pricing options is set to grow1 (See Table 1.1).

It is easy to think of pricing as merely a mechanism for higher revenue and to have with it, a rather detached view of how pricing strategies should be developed. Yet fundamentally, for the firm to get its pricing right, individual buyers must be willing to pay for a service. The market demand for a service must therefore, at the base of it, consist of buyers willing to part with their money to pay for the service. In fact, there must be a sufficient number of such buyers willing to do so for the firm to be able to cover its costs and turn in a profit.

In the previous chapter, I discussed the expected outlays for a buyer considering the purchase of a service, and the pressure that this exerts on price. Many of the outlays are those expected at the point of consuming the service. This chapter examines the risks faced by buyers at the point of purchase which, as I will show, could be well in advance of consumption. The separation between the purchase and consumption of a service would have severe pricing implications.

Firms develop pricing strategies with the aim of achieving higher revenues. To do so, it is important that they understand what value means to the buyer, and the role of the ENV framework in pricing strategies, as discussed in Chapter 2. More specifically, the pricing of services has to take into account the separation of purchase and consumption which would have an impact on pricing, as explained in Chapter 3.

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