Value-based pricing and cognitive biases: An overview for business markets

摘要

To investigate how cognitive biases inhibit value-based pricing practices among managers in business markets, this article considers five different cognitive biases perceived lack of control, herding, fixed-pie bias, ambiguity aversion, and egocentric fairness bias and their effects on value-based pricing. Despite recent calls for more research on the psychological aspects of pricing, few studies have focused on business markets. Drawing on research in psychology and marketing for its theoretical foundation, this overview extends the limited body of existing research. The article's key contribution is to explain how psychological challenges affect value-based pricing practices, with implications and suggestions for further research.