The contingent effect of product relatedness on B2B firms pricing strategy. Evidence from India

Article

Batsakis, G., Theoharakis, V., Azar, G., Singh, S. and Singh, R. 2019. The contingent effect of product relatedness on B2B firms pricing strategy. Evidence from India. Industrial Marketing Management. 83, pp. 266-274. https://doi.org/10.1016/j.indmarman.2019.04.012
TypeArticle
TitleThe contingent effect of product relatedness on B2B firms pricing strategy. Evidence from India
AuthorsBatsakis, G., Theoharakis, V., Azar, G., Singh, S. and Singh, R.
Abstract

This paper empirically examines the contingent effect of product-related diversification on B2B firms' pricing strategy. Drawing our arguments from the recent advances in corporate strategy (i.e., resource-based view of the firm and product diversification strategy) and industrial marketing literatures, we argue that product-related diversifiers are more capable in adopting a high rather than a low pricing strategy. We also contend that this relationship will be positively moderated by a number of firm-specific factors, namely a firm's ability to establish high barriers to entry in its focal industry, as well as its strategic decision to invest in promotion strategy. We test our hypotheses against primary data collected from India. The data consists of a cross section from 127 domestic firms and subsidiaries of foreign MNEs operating in the chemicals / pharmaceuticals and the electronics industry. The results provide support for all the aforementioned hypotheses.

KeywordsPricing strategy; Resource-based view; Corporate-level strategy; Product-related diversification; Promotion strategy; India
PublisherElsevier
JournalIndustrial Marketing Management
ISSN0019-8501
Electronic1873-2062
Publication dates
Online25 Apr 2019
PrintNov 2019
Publication process dates
Accepted18 Apr 2019
Deposited01 Mar 2024
Output statusPublished
Digital Object Identifier (DOI)https://doi.org/10.1016/j.indmarman.2019.04.012
Web of Science identifierWOS:000503090900023
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