فن آوری جدید چاپ و قیمت گذاری
|کد مقاله||سال انتشار||تعداد صفحات مقاله انگلیسی||ترجمه فارسی|
|18062||2009||10 صفحه PDF||سفارش دهید|
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Publisher : Elsevier - Science Direct (الزویر - ساینس دایرکت)
Journal : Industrial Marketing Management, Volume 38, Issue 3, April 2009, Pages 253–262
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.
The globalization trend over the last decades has resulted in increased price competition. Clearly, removals and reductions of trade barriers, improved communication technology, and swift logistics have made it attractive for firms in Europe and in the U.S. to outsource production to countries with low labor costs. Most industrial markets are, therefore, more price competitive than they were a decade ago (Christopher and Gattorna, 2005, Solberg et al., 2006 and Voeth and Herbst, 2006). Also, the competitive landscape is influenced by technological advancements (Smith, Sinha, Lancioni, & Forman, 1999) with change as a constant challenge for those in charge of technology management (Danaher, Hardie, & Putsis, 2001). The far-reaching effects of the new production technology are apparent in concepts like mass customization (Jacob, 2006), and on-demand production (Wind, 2006). Thus, while most industrial markets are increasingly price-driven, technological advancements are important in creating competitive advantages. However, although technological advancements create new product features, it might be difficult to adjust pricing so that it reflects the value of the new features (e.g. Jenster, Hayes, & Smith, 2005, p. 175; Lancioni, Shau, & Smith, 2005). In particular the problem of making such price adjustments indicates in markets characterized by intense competition and price pressure. Under such market conditions supply exceeds demand, which makes it possible for customers to benefit from new value-added features without having to pay for them. Consequently, as competition intensifies, it becomes problematic for suppliers to make prices reflect the value-added of new products and services. The challenges associated with investments in new technology, competition and pricing are apparent in the printing industry. Nagle and Cressman (2002) presented an interesting example of a printing company, which was committed to quality work and high levels of customer service. Despite this commitment, it was hard for the printing company to set prices so that they reflected the value of their services. According to Nagle and Cressman (2002), besides competition, the reason why pricing remained unchanged was that managers viewed the printed products as commodities, with services merely as “value-adds.” Thus, competition in the market and the managers' view on printed products affected the printing company's pricing, and hence, its profitability. The purpose of this paper is to analyze how five Swedish printing houses have been able to capitalize on their investments in digital printing technology. With the investments in new digital printing equipment, the printing houses have tried to obtain competitive advantages through upgraded products and services. Compared to conventional printing technology, digital printing makes it possible to reduce delivery times, print shorter series, and increase customization of the printed products (Mejtoft, 2006). Also a difference is that costs per printed copy are relatively high with digital printing, which makes it necessary for the printing houses to adjust their pricing of products and services. Thus, new pricing is needed to capitalize on the investment in the new printing technology. However, due to competition from printing houses in low cost countries, the competitive climate has intensified with over capacity and price pressure characterizing the printing business (Birkenshaw, 2004, Mejtoft, 2006 and Smyth, 2006). Given these market conditions, it is of interest to study whether the five printing houses' investments have resulted in changed pricing. This paper makes a contribution to our understanding of aspects that affect firms' opportunities to capitalize on investments in new technology in markets characterized by intense competition. Although it is well known that intense competition and price pressure affect firms' opportunities to capitalize on their investments, it is of interest to find empirical evidence, and discuss how these aspects are reflected in firms' pricing. Practitioners may find this paper interesting since attention is directed at aspects affecting pricing of products and services made possible through investments in new production technology.
نتیجه گیری انگلیسی
This study has shown new pricing is possible when there is a substantial difference between the new solution and available substitutes. This study's findings are, therefore, consistent with Lancioni's (2005a) observation, which suggested that products and services with tangible value-added allow industrial firms to set new prices. Also, a conclusion drawn from this study is that the investments in the digital printing technology put the printing houses into a high technology sector. As suggested by Smith et al. (1999), product life cycles are shorter in high technology sectors than in low technology sectors. In this study, the short product life cycle was apparent in the rapid diffusion of the new technology, which made the new technology available to all firms' in the printing business. Thus, the short-lived competitive advantage was a sign of the printing companies being affected by the short business cycles that govern high technology sectors. This study is, therefore, in accordance with the proposals of Smith et al. (1999) since the printing houses' opportunities to capitalize on their investments in the digital printing technology were affected by the nature of high technology markets. There are a number of limitations to this study's findings. One limitation is that only five Swedish companies have been studied. Although most Western markets are relatively similar, it is unknown whether this study's findings are applicable in other markets. For the purpose of generalization it could be of interest to conduct a quantitative study on aspects that affect firms' opportunities to capitalize on their investments in new technology in highly competitive markets.