Gain-sharing arrangements in value-based pricing: economic and behavioral perspectives

This entry explores gain-sharing arrangements in value-based pricing from economic and behavioral perspectives in contemporary business-to-business (B2B) markets. It investigates customer resistance to these arrangements despite their economic benefits, emphasizing the interplay between rational economic decision-making and psychological factors shaping customer perceptions. While traditional approaches focus on economic utility maximization, the behavioral perspective acknowledges the influence of cognitive biases and social elements on decision-making. The entry advocates for a balanced understanding of economic rationality and behavioral influences to effectively address customer resistance. It suggests that managers must consider psychological and emotional concerns alongside economic arguments when implementing gain-sharing arrangements. Insights include leveraging choice architecture tools, framing strategies, and showcasing successful reference cases to align buyer–seller interests and mitigate resistance. The entry emphasizes the need for further research to unravel the behavioral dynamics influencing the adoption of gain-sharing arrangements.