Pricing strategies of service offerings in manufacturing companies: a literature review and empirical investigation

This paper presents the strategies used by manufacturing companies to price service offerings. After reviewing the extant literature on this subject, the paper forwards propositions that are relevant to illustrate the relationships between servitization, pricing strategies, bundling options, revenue models and pricing capabilities. Using multiple case-based research, this study makes three contributions to the literature on servitization of manufacturing firms. It extensively explores the relationship between servitization and pricing practices, it suggests which factors can moderate this relationship and it examines the capabilities demanded to the firm to introduce innovative pricing practices.