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Capture and Communicate Value in the Pricing of Services

Widespread pricing mismanagement plagues service industries because too many services marketers ignore the special challenges of pricing intangible products. The authors discuss the implications of this kind of pricing in today's highly competitive conditions and offer a framework that reconciles the implications with customers' quest for value. Three distinct but related strategies for services pricing -- satisfaction-based pricing, relationship pricing, and efficiency pricing -- can help services marketers capture and communicate value through their pricing.

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