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Cognitive time as a service price determinant: Hidden dynamics and price collapse
Linnaeus University.
Uppsala University.
Södertörns högskola, Institutionen för samhällsvetenskaper, Företagsekonomi.ORCID-id: 0000-0003-4483-7673
2020 (engelsk)Inngår i: Journal of Business Research, ISSN 0148-2963, E-ISSN 1873-7978, Vol. 112, s. 248-253Artikkel i tidsskrift (Fagfellevurdert) Published
Abstract [en]

A novel service price equation is advanced to explain how prices in the services market depend on service workers’ cognitive time in relation to the actual clock time (physical time) that is contracted for a service. Cognitive time affects service revenues, costs, the targeted service profit, and budgeted service time. The equation shows how the cognitive time of service workers produces a hidden price-lever effect, in which the service price behavior becomes non-linear. A minor difference between the cognitive time and the physical time of a given service generates a significant change in the price level required to realize a targeted service profit. If the workload of a service worker is increased to a certain level, there is a potential service price collapse, implying that the service provider cannot reach the budgeted profit. This collapse condition further advances the emerging literature on behavioral pricing of services.

sted, utgiver, år, opplag, sider
Elsevier, 2020. Vol. 112, s. 248-253
Emneord [en]
Pricing strategy, Cognitive time, Physical time, Time distortion, Lever effect
HSV kategori
Identifikatorer
URN: urn:nbn:se:sh:diva-39582DOI: 10.1016/j.jbusres.2019.10.056ISI: 000527393100023Scopus ID: 2-s2.0-85075908172OAI: oai:DiVA.org:sh-39582DiVA, id: diva2:1378671
Tilgjengelig fra: 2019-12-13 Laget: 2019-12-13 Sist oppdatert: 2020-06-25bibliografisk kontrollert

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