A structured review on the mechanisms of value-based pricing: towards a conceptual framework for new businesses how to operationalize it in practice

Pricing is a key lever for increasing the profitability of firms and researchers agree on the superiority of a value-based pricing strategy compared to cost-or competition-based approaches. However, value-based pricing is not yet universally applied in practice-a phenomenon described as the "value-based pricing paradox." To address this discrepancy, we aggregate prior research insights concerning the mechanisms of valuebased pricing and barriers to its implementation (i.e., how to conduct value quantification and how to communicate value to the customer). We then map these barriers to existing solutions and approaches proposed in literature, before developing a conceptual framework to guide new businesses in the operationalization of value-based pricing.