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Pricing in industrial markets: a case study at Ovako Steel AB
2005 (English)Independent thesis Advanced level (professional degree), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

The aim of this thesis has been to provide a better understanding of pricing within industrial markets. Previous researchers have established that when deciding pricing strategy and ultimately the final price for a product, the marketing managers must take many factors, both internal and external, into consideration. This thesis will mainly investigate the internal factors that affect a manufacturer within industrial markets. To be able to get a better understanding of pricing within industrial markets, a case study was performed at Ovako Steel AB, a manufacturer of special engineering steel. The company operates within many markets both domestically and internationally. In many of the domestic markets, the company are market leader, both with regard to market share and price level and was therefore suitable for this study. In contradiction to previous research a finding from this study was that the investigated company actually were able to maintain a high price strategy over a longer period of time. The use of the analysis of the company’ customers and products as a tool for developing price differentiations were found to be very useful. Although the result of the analysis was not what the marketing staff had hoped for, it is a good starting point to develop a system for price differentiation. Additional finding for this study was that companies that is faced with high manufacturing costs and therefore use a high price strategy and act as price leaders in one or several markets, have to consider the use of augmented products to be able to create and maintain a high price.

Place, publisher, year, edition, pages
Keyword [en]
Social Behaviour Law, Pricing, Industrial Markets
Keyword [sv]
Samhälls-, beteendevetenskap, juridik
URN: urn:nbn:se:ltu:diva-46778ISRN: LTU-EX--05/035--SELocal ID: 465d3384-6ffd-4cc7-87be-03aa15c895edOAI: diva2:1020093
Subject / course
Student thesis, at least 30 credits
Educational program
Chemical Engineering, master's level
Validerat; 20101217 (root)Available from: 2016-10-04 Created: 2016-10-04Bibliographically approved

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