How Do We Get Paid for This? The Relationship Between Strategic Design Management and Pricing Power
The belief that strategic design leads to improved firm competitiveness is broadly recognised in contemporary research. However, much less is understood about the precise, concrete mechanisms by which organizations translate their design-based resources and capabilities into higher performance. Thi...
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| Format: | Article |
| Language: | English |
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Jap Sam Books
2023-08-01
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| Series: | Cubic Journal |
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| Online Access: | https://cubicjournal.org/index.php/cubic/article/view/62 |
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| author | Ian D. Parkman |
| author_facet | Ian D. Parkman |
| author_sort | Ian D. Parkman |
| collection | DOAJ |
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The belief that strategic design leads to improved firm competitiveness is broadly recognised in contemporary research. However, much less is understood about the precise, concrete mechanisms by which organizations translate their design-based resources and capabilities into higher performance. This paper provides context to this relationship by introducing the variable of pricing power as a potential element of unobserved “dark matter” that clarifies how design-based differentiation results in product performance. Pricing power is described by Stephan Liozu (2019) as “the ability to increase prices without losing demand”. Remarkably, nowhere in the vast literature on pricing is design mentioned, while in parallel pricing has not appeared to be of particular interest to strategic design researchers. In an effort to spur further interest in this variable a case study is provided, illustrating the process footwear and apparel brand Nike employed to leverage design-based differentiation to support the pricing power of a new offering.
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| format | Article |
| id | doaj-art-e5839445fb52463297d327e8b82ac807 |
| institution | Kabale University |
| issn | 2589-7101 |
| language | English |
| publishDate | 2023-08-01 |
| publisher | Jap Sam Books |
| record_format | Article |
| series | Cubic Journal |
| spelling | doaj-art-e5839445fb52463297d327e8b82ac8072025-02-07T22:39:10ZengJap Sam BooksCubic Journal2589-71012023-08-0166How Do We Get Paid for This? The Relationship Between Strategic Design Management and Pricing PowerIan D. Parkman0University of Portland The belief that strategic design leads to improved firm competitiveness is broadly recognised in contemporary research. However, much less is understood about the precise, concrete mechanisms by which organizations translate their design-based resources and capabilities into higher performance. This paper provides context to this relationship by introducing the variable of pricing power as a potential element of unobserved “dark matter” that clarifies how design-based differentiation results in product performance. Pricing power is described by Stephan Liozu (2019) as “the ability to increase prices without losing demand”. Remarkably, nowhere in the vast literature on pricing is design mentioned, while in parallel pricing has not appeared to be of particular interest to strategic design researchers. In an effort to spur further interest in this variable a case study is provided, illustrating the process footwear and apparel brand Nike employed to leverage design-based differentiation to support the pricing power of a new offering. https://cubicjournal.org/index.php/cubic/article/view/62strategic design managementdesign-based differentiationpricing strategypricing powerproduct design |
| spellingShingle | Ian D. Parkman How Do We Get Paid for This? The Relationship Between Strategic Design Management and Pricing Power Cubic Journal strategic design management design-based differentiation pricing strategy pricing power product design |
| title | How Do We Get Paid for This? The Relationship Between Strategic Design Management and Pricing Power |
| title_full | How Do We Get Paid for This? The Relationship Between Strategic Design Management and Pricing Power |
| title_fullStr | How Do We Get Paid for This? The Relationship Between Strategic Design Management and Pricing Power |
| title_full_unstemmed | How Do We Get Paid for This? The Relationship Between Strategic Design Management and Pricing Power |
| title_short | How Do We Get Paid for This? The Relationship Between Strategic Design Management and Pricing Power |
| title_sort | how do we get paid for this the relationship between strategic design management and pricing power |
| topic | strategic design management design-based differentiation pricing strategy pricing power product design |
| url | https://cubicjournal.org/index.php/cubic/article/view/62 |
| work_keys_str_mv | AT iandparkman howdowegetpaidforthistherelationshipbetweenstrategicdesignmanagementandpricingpower |