To address this central question, we apply the effectuation theory from entrepreneurship literature. To increase our understanding of the conundrum discussed above, this study seeks to answer the following research question: How do entrepreneurs co-create their pricing strategies with their customers and other stakeholders in the context of digital services characterised by high uncertainty? Scant attention to behavioural pricing is rooted in the dominant assumption that industrial customers rely on objective information and go through the causal process of decision-making (Monroe, Rikala, and Somervuori 2015). We have a meagre understanding of non-predictive logic and its implications (Nambisan 2017) in developing quality relationships for co-creating pricing strategies with other stakeholders. Therefore, they need to apply non-predictive logics to co-understand the mutual needs and values and co-develop pricing strategies within their network to mitigate the uncertainty of the context (Karami and Read 2021 Read et al. In this situation, due to the novelty of new offerings, the lack of any established pricing routine, and the customers not knowing exactly what they want and how the service might bring value to them, entrepreneurs cannot rely on prediction-based pricing models. The digital service industry presents as one of these industries, where entrepreneurs have to adjust their offerings to meet customers’ specific needs and adapt to fast changes in the environment (Nambisan 2017). However, in industries where changes are fast, and markets are uncertain (Nambisan, Wright, and Feldman 2019), pricing becomes more challenging (Read et al. In some industries, like beverages and lodging, firms can apply causal heuristics to use existing pricing models based on well-established routines and calculations (Read et al. Proper pricing is critical to any firm’s success or failure in the market (Laatikainen and Ojala 2021).
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