Case Study

Thomas & Betts: The value-based pricing decision

7 pages
June 2016
Reference: IMD-7-1798

The case examines the decision facing T&B product managers in pricing an innovative new product. The product, a medium-voltage ‘spiking aid,’ reduces the need for utilities to cut power cables prior to performing repair and maintenance work on underground electrical distribution systems, leading to significant labor cost and material savings and other benefits. The case enables readers to estimate the economic value to customers of the new product relative to existing options and supports a discussion of other factors involved in pricing decisions. It also provides context on T&B’s efforts to build a strategic capability around value-pricing and pricing discipline.

Learning Objective

Explore strategic issues in pricing an innovative new product and calculate the economic value to the customer of the new offering relative to competitive reference products.

Keywords
Marketing, Innovation, Electrical Components, Electrical Equipment, Manufacturing, Product Management, Value-based Pricing, Pricing Strategy
Settings
Northern America, United States of America
Thomas and Betts, Manufacturing, Electric and Electronic Equipment
2010-2016
Type
Field Research
Copyright
© 2016
Available Languages
English
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This case study is part of a series
  • Thomas & Betts: Becoming partner of choice via customer centricity
  • Thomas & Betts: The value-based pricing decision
This case study is part of a series
  • Thomas & Betts: Becoming partner of choice via customer centricity
  • Thomas & Betts: The value-based pricing decision
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Thomas & Betts: Becoming partner of choice via customer centricity
By Winter Nie Goutam Challagalla and David Gray
Case reference: IMD-7-1797 ©2016
Summary
The case briefly reviews the history of the Thomas & Betts (T&B) company, a maker of electrical components and connectors for the industrial, const...
Reference IMD-7-1797
Copyright ©2016
Copyright owner IMD Copyright
Organization Thomas and Betts
Industry Manufacturing, Electric and Electronic Equipment
Available Languages English
Contact

Research Information & Knowledge Hub for additional information on IMD publications

Thomas & Betts: The value-based pricing decision
By Winter Nie Goutam Challagalla and David Gray
Case reference: IMD-7-1798 ©2016
Summary
The case examines the decision facing T&B product managers in pricing an innovative new product. The product, a medium-voltage ‘spiking aid,’ reduc...
Reference IMD-7-1798
Copyright ©2016
Copyright owner IMD Copyright
Organization Thomas and Betts
Industry Manufacturing, Electric and Electronic Equipment
Available Languages English
Contact

Research Information & Knowledge Hub for additional information on IMD publications