Our research –

The equation “profit = quantity x price – costs” explains the direct relationship between price and profit. Taking a closer look at the components of the classic marketing instrument, the price constitutes the most effective profit driver. However in reality it becomes apparent, that only very few companies possess a professional price management.

We base our work on a consequent process perspective of price management, which consists of four phases: strategy, analysis, decision, and implementation. In the strategic phase, it is especially interesting to determine which price-performance-positioning the company strives for. During the analysis phase, one distinguishes between the economic and the behavioral analysis. During the decision phase, the optimal price is considered. It is distinguished between one-dimensional, multidimensional and long-term optimized prices. Finally, the predetermined price decision has to be implemented inwards and outwards during the implementation stage. Another part of this phase is also the monitoring of the implementation. The process-related perspective of price management is based on the fourth edition of the real classic "Price Management" of Professor Dr. Dr. h.c. Hermann Simon und Professor Dr. Martin Fassnacht. The English edition of the book, which targets research as well as business practice, was published by Springer Nature, New York in January 2019. In addition, the Russian and the Polish editions are available since September 2019.

Based on this process perspective, the research projects on the Chair of Marketing and Commerce of Professor Dr. Martin Fassnacht strive for answers regarding science-based, management-relevant questions of price management. Apart from a theoretical and conceptual foundation we especially pay attention on an empirical verification of our results. As relatively little empirical research is conducted in the field of price management, a broad approach of research projects seems to be adequate. In this connection, both the complete price management process in different industries (consumer goods, commerce) and single phases of the process are considered.

Furthermore, the research field price management contains the connection between the economic and behavioral perspective of price management as well as the intersection to brand management.

Selected publications:

Due to technological progress, an increased availability of information, the reduction of commercial obstacles, and the continuous development of emerging markets, brands in today’s markets are facing high competitive pressure and increasingly heterogeneous consumer needs. Simultaneously, urbanization and the growth of the middle class lead to a rising consumer welfare that create continuous demand shifts into higher and lower value segments. Consumers adjust their purchasing habits and are only willing to pay price premiums for strong and relevant brands. Therefore, brand management is fundamental for business success. Not only should it embrace the very essence of a company but strong branding will also ensure that a product/company stands out in a competitive environment. To escape from downward price spirals, satisfy the aspiration of new, more upward-oriented consumers, and counteract market share losses due to demand shifts, it is essential to create, sustain, and continuously develop strong brands.

Our brand management research focuses on brand and line extension, premiumization, and luxury brand management. We are also examining research questions at the interface between price and brand management.

Selected publications:

The world of marketing has changed dramatically in recent years. Changes in consumer behavior present major challenges for retail managers. One of these challenges is sustainable differentiation from competition, which requires precise knowledge of customer needs. The main aspects to be considered here are the customers’ striving for experience orientation and shopping enjoyment as well as a strong tendency toward convenience. Such developments underline the importance of basing marketing activities on the needs of customers.

One of the most relevant topics that addresses how best to meet the aforementioned customer needs and create a unique, seamless experience is omnichannel business. Omnichannel business combines different channels, whether online, offline or mobile, so that customers can learn about, buy or pay for products in a way that provides a seamless and better overall shopping experience. 

Our research in retail marketing focuses on omnichannel business. Thereby, we are especially interested in omnichannel pricing and consumer behavior, as well as electronic marketplaces.

Selected publications: