A price-determining model for industrial “technology-push” innovations
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Author(s)Nataliya ChukhrayLink to ORCID Index: https://orcid.org/0000-0001-8591-2487
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Oleksandra MrykhinaLink to ORCID Index: https://orcid.org/0000-0002-0567-2995
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Khrystyna BespaliukLink to ORCID Index: https://orcid.org/0000-0003-1080-1154
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Andrii ChukhraiLink to ORCID Index: https://orcid.org/0009-0003-6997-6255
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DOIhttp://dx.doi.org/10.21511/im.21(4).2025.03
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Article InfoVolume 21 2025, Issue #4, pp. 27-44
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Type of the article: Research Article
Abstract
The complexity of industrial markets in the Fourth Industrial Revolution necessitates new pricing approaches for R&D outcomes. “Technology-push” innovations often feature advanced technical parameters that are misaligned with customers’ willingness to pay, creating a commercialization gap that requires models that integrate cost, competition, and perceived value. The aim of this study is to develop a price-determining model for industrial “technology-push” innovations. The authors’ price-determining model for industrial “technology-push” innovations combines cost-plus pricing and competitive pricing with the Price Sensitivity Measurement (PSM) analysis. Empirical data from 2022 to 2025 in optical interferometry were used to validate the approach. In the case of “technology-push” innovations, a gap may exist between the perceived value of technical parameters and the price that industrial customers are willing to pay. The trade-off between technical parameters and price refers to the balance or compromise that customers and industrial marketers must consider when making a purchase. Setting the right price on industrial “technology-push” products requires a comprehensive analysis of customer preferences, competitive landscape, and cost structures. Customers’ perception of value directly influences their willingness to pay for a product or service. Even if a product is technically superior or offers advanced features, its perceived value by customers ultimately determines the optimal price point. Aligning pricing with customer perceptions of value helps maximize revenue and profitability for both transaction participants. The authors’ method enables the determination of the boundaries of the market price range for an innovation with sufficient accuracy. Combining traditional pricing methods with price sensitivity analysis of industrial customers can offer several advantages, leveraging the strengths of each approach to improve the price-determining process for industrial “technology-push” innovations.
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JEL Classification (Paper profile tab)O31, O33, D40, M31
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References49
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Tables6
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Figures4
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- Figure 1. The price-determining model for industrial “technology-push” innovations based on consumer price sensitivity
- Figure 2. An algorithm for implementing the PSM analysis into the price-determining model for industrial “technology-push” innovations
- Figure 3. Questionnaire for determining the level of price sensitivity of experts regarding the device for interferometric determination of the refractive index of crystalline materials in the optical range
- Figure 4. The graph of the PSM-analysis curves of the device for interferometric determination of the refractive index of crystalline materials in the optical range
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- Table 1. Results of estimation of technical and economic parameters of competitive analogues of the device for interferometric determination of the refractive index of crystalline materials in optical (European enterprises)
- Table 2. Grading of qualitative assessments of the impact of an innovative industrial product on price setting
- Table 3. The results of the XYZ-analysis of the accuracy of forecasting estimates of the impact on the formation of the innovation
- Table 4. Changes in the price of a device for interferometric determination of the refractive index of crystalline materials in the optical range, depending on changes in its technical characteristics
- Table 5. The results of the price perception survey for a device for interferometric determination of the refractive index of crystalline materials in the optical range (according to the PSM analysis)
- Table 6. Validation of the range of prices for the industrial innovative product due to the dynamics of consumer price sensitivity to the seventh technical parameter of the innovative product
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