TY - JOUR A1 - Homburg, Christian A1 - Jensen, Ove A1 - Hahn, Alexander T1 - How to Organize Pricing? Vertical Delegation and Horizontal Dispersion of Pricing Authority T2 - Journal of Marketing N2 - Although pricing is one of the strongest drivers of profitability, little empirical research has examined how a firm should organize pricing internally. This research draws on the information-processing view of organizational design to conceptualize a framework of how firms organize their pricing authority both within the sales function and across the sales, marketing, and finance functions. The authors find a nonlinear, inverted U-shaped relationship between the vertical delegation of pricing authority and profitability as well as a positive relationship between the horizontal dispersion of pricing authority across sales, marketing, and finance and profitability. Another key finding is a positive interaction between vertical delegation and horizontal dispersion, indicating that firms need to jointly design vertical delegation and horizontal dispersion. In addition, the results identify price-related market dynamism as a moderator of the horizontal dispersion of the pricing authority-profitability relationship and emphasis on margin-based incentives as a moderator of vertical delegation of the pricing authority-profitability relationship. The authors also analyze the relationship between the organizational design of pricing authority and sales growth. Y1 - 2012 UR - https://opus4.kobv.de/opus4-ohm/frontdoor/index/index/docId/3391 UR - https://www.jstor.org/stable/41714509 SN - 1547-7185 VL - 76 IS - 5 SP - 49 EP - 69 PB - Sage Publications, Inc. ER -