Abstract
PurposeWhile marketing and management research suggests that managers’ individual characteristics influence pricing decisions, the influence of personality traits in this context remains unclear. This study aims to explore the relationship between the five basic personality traits of the five-factor model (extraversion, conscientiousness, openness to experience, agreeableness and neuroticism) and three basic pricing practices (value-, competition- and cost-informed).Design/methodology/approachOn the basis of a non-experimental decision-making scenario, the analysis examines the pricing decisions of 57 managers in relation to a new business service.FindingsThe results suggest that managers’ conscientiousness and openness to experience are positively related to preference for value-informed pricing. Similarly, managers’ agreeableness is positively related to preference for competition-informed pricing and managers’ openness to experience and agreeableness are positively related to preference for cost-informed pricing.Research limitations/implicationsThe cross-sectional study design does not support causal inference, and the modest sample size may limit the external validity of the findings.Practical implicationsBy increasing awareness of the influence of personality on pricing preferences, the findings are of relevance to managers who are directly involved in pricing decisions. Additionally, the findings are informative for managers who must assign responsibility for pricing authority within firms.Originality/valueThis empirical exploration of the relationship between certain personality traits and specific pricing practices contributes to the literature on psychological aspects of pricing theory by showing how managerial personality influences pricing preferences under uncertainty.
Published Version
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