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1. Introduction
Because it is the element of the marketing mix that is directly associated with revenues, marketing scholars frequently call for attention for pricing ([8] Diamantopoulos, 1991; [27] Myers et al. , 2002; [23] Monroe, 2003). Pricing may have severe consequences when mistakes are made. Anecdotal evidence provided by [38] Simon (1992) points at consequences of pricing that go beyond short-term financial implications of firms, such as long-run loss of market share or even a decrease of long-run profitability of an entire industry. Management surveys on the importance of marketing instruments thus consistently report high ratings for pricing (e.g. [18] Hooley et al. , 1984; [26] Myers, 1997). According to [9] Dolan and Simon (1996) managers also seem to find pricing the most difficult marketing decision.
Although marketing theory and practice thus have a common interest in pricing, the practices through which companies make price decisions and literature on pricing theory have been residing in different worlds. Ever since [32] Oxenfeldt (1973, p. 48) first spoke of a "gap between pricing theory and application," comparable observations about the theory - practice dialogue in pricing have been made by others (e.g. [8] Diamantopoulos, 1991; [24] Monroe and Mazumdar, 1988). [4] Bonoma et al. (1988, p. 337) state that "The gap between managers' concerns and academics' research is often recognised, bemoaned and blamed on one party by the other," and [22] Monroe (1995, p. 3) observes, "Regrettably there is much that needs to be done to improve our knowledge about how prices are determined, as well as how to communicate this knowledge to managers." In response to these calls, [30] Noble and Gruca (1999a) summarise price strategies proposed in marketing literature and test the feasibility of their proposed framework for pricing practice. They find that combinations of price strategies and their determinants, as derived from normative theory, reasonably apply to business practice. Yet their results also have prompted a discussion on the precise meaning of price strategies and pricing practices ([6] Cressman, 1999; [31] Noble and Gruca, 1999b). This discussion led [31] Noble and Gruca (1999b, p. 459) to state that research should focus on "how companies go about setting prices" and that "the definitions [...] should be clear enough to avoid the potential for...