Price-setting Strategies For Product Innovations In The Medtech Industry
- Written by Benjamin Cohen and Michael Neubert
Abstract: This article analyzes the research problem of price-setting strategies for product innovations in the MedTech industry. It is based on the conceptual framework of price-setting practices, strategies, and models. A multiple case study research is then performed on six medical technology companies, focusing on how they set their initial product price for a new technology solution to either existing medical conditions or technology limitations. The research results show that MedTech companies opt for competition-informed price practices and buy pricing models. The pricing strategies vary between skimming and market-based pricing strategies. Price innovations are limited due to regulation and financial considerations.