Fair Pricing in B2B Large Heterogeneous Item Portfolios with Sporadic Sales Patterns
(A2026-132916)

AUTHORS

Noortje Gevers, University of Luxembourg; Sarah Gelper, University of Luxembourg

ABSTRACT

Pricing large, heterogeneous product portfolios in B2B markets often leads to ad-hoc prices that undermine both profitability and fairness perceptions, with potential negative consequence for long-term customer relationships. A key reason is the lack of insight into how customers use reference prices in complex settings. We collected our data from a global leader in automation logistics solutions. We model both the immediate decision of whether to purchase the product, as well as the order volume in the subsequent purchase. First, we find that customers rely on their internal reference price when deciding whether to purchase a product. Second, we identify cross-effects: price changes in other items also affect the purchase decision for a given item in the same order. Last, looking at the effects of gains and losses on subsequent orders, we find asymmetric responses: customers react stronger to losses than to gains, indicating that price changes affect long-term customer relationships.