New product pricing in business markets: The role of psychological traits

How does the bounded rationality of managers affect pricing? We examine this under-researched question by examining how different psychological traits of managers relate to new product pricing practices and how these pricing practices, in turn, relate to new product performance. To do so, we survey 302 American marketing, sales, and pricing managers responsible for new product pricing decisions in business markets. Among others, our study identifies conformity and intuition as distinct psychological traits associated with pricing practices that have a positive relationship with new product performance. The main contribution of this study is the empirical demonstration that psychological traits offer valuable insights into how managers determine prices for new products in business markets.