Joseph Chapman is Professor of Marketing and Management at the Miller College of Business at Ball State University. He earned his bachelors and MBA degrees from Ball State University. Before earning his doctorate from Virginia Polytechnic and Statue University, he was a computer sales representative and pharmaceutical sales representative. He became a member of the Ball State faculty in 1987, where he expanded and vastly improved the school’s sales program. The program is now renowned as one of the best in the nation.
Toward a Theory of New-Product Pricing establishes three objectives: first, when pricing a new product, determining the value provided to the customer is essential; second, a theory of new-product pricing must consider how price influences a customer’s judgment; and lastly, the value of a product changes over time. The chapter proposes that a more appropriate theory can be developed by recognizing the evolutionary process of demand and price.