Value is in the eye of the beholder – but what if the beholder has no eye?

Pricing is not simply a matter of meeting demand as economics textbooks tell us. Pricing is full of technical, ethical, and strategic questions. In fact, the more developed the economy, the more complex the price-setting process becomes. Bartering gives way to fixed prices and clearing prices in spot markets. These, in turn, give way to sophisticated pricing mechanisms supported by technological innovations, consumer theory, and the digitization of markets such as markup pricing, dynamic pricing, algorithmic pricing, value-based pricing, and customer-specific prices. Put simply, the fourth “P” of the marketing mix has become more challenging than ever to think about. Understanding pricing is a daunting task for students, scholars, and practicing managers.

In this context, it makes sense to turn to Pricing for Strategic Managers (Rekettye et al., 2025) for guidance. This is, essentially, the second edition of Pricing, The New Frontier (Rekettye and Liu, 2018). A naïve reader might think that it is not possible that there have been sufficient innovations in practice and pricing theory to make a second edition meaningful. Yet, the authors powerfully illustrate that the 7 years between the two book’s publication dates have transformed how goods and services are priced.

The book’s approach and style match the first edition. It provides logical, high-level information in an accessible form. It is written in clear, reasonably simple language and explains complex concepts in a straightforward way. Being accessible, though, does not mean it is simplistic. The text is highly readable and, at the same time, shows a sound engagement with marketing theories and research—although the links to underlying research could be developed. Like its earlier edition, the book approaches pricing from a managerial and strategic perspective. Pricing, it tells us, must be understood as a cross-functional managerial practice and an integrated component in the classic marketing mix. Throughout, the book contextualizes pricing theory and practice. It integrates contemporary challenges such as COVID-19, inflation, geopolitical shocks, digitalization, and artificial intelligence (AI) and shows how 21st-century megatrends have changed the business environment. It addresses issues including the alignment of pricing policy with sustainability and ethical principles, the effects of globalization, climate change, and the economic power shift from the West to the East.

Based on this, the book is divided into four parts. It starts with the basics of pricing and then describes pricing strategies and tactics. The third part covers intermediary pricing. The fourth, perhaps most exciting part, is about new developments in pricing. The structure follows that of the first edition, with the fourth part adding the latest information. It is to the authors’ credit that, in adding new material, they did not inflate the book’s page count.

Early chapters cover the economic foundations of pricing. The following chapters on customers’ price perception, the relationship between prices, costs, and profits, and methods of price setting are brought to life with illustrative examples. In the second section of the book, which concentrates on pricing strategies and tactics, the book provides well-defined, comprehensive explanations of pricing strategies and market effects, and explains how pricing relates to the product life cycle. Dynamic pricing, product lines pricing, and ethical considerations are all discussed. Sections on intermediary pricing, marketing channels, retail and wholesale pricing, and pricing in international markets are well-developed and up-to-date. The book addresses online trade and the impact of the Internet on pricing policy and offers examples most readers may encounter, such as TEMU, along with a brief description of its pricing success.

The last part of the book is exciting, covering new developments in pricing, digitalization, and the use of AI. The chapter on AI will no doubt attract many readers. It is technical but explains concepts in a way even the least technically attuned person can understand. It also represents a useful scholarly contribution. It clarifies what AI is and what it is not. It explains how machine learning and AI can be used in pricing. It is also an honest chapter that does not overhype technologies. The authors explain that machine learning models are not yet perfect; they require experimentation and years of adjustment. The table “AI fields and their potential pricing applications (sorted by relevance and area)” is an excellent collection of technologies and their applications in this regard. The chapter is also valuable for demonstrating AI’s potential to address previously inaccessible fields, such as value measurement or price optimization. It speaks about the impact of AI on the future of pricing and how AI solutions will transform price negotiations. It addresses robots and discusses AI challenges. While many business books either overpraise AI as a panacea or dismiss it as hype, the authors here take a measured, evidence-based approach.

So, to return to our earlier question, this revision offers substantial new material in addition to the foundations established in the first edition. The book provides an accessible way into the field of pricing for marketing theorists and practitioners. While each might take something different from the book, both will find value here. For practitioners, it offers a framework for understanding how AI, dynamic pricing, and changing consumer behavior are reshaping their field. For scholars, it synthesizes pricing theory and adapts it to contemporary contexts. Likewise, the book offers much to marketing students and instructors. For both, it provides the theoretical foundation and practical tools needed to navigate modern markets. We might ask, then, why the authors waited 7 years to revise their work!