Competitive pricing of information goods: Subscription pricing versus pay-per-use

1999 ◽  
Vol 13 (2) ◽  
pp. 447-470 ◽  
Author(s):  
Peter C. Fishburn ◽  
Andrew M. Odlyzko
Keyword(s):  
Information Goods ◽  
Subscription Pricing ◽  
Competitive Pricing

Price Performance

2013 ◽  
pp. 168-187
Keyword(s):  
Price Impact ◽  
Information Goods ◽  
Sales Promotions ◽  
Management Tools ◽  
Strategic Pricing ◽  
Price Performance ◽  
Pricing Decision ◽  
Tools And Techniques ◽  
Competitive Pricing

Strategic pricing is one of the most powerful sources of profits and growth. Yet, in recent years, it has been the least exploited driver of shareholder value. Few manufacturers review their pricing systematically, most set prices reactively. Some extrapolate from history, and for others it is just a hunch. This chapter examines the market structure of information goods and its implications for competitive pricing strategy. It focuses on several approaches to overcoming commoditization: personalizing products and prices and establishing group rates. This chapter argues that price performance is dependent on various interrelated factors in a firm. Most management tools and techniques that are applied in optimizing returns on price have long-term strategic orientation in a firm. Firms need to implement pricing strategies in association with many interrelated factors including the design of the price offerings, employee management, consumer management, and the channel management. The core discussion in the chapter provides an overview for developing pricing capabilities in the competitive marketplace. Major topics discussed in this chapter include enhancing price performance, price sensitivity and sales promotions, price impact on profits, and developing pricing decision under market uncertainties.

Fixed fee versus unit pricing for information goods; competition, equilibria, and price wars

First Monday ◽  
1997 ◽  
Author(s):  
Peter C. Fishburn ◽  
Andrew M. Odlyzko ◽  
Ryan C. Siders
Keyword(s):  
Word Processing ◽  
Main Concern ◽  
Information Goods ◽  
Marginal Costs ◽  
Clear Winner ◽  
Price Wars ◽  
Subscription Pricing ◽  
Competitive Equilibria ◽  
Unit Pricing ◽  
Fixed Fee

Information goods have negligible marginal costs, and this will create possibilities for novel distribution and pricing methods. The main concern of this paper is with pricing of goods that are likely to be consumed in large quantities by individuals. For example, will software continue to be sold at a fixed price for each unit, or will it be paid for on the basis of usage? There is substantial evidence both from observing marketplace evolution and from surveys that customers overwhelmingly prefer subscription pricing. It turns out that even if we ignore this factor, per-use pricing is not a clear winner, and therefore when the preference effect is taken into account, subscription pricing is likely to dominate. We model competitive pricing between two companies that supply essentially equivalent services (such as movies or word processing software). One company charges a fixed fee per unit, while the other charges on a per-use basis. Each is interested in maximizing its revenue. We consider instances of the models that have stable competitive equilibria between suppliers along with situations that are unstable and, in the absence of collusion, lead to ruinous price wars.

scholarly journals Environmental Attitudes and Willingness to Purchase Online—Classification Approach

2021 ◽  
Vol 13 (15) ◽  
pp. 8592
Author(s):  
Marcin Gąsior
Keyword(s):  
Information Search ◽  
Environmental Attitudes ◽  
Low Cost ◽  
Ease Of Use ◽  
Internet Users ◽  
Research Procedure ◽  
Willingness To Purchase ◽  
Willingness To Use ◽  
Competitive Pricing ◽  
Self Reporting Questionnaire

During the last several years, a tremendous increase in the popularity of online shopping has been observed. There are several possible reasons behind it, some of them, like competitive pricing, convenience or low cost of information search, considered to be extrinsic, others—like ease of use of this channel, pleasure related to it or willingness to reduce social interactions—intrinsic. The purpose of this research is to evaluate another factor, i.e., consumers’ environmental attitudes, in the perspective of their possible relation with the perception and willingness to use online and conventional shopping channels. In order to achieve this, a self-reporting questionnaire was developed and the data from a representative sample of 1000 Polish Internet users was gathered. The research procedure included cluster analysis, whose objective was to identify groups of customers with similar composition of environmental attitudes and next, a set of Kruskal–Wallis tests, aimed at identifying differences in opinions on channels between these clusters. The research proved that large groups of consumers with consistent sets of environmental attitudes exist and the scope of differences between such clusters is not reduced to a unidimensional, “positive–negative” continuum. Furthermore, there are significant differences between clusters in the declared willingness to use online and conventional shopping channels—groups more environmentally-oriented are more willing to purchase online and trust online shops, although they neither perceive conventional retail in a more negative way nor directly prefer online over conventional channels. The nature of such a phenomenon is open to explanation and interpretation, nevertheless, the research proves that environmental attitudes should be included in future models of consumers’ channel choice.

Price and revenue bounds for bundles of information goods

2021 ◽  
Author(s):  
Mihai Banciu ◽  
Fredrik Ødegaard ◽  
Alia Stanciu
Keyword(s):  
Information Goods

scholarly journals Monopoly Versioning of Information Goods When Consumers Have Group Tastes

2014 ◽  
Vol 23 (6) ◽  
pp. 1067-1081 ◽  
Author(s):  
Xueqi David Wei ◽  
Barrie R. Nault
Keyword(s):  
Information Goods
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