Competitive Pricing Strategies for Software and SaaS Products

被引：13
作者：
Zhang, Zan [1 ]
机构：
[1] Beihang Univ, Sch Econ & Management, Beijing 100191, Peoples R China
来源：
INFORMATION & MANAGEMENT | 2020年 / 57卷 / 08期
基金：
中国国家自然科学基金;
关键词：
pricing; competitive strategy; customer segments; price discrimination; game theory; QUALITY; SERVICE;
D O I：
10.1016/j.im.2020.103367
中图分类号：
TP [自动化技术、计算机技术];
学科分类号：
0812 ;
摘要：
We study the pricing strategies for a software firm and an entrant software-as-a-service (SaaS) firm in two customer markets: the market composed of the incumbent's past customers and the market of new customers. We build a game theoretical model to investigate how user costs and the quality differential between products affect firms' pricing in different customer markets. Our findings show that it is not always optimal for the software firm to price discriminate between its old users and the new customers. The entrant firm would be better off acquiring only the new customers when the SaaS quality is sufficiently low.
引用
收藏
页数：7
相关论文
共 21 条
  • [1] Cloud Implications on Software Network Structure and Security Risks
    August, Terrence
    Niculescu, Marius Florin
    Shin, Hyoduk
    [J]. INFORMATION SYSTEMS RESEARCH, 2014, 25 (03) : 489 - 510
  • [2] Bala R, 2009, PROD OPER MANAG, V18, P560, DOI [10.1111/j.1937-5956.2009.01030.x, 10.3401/poms.1080.01030]
  • [3] Pricing Information Goods: A Strategic Analysis of the Selling and Pay-per-Use Mechanisms
    Balasubramanian, Sridhar
    Bhattacharya, Shantanu
    Krishnan, Vish V.
    [J]. MARKETING SCIENCE, 2015, 34 (02) : 218 - 234
  • [4] Strategic Loyalty Reward in Dynamic Price Discrimination
    Caillaud, Bernard
    De Nijs, Romain
    [J]. MARKETING SCIENCE, 2014, 33 (05) : 725 - 742
  • [5] Dynamic Pricing and Replenishment with Customer Upgrades
    Ceryan, Oben
    Duenyas, Izak
    Sahin, Ozge
    [J]. PRODUCTION AND OPERATIONS MANAGEMENT, 2018, 27 (04) : 663 - 679
  • [6] Pricing Schemes in Cloud Computing: Utilization-Based vs. Reservation-Based
    Chen, Shi
    Lee, Hau
    Moinzadeh, Kamran
    [J]. PRODUCTION AND OPERATIONS MANAGEMENT, 2019, 28 (01) : 82 - 102
  • [7] Comparison of software quality under perpetual licensing and software as a service
    Choudhary, Vidyanand
    [J]. JOURNAL OF MANAGEMENT INFORMATION SYSTEMS, 2007, 24 (02) : 141 - 165
  • [8] QUALITY, PRICING, AND RELEASE TIME: OPTIMAL MARKET ENTRY STRATEGY FOR SOFTWARE-AS-A-SERVICE VENDORS
    Feng, Haiyang
    Jiang, Zhengrui
    Liu, Dengpan
    [J]. MIS QUARTERLY, 2018, 42 (01) : 333 - +
  • [9] Multigeneration Product Diffusion in the Presence of Strategic Consumers
    Guo, Zhiling
    Chen, Jianqing
    [J]. INFORMATION SYSTEMS RESEARCH, 2018, 29 (01) : 206 - 224
  • [10] A MODEL OF COMPETITION BETWEEN PERPETUAL SOFTWARE AND SOFTWARE AS A SERVICE
    Guo, Zhiling
    Ma, Dan
    [J]. MIS QUARTERLY, 2018, 42 (01) : 101 - +
123