Skip to main content
Springer Nature Link
Log in

A Dynamic Pricing Model for Software Products Incorporating Human Experiences

  • Conference paper
  • First Online:
Software Business (ICSOB 2016)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 240))

Included in the following conference series:

  • 1052 Accesses

Abstract

At the age of software as a service (SasS) and cloud computing as compared to what is used to be earlier, designing product strategies is a challenging concern for software product management researchers. Comparative statics models are considered to identify software market characteristics while assessing the managerial decisions during the software product strategy design. However, their applicability in dynamic market analysis is rather limited. Important concerns in dynamic market such as dynamic pricing cannot be fully estimated. This motivated the development of a simulation-based dynamic model to evaluate the efficiency and effectiveness of using different pricing models. The proposed (simulation) approach given in details in this paper can be used in conducting complex analysis of software product strategy that involves consideration of product strategy as a portfolio of interrelated solutions rather than a set of independent managerial decisions.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution

Subscribe and save

Springer+ Basic
$34.99 /Month
  • Get 10 units per month
  • Download Article/Chapter or eBook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Similar content being viewed by others

References

  1. Bontis, N., Chung, H.: The evolution of software pricing: from box licenses to application service provider models. Internet Res. 10(3), 246–255 (2000)

    Article  Google Scholar 

  2. Buxmann, P.: Network effects on standard software markets: a simulation model to examine pricing strategies. In: 2001 2nd IEEE Conference Standardization and Innovation in Information Technology, pp. 229–240. IEEE (2001)

    Google Scholar 

  3. Chellappa, R.K., Shivendu, S.: Managing piracy: Pricing and sampling strategies for digital experience goods in vertically segmented markets. Inf. Syst. Res. 16(4), 400–417 (2005)

    Article  Google Scholar 

  4. Conner, K., Rumelt, R.P.: Software piracy: An analysis of protection strategies. Manage. Sci. 37(2), 125–139 (1991)

    Article  Google Scholar 

  5. Cusumano, M.A.: The changing software business: Moving from products to services. Computer 41(1), 20–27 (2008)

    Article  MathSciNet  Google Scholar 

  6. Harmon, R., Raffo, D., Faulk, S.: Pricing strategies for information technology services: A value-based approach. In: 42nd Hawaii International Conference on System Sciences, HICSS 2009, pp. 1–10. IEEE (2009)

    Google Scholar 

  7. Iveroth, E., Westelius, A., Petri, C.-J., Olve, N.-G., Cöster, M., Nilsson, F.: How to differentiate by price: Proposal for a five-dimensional model. Eur. Manag. J. 31(2), 109–123 (2013)

    Article  Google Scholar 

  8. Laatikainen, G., Ojala, A., Mazhelis, O.: Cloud services pricing models. In: Herzwurm, G., Margaria, T. (eds.) ICSOB 2013. LNBIP, vol. 150, pp. 117–129. Springer, Heidelberg (2013)

    Google Scholar 

  9. Lehmann, D.-W.-I.S., Buxmann, P.D.P.: Pricing strategies of software vendors. Bus. Inf. Syst. Eng. 1(6), 452–462 (2009)

    Article  Google Scholar 

  10. Shapiro, C., Varian, H.R.: Information Rules: A Strategic Guide to the Network Economy. Harvard Business Press, Boston (1999)

    Google Scholar 

  11. Shipley, D., Jobber, D.: Integrative pricing via the pricing wheel. Ind. Mark. Manage. 30(3), 301–314 (2001)

    Article  Google Scholar 

  12. Soloviev, V.: Mathematical modeling of strategic commitments and piracy in Windows/Linux competition. In: 15th Annual Conference Proceedings., International Conference on Management Science and Engineering, ICMSE 2008, pp. 10–12. IEEE (2008)

    Google Scholar 

  13. Varian, H.R.: High-technology industries and market structure. University of California, Berkeley. 33 (2001)

    Google Scholar 

  14. Weitzel, T., Wendt, O., von Westarp, F.G., Konig, W.: Network effects and diffusion theory: Network analysis in economics. Int. J. IT Stan. Stand. Res. (IJITSR) 1(2), 1–21 (2003)

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Software and Innovation, Lappeenranta University of Technology, Skinnarilankatu 34, 53851, Lappeenranta, Finland

    Andrey Saltan, Uolevi Nikula & Ahmed Seffah

  2. Department of Information Systems in Economics, St. Petersburg State University, 7/9 Universitetskaya nab., 199034, St. Petersburg, Russia

    Andrey Saltan & Alexander Yurkov

Authors
  1. Andrey Saltan
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Uolevi Nikula
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Ahmed Seffah
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Alexander Yurkov
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Andrey Saltan .

Editor information

Editors and Affiliations

  1. Lappeenranta University of Technology, Lappeenranta, Finland

    Andrey Maglyas

  2. University of Limerick, Lero-The Irish Software Research Centre, Limerick, Ireland

    Anna-Lena Lamprecht

Rights and permissions

Reprints and permissions

Copyright information

© 2016 Springer International Publishing Switzerland

About this paper

Cite this paper

Saltan, A., Nikula, U., Seffah, A., Yurkov, A. (2016). A Dynamic Pricing Model for Software Products Incorporating Human Experiences. In: Maglyas, A., Lamprecht, AL. (eds) Software Business. ICSOB 2016. Lecture Notes in Business Information Processing, vol 240. Springer, Cham. https://doi.org/10.1007/978-3-319-40515-5_10

Download citation

Publish with us

Policies and ethics