BU479 Lecture Notes - Lecture 8: Freemium, Backward Compatibility, Software As A Service
Document Summary
Forces on high tech pricing decisions the introductions are so new that you already need to be at the next product thus it takes a lot of time and money. Investments in r&d: backward compatibility of derivative products: xbox example, want to take into account when you decide on your actual price and pricing strategy. If you don"t consider one of the three legs your pricing strategy wont be steady and you will fail. Monetization models: subscription model: pay a fee every week or month regardless of the use period, dynamic pricing: will charge different price based on market conditions (supply and demand) ex. If you"re going to increase pricing tell the customers: experiment with pricing. The customer is providing data where they can begin paying with data to provide better ideas for future products, etc. Differentiate offerings: have agility and speed in getting to market, find new revenues streams fine new use for existing products.
