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Pricing Strategies of Software Vendors

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Due to the economic characteristics specific to the software industry, pricing concepts existing in other industries cannot be transferred without adaptation. Therefore, this article provides an overview of pricing models for software. In this context we discuss the six parameters formation of prices, structure of payment flow, assessment base, price discrimination, price bundling, and dynamic pricing strategies. Furthermore, we refer to recent software delivery models, such as Software as a service. The results are based on literature research and empirical studies. Copyright Gabler Verlag 2009

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  • Sonja Lehmann & Peter Buxmann, 2009. "Pricing Strategies of Software Vendors," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 1(6), pages 452-462, December.
    • Handle: RePEc:spr:binfse:v:1:y:2009:i:6:p:452-462
    DOI: 10.1007/s12599-009-0075-y
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    Cited by:

    1. Jian Pei, 2020. "A Survey on Data Pricing: from Economics to Data Science," Papers 2009.04462, arXiv.org, revised Nov 2020.
    2. Ali Azadeh & Hassan Songhori & Nima Salehi, 2017. "A unique optimization model for deterministic bundle pricing of two products with limited stock," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 8(2), pages 1154-1160, November.
    3. Jhih-Hua Jhang-Li & Cheng-Wei Chang, 2017. "Analyzing the operation of cloud supply chain: adoption barriers and business model," Electronic Commerce Research, Springer, vol. 17(4), pages 627-660, December.
    4. Arne Katzmarzik, 2011. "Product Differentiation for Software-as-a-Service Providers," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 3(1), pages 19-31, February.
    5. Frank Bodendorf & Manuel Lutz & Jörg Franke, 2021. "Valuation and pricing of software licenses to support supplier–buyer negotiations: A case study in the automotive industry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(7), pages 1686-1702, October.
    6. In Lee, 2019. "Pricing schemes and profit-maximizing pricing for cloud services," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 18(2), pages 112-122, April.
    7. Sunil Tiwari & Joanna Rosak-Szyrocka & Justyna Żywiołek, 2022. "Internet of Things as a Sustainable Energy Management Solution at Tourism Destinations in India," Energies, MDPI, vol. 15(7), pages 1-20, March.
    8. Manish Gangwar & Hemant K. Bhargava, 2023. "Pricing on‐demand services: Alternative ways of combining usage and access fees," Production and Operations Management, Production and Operations Management Society, vol. 32(1), pages 11-27, January.
    9. Juthasit Rohitratana & Jorn Altmann, 2012. "Impact of Pricing Schemes on a Market for Software-as-a-Service and Perpetual Software," TEMEP Discussion Papers 201288, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Mar 2012.
    10. Larbig, Christine & Hottiger, Dieter, 2016. "Value-based-Pricing für Software in der Praxis," Marketing Review St.Gallen, Universität St.Gallen, Institut für Marketing und Customer Insight, vol. 33(6), pages 76-83.
    11. Radoslaw R. Okulski & Almas Heshmati, 2010. "Time Series Analysis of Global Airline Passengers Transportation Industry," TEMEP Discussion Papers 201065, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jul 2010.
    12. Benedikt Martens & Frank Teuteberg, 2012. "Decision-making in cloud computing environments: A cost and risk based approach," Information Systems Frontiers, Springer, vol. 14(4), pages 871-893, September.
    13. Christoph Burkard & Thomas Widjaja & Peter Buxmann, 2012. "Software Ecosystems," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 4(1), pages 41-44, February.
    14. Thomas Koslowski & Jens Strüker, 2011. "ERP On Demand Platform," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 3(6), pages 359-367, December.
    15. Hajji, Adnéne & Pellerin, Robert & Léger, Pierre-Majorique & Gharbi, Ali & Babin, Gilbert, 2012. "Dynamic pricing models for ERP systems under network externality," International Journal of Production Economics, Elsevier, vol. 135(2), pages 708-715.

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