Management Science and Engineering
The Research of The Pricing Strategy of New Market Entrants Entering Market
Abstract
First of all, based on the summary of the development of SaaS, this paper takes the free trial strategy as the entry point, and takes the market share and market price as the decision points, the strategy model of market new entrants’ optimal pricing and the market entry strategy model are discussed under the two dimensions of space and time. On the model side, the hotelling-based model expands the strategy of free strategy, supplier and consumer sustainable expectations-oriented pricing strategies. New entrants with low product quality consider from a short-term perspective to enter at high prices, relying on free strategies to accumulate market share, and provide space for subsequent price cuts. New entrants with high product quality enter at low prices, increase conversion rate through free trials, and stabilize the market with brand effect.
Keywords
Full Text:
PDFReferences
Cheng, H. K., & Koehler, G. J. (2003). Optimal pricing policies of web-enabled application services. Decision Support Systems, 35(3), 259-272.
Ma, D., & Seidmann, A. (2008). The pricing strategy analysis for the “software-as-a-service” business model. International Workshop on Grid Economics and Business Models. Springer, Berlin, Heidelberg.
Cochrane, T , Shah S , Murphy J , et al. (2014). How SaaS providers can use pricing to achieve their ambitions. Bain & Company.
Kauffman, R. J., & Ma, D. (2013). Cost Efficiency strategy in the software-as-a-service market: Modeling results and related implementation issues. International Conference on Grid Economics and Business Models. Springer, Cham.
Fishburn, P. C., & Odlyzko, A. M. (1999). Competitive pricing of information goods: Subscription pricing versus pay-per-use. Economic Theory, 13(2), 447-470.
Ma, D., & Kauffman, R. J. (2014). Competition between software-as-a-service vendors. IEEE Transactions on Engineering Management, 61(4), 717-729.
Dan, M., & Seidman, A. (2008). The pricing strategy analysis for the software-as-a-service business model. Grid Economics & Business Models, International Workshop, Gecon, Las Palmas De Gran Canaria, Spain, August. DBLP.
Fan, M., Kumar, S., & Whinston, A. B. (2009). Short-term and long-term competition between providers of shrink-wrap software and software as a service. European Journal of Operational Research, 196(2), 661-671.
Yan, J. Y., Guo, H. L., & Ji, Y. (2013). Software provider competition game model based on the difference between transfer cost and quality cost: SaaS vs. SWS. Soft Science, 27(2), 127-131.
Guo, H. L., & Yan, J. Y. (2016). Competition model based on SWS customization software implementation cycle and SaaS standardized software types. Systems Engineering, (11), 135-142.
Guo, H. L., & Yan, J. Y. (2015). Software provider competition strategy based on Stackelberg game: SaaS vs. SWS. Industrial Engineering, (4).
Wang, Y. C., Yue, L., Kang, Z. L., et al. (2012). Hot spot analysis of SaaS domestic research based on word frequency statistical analysis method. Journal of Information, 31(7), 44-48.
Guo, Y. L., Yan, J. Y., & Chen, J. B. (2012). Research on pricing model of online software service based on SaaS. Economic Issues, (6), 47-50.
Wu, S. L., Zhong, Q., Wortmann, H., et al. (2018). Research on price discrimination elements for SaaS model. Journal of Industrial Engineering and Engineering Management, 32(04), 214-223.
DOI: http://dx.doi.org/10.3968/11018
Refbacks
- There are currently no refbacks.
Copyright (c) 2020 Management Science and Engineering
This work is licensed under a Creative Commons Attribution 4.0 International License.
Share us to: 
Reminder
We are currently accepting submissions via email only.
The registration and online submission functions have been disabled.
Please send your manuscripts to mse@cscanada.net，or mse@cscanada.org for consideration.
We look forward to receiving your work.
We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases:
caooc@hotmail.com; mse@cscanada.net; mse@cscanada.org
Articles published in Management Science and Engineering are licensed under Creative Commons Attribution 4.0 (CC-BY).
MANAGEMENT SCIENCE AND ENGINEERING Editorial Office
Address:1055 Rue Lucien-L'Allier, Unit #772, Montreal, QC H3G 3C4, Canada.
Telephone: 1-514-558 6138
Http://www.cscanada.net Http://www.cscanada.org
Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures 
