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The Pricing Decision Process in Software-as-a-Service Companies
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
2015 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

This study examines various approaches used by companies providingsoftware-as-a-service (SaaS) in a business-to-business (B2B) environment to find a pricing strategy. To be able to meet competition in a global market, a good pricing strategy is vital. Pricing is an important part of marketing, which must be congruent with the company's overall objectives. Strategic pricing is made up of different factors represented in the strategic pricing pyramid, which is based on a value-based approach. It is paramount to know your customers and their preferences when designing a pricing strategy and selecting pricing models, price metrics, market segmentation, bundling, and price levels. After having estimated how much value a product or service creates for a customer, this must be communicated to potential customers in order to convince them to purchase your offering. Choosing the right pricing strategy is not a onetime occurrence, but an on-going process. In this qualitative study, three case studies are performed to tie theory to real world practise.

Place, publisher, year, edition, pages
2015. , 31 p.
Keyword [en]
software-as-a-service pricing, business-to-business marketing, value-based pricing, strategic pricing pyramid, pricing strategy, pricing decision-making, customer value, pricing models, decision model, pricing decision process
National Category
Business Administration
URN: urn:nbn:se:uu:diva-276464OAI: oai:DiVA.org:uu-276464DiVA: diva2:903095
Subject / course
Business Studies
Educational program
Systems in Technology and Society Programme
Available from: 2016-02-16 Created: 2016-02-13 Last updated: 2016-02-16Bibliographically approved

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