Innovative pricing

by Jonason, Andreas

The rapid advance in technology, notably computing and communications technology (C & C), has meant that products of an increasingly intangible nature are being developed. Digital products are often being substituted for hardware products and are growing in dimensionality and complexity. This creates a problem for firms having to decide how to charge for such complex products, parts of which being easily accessible for free. Firms are, therefore, reaching for new methods of pricing to capture the value of their products, thus introducing bundling and pricing combinations not thought of previously to be able to capture a satisfactory value for the total product. Pricing then becomes an act of innovation. This thesis addresses this aspect of strategy under the name Innovative Pricing (IP). JEL classification: O31; D81; L96; M21