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UKSim 2009: 11th International Conference on Computer Modelling and Simulation
Development of Value-Based Pricing Model for Software Services
March 25-March 27
ISBN: 978-0-7695-3593-7
In an effort to improve profits, most contemporarybusinesses are implementing operational cost basedengineering initiatives and measures for pricingservices. However, service provision requires businessexecutives to have a comprehensive understanding ofthe meaning of ‘value’ as a guide to strategically priceservices in order to improve profitability. This papermakes an effort to present a theory of value – as acustomer prerogative of service utilisation. Theresearch aims at developing a pricing model to utilise,communicate and capture the value of a serviceprovided by a service provider. It takes a newapproach of focusing on the external value asperceived by the customer and advocate matchingprice to value. The paper helps both; the customersand the service providers to achieve business growthby commanding the right price for the softwareservices. The ultimate goal is to match the price thecustomer pays for a service expected to deliveroutstanding value.
Index Terms:
Software Services, Pricing models
Citation:
Ashish Kamdar, Alessandra Orsoni, "Development of Value-Based Pricing Model for Software Services," uksim, pp.299-304, UKSim 2009: 11th International Conference on Computer Modelling and Simulation, 2009
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