Value-based Pricing for New Software Products free essay sample

Pricing methods such as flat price, tiered pricing, MIPS-based, usage-based, per user, per seat, and pay as you go, are often tactical in nature and easily matched by competitors, which can undermine profitability by accelerating the commoditization process. Conversely, a value-based approach charges a price based on the customer’s perceived value of the benefits received. Value-based pricing methodologies can be used to estimate the market value of new software concepts at various stages of the development process in addition to pricing new products for launch.This paper describes a value-based approach to pricing that is dependent on the firm’s commitment to invest in the development of its long-term â€Å"pricing capital. † This investment in methodologies, infrastructure, and processes to create, measure, analyze, and capture customer value is the key to successful long-term pricing strategy. No tool in the marketing toolbox can increase sales or destroy dema nd more quickly than pricing strategy. We will write a custom essay sample on Value-based Pricing for New Software Products or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The pricing decision is one of the most critical decisions that a firm can make in the launch of a product.Managers in the software industry have traditionally developed their pricing strategies by overemphasizing cost-related criteria at the expense of focusing on the value of the product to the customer. Cost-based pricing strategies are focused on short-term value to the vendor. Conversely, value-based pricing is based on the customer’s perception of the value of the product, not on product costs (see Figure 1). Value-based pricing strategies are focused on creating long-term value for the customer.From a marketing perspective, the goal of pricing strategy is to assign a price that is the monetary equivalent of the value the customer perceives in the product while meeting profit and return on investment goals [37]. This paper posits the view that traditional cost-based approaches to software pricing are short-term, tactical in nature, and place the interests of the seller over the interests of the buyer. Conversely, pricing approaches based on customers’ perceptions of value are strategic and long-term in nature since they are focused on capturing unique value from each market segment through the pricing mechanism.

Easy Fairy Tale Essay Topics

Easy Fairy Tale Essay TopicsAlthough the fairy tale has become a well known story, there are still many people who do not know what the purpose of the essay is. Many adults even give the plot of the fairy tale as the main story line for the essay. The essay can be used to explore the many themes that the story can include. There are a lot of fairy tale themed essay topics.A theme for the fairy tale might be history, romance, humor, family, travel, or fantasy. This makes it easy to think about the topics when you read the fairy tale. These themes can be explored through the writing of the essay.History of the Fairy Tale: Most of the tales feature events that happened long ago. While this could be the basis for the essay, it can also be used to examine the past of the person writing the essay. This can also be used in connection with other essays and to help improve other essay topics.Romance of the Story: The theme of romance is often included in the fairy tale. This can be used in a romance themed essay that is not strictly fairy tale based. A good example of this is a romantic theme for a religion essay.Character of the Story: The theme of the character is also used in essay themes. It can be used to examine the character that is a main character in the story. It can also be used to examine the personality of the main character.Jest and Greed: The theme of jest and greed can be included in a fairy tale based essays. Jest and the romantic theme can be used in a humor essay. Greed can be used in a travel essay.Morality of the Fairy Tale: When students learn that there is more to the story than the romantic theme, they will explore the ethical issues in the fairy tale. This will allow them to consider moral dilemmas. This theme can be explored in essay themes that deal with childhood development, school growth, and high school.References to Original Sources: Since most of the stories are based on fact, the source should be used throughout the essay. This should b e made clear in the essay. The source should be used for the facts as well as the key words that make up the theme. The essay can cover a lot of information through the use of the entire essay and by using the original sources.