Pricing of Value Bundles - A Multi-Perspective Decision Support Approach

  • Jörg Becker European Research Center for Information Systems (ERCIS) University of Münster
  • Daniel Beverungen European Research Center for Information Systems (ERCIS) University of Münster
  • Ralf Knackstedt European Research Center for Information Systems (ERCIS) University of Münster
  • Oliver Müller European Research Center for Information Systems (ERCIS) University of Münster

Abstract

Value bundles are compositions of physical goods and related value-added services that are put together to solve customer problems. Pricing value bundles constitutes a complex decision problem, since it requires the consideration of three perspectives: From the point of view of the provider, the available price corridor is limited downward by the costs for engineering, marketing and delivering a value bundle. From the customer’s point of view, the upper limit of the price corridor is imposed by the expected customer value and corresponding willingness to pay. From a competitive perspective, the upper limit of the price corridor is marked by the price of a comparable competitor’s offer. To provide companies with sound decision support, an integrated multi-perspective modelling language that accounts for all three perspectives simultaneously is presented. Based on the developed modelling language, an integrated decision support tool, i.e., the pricing workbench, has been designed.
Published
2015-12-07
Section
Research Articles