Pricing Strategy for Service Start-ups: How to Employ Access and Usage Fee?
Pricing is especially important for products consumed in multiple units, because not only does the firm need to set a price point, but it also needs to pick a pricing scheme and balance between charging for access to the service and for each unit used. This paper defines new guidelines for helping firms pick the right pricing scheme based on the nature of heterogeneity in buyers’ consumption levels and valuations for the product.
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