Journal of Revenue and Pricing Management

, Volume 11, Issue 2, pp 210–224 | Cite as

Dynamic pricing strategy for subscription-based information goods

  • Dong-Qing Yao
  • Ziping Wang
  • Samar K Mukhopadhyay
  • Yu Cong
Research Article

Abstract

In this article, we study an IT company that rolls out a new information product to individual customers with a certain expected length of life cycle. The company needs to dynamically price the product at each stage in order to maximize its revenue. We analyze its pricing strategy, considering the renewal rate is either constant or updated during each period. The effects of important parameters on total revenue and corresponding managerial insights are also presented with numerical illustrations.

Keywords

information goods subscription-based pricing dynamic programming renewal rate 

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Copyright information

© Palgrave Macmillan, a division of Macmillan Publishers Ltd 2010

Authors and Affiliations

  • Dong-Qing Yao
    • 1
  • Ziping Wang
    • 2
  • Samar K Mukhopadhyay
    • 3
  • Yu Cong
    • 4
  1. 1.College of Business and Economics, Towson UniversityMarylandUSA
  2. 2.School of Business, University of BridgeportConnecticutUSA
  3. 3.SungKyunKwan University, GSBKorea
  4. 4.School of Business & Management, Morgan State UniversityMarylandUSA

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