Profit Model Three: Combined Pricing

Chapter
Part of the SpringerBriefs in Business book series (BRIEFSBUSINESS)

Abstract

A profit model comprises profit source and pricing mode. Each one of the five modes can be adopted for a group of consumers and a product. In many cases, a company sells multiple products to several groups of customers. IBM may sell servers, software and consulting services to an SME (Small and medium enterprises), and a periodical might be distributed to libraries, companies and individuals. The way in which different pricing models maximally yield profits tests the wisdom of a company, and effectively combining models forms a key component of economic and managerial logic.

Keywords

Price Model High Fixed Cost Profit Model Music Download Consumption Capability 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Reference

Copyright information

© The Author(s) 2013

Authors and Affiliations

  1. 1.HSBC Business SchoolPeking UniversityShenzhenPeople’s Republic of China
  2. 2.Finance Department, School of EconomicsTsinghua UniversityBeijingPeople’s Republic of China

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