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Proceedings ArticleDOI

Services Pricing through Business Value Modeling and Analysis

Wei Ding1
09 Jul 2007-pp 380-386
TL;DR: A feasible value based pricing method is proposed that can lead to higher profits and more- satisfied customers than possible with uniform pricing.
Abstract: The service sector is the dominant part of the economy, and yet services pricing is not well studied. The pricing of services, especially IT services, differs from the pricing of products to a certain extent. This paper proposes a feasible value based pricing method. The pricing process includes: business value modeling and analysis, customer segmentation, and fully distributed cost pricing. A practical case is presented to show the applicability of the new pricing method. The pricing solution followed the proposed methodology can lead to higher profits and more- satisfied customers than possible with uniform pricing.
Citations
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01 Jan 2002

9,314 citations

01 Jan 2001
TL;DR: Some of the technology and costs relevant to pricing access to the Internet are described and a possible smart-market mechanism for pricing traffic on the Internet is suggested.
Abstract: This is a preliminary version of a paper prepared for the conference ‘‘Public Access to the Internet,’’ JFK School of Government, May 26--27 , 1993. We describe some of the technology and costs relevant to pricing access to the Internet and suggest a possible smart-market mechanism for pricing traffic on the Internet.

231 citations

Journal ArticleDOI
TL;DR: Government intervention is required to reduce the potential for exploitation by sellers (or buyers) by regulating how goods, services and labour are used, priced or distributed within monopsonistic health service providers such as the UK NHS.
Abstract: Within a free market economy, the ‘invisible hand of the price mechanism’ operates such that suppliers allocate resources in response to consumer demand. However, where a market is distorted, prices can have adverse effects on welfare and efficiency, and government intervention is required to reduce the potential for exploitation by sellers (or buyers) by regulating how goods, services and labour are used, priced or distributed. This is the case for monopolistic suppliers of patent-protected, branded medicines, operating within monopsonistic health service providers such as the UK NHS. The Pharmaceutical Price Regulation Scheme (PPRS) was established not long after the NHS itself and has the explicit aim of ensuring ‘‘that the interests of patients, the NHS, the industry and the taxpayer

61 citations


Cites background from "Services Pricing through Business V..."

  • ...This created the possibility to conduct my research on a global scale and researching different customer segments, which was important because customer perceived value differs between segments (Ding, 2007; Hinterhuber, 2008b; Nagle et al., 2011; Ulaga & Chacour, 2001; Hinterhuber, 2004; Harmon et al., 2009)....

    [...]

  • ...Then again, customer perceived value differs between segments and distinctive corporations (Ding, 2007; Hinterhuber, 2008b; Nagle et al., 2011; Ulaga & Chacour, 2001; Hinterhuber, 2004)....

    [...]

  • ...In addition, the price and value of competitive offerings have to be taken into account (Hinterhuber, 2008b; Ulaga & Chacour, 2001; Nagle et al., 2011; Hinterhuber, 2004; Ding, 2007)....

    [...]

  • ...Nähring, 2011 18 (4) Segments – different customer segments and perhaps even distinctive corporations might have dissimilar value perceptions as they use the product or service in distinctive ways (Ding, 2007; Hinterhuber, 2008b; Nagle et al., 2011; Ulaga & Chacour, 2001; Hinterhuber, 2004; Harmon et al., 2009)....

    [...]

  • ...Moreover, value-based pricing is highly applicable to services (Ding, 2007)....

    [...]

Posted Content
01 Jan 1986
TL;DR: In this article, the authors present a unified and simplified exposition of the modern theory of efficient pricing which is not available elsewhere, supplemented by numerical simulation comparing Fully Distributed Cost Pricing, Ramsey Pricing, and Optimal Non-uniform Pricing.
Abstract: Debate about deregulation has focused considerable attention on the pricing policies of public utilities. Much work has been done by economists on this subject, and in this book the results of that research are presented and made accessible to students of economics. The main subject is the policy to be followed by a regulated monopoly, but the analysis is broadened to take account of a fringe of competitive suppliers, making it relevant to electric utilities and local telephone companies in the US, to PTT's in Europe, to the possible privatisatibn of telecommunications in Australia, and to the telecommunications structure in the UK where the dominant supplier has recently been privatised. The book gives a unified and simplified exposition of the modern theory of efficient pricing which is not available elsewhere. The theoretical discussion is supplemented by numerical simulation comparing Fully Distributed Cost Pricing, Ramsey Pricing, and Optimal Non-uniform Pricing.

32 citations

01 Jan 2008
TL;DR: In this article, the authors present a framework that allows us to orchestrate web services such that the web services involved in this orchestration interact properly, and define a number of rules to incrementally compute the price of such a properly interacting orchestration.
Abstract: In this paper, we present a framework that allows us to orchestrate web services such that the web services involved in this orchestration interact properly. To achieve this, we predefine service interfaces and certain routing constructs. Furthermore, we define a number of rules to incrementally compute the price of such a properly interacting orchestration (i.e. a web service) from the price of its web services. The fact that a web service gets only payed after its service is delivered (no-cure-no-pay) is reflected by considering a probability of success. To determine a safe price that includes the risk a web service takes, we consider the variance of costs.

7 citations

References
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Book
08 Sep 2000
TL;DR: This book presents dozens of algorithms and implementation examples, all in pseudo-code and suitable for use in real-world, large-scale data mining projects, and provides a comprehensive, practical look at the concepts and techniques you need to get the most out of real business data.
Abstract: The increasing volume of data in modern business and science calls for more complex and sophisticated tools. Although advances in data mining technology have made extensive data collection much easier, it's still always evolving and there is a constant need for new techniques and tools that can help us transform this data into useful information and knowledge. Since the previous edition's publication, great advances have been made in the field of data mining. Not only does the third of edition of Data Mining: Concepts and Techniques continue the tradition of equipping you with an understanding and application of the theory and practice of discovering patterns hidden in large data sets, it also focuses on new, important topics in the field: data warehouses and data cube technology, mining stream, mining social networks, and mining spatial, multimedia and other complex data. Each chapter is a stand-alone guide to a critical topic, presenting proven algorithms and sound implementations ready to be used directly or with strategic modification against live data. This is the resource you need if you want to apply today's most powerful data mining techniques to meet real business challenges. * Presents dozens of algorithms and implementation examples, all in pseudo-code and suitable for use in real-world, large-scale data mining projects. * Addresses advanced topics such as mining object-relational databases, spatial databases, multimedia databases, time-series databases, text databases, the World Wide Web, and applications in several fields. *Provides a comprehensive, practical look at the concepts and techniques you need to get the most out of real business data

23,600 citations

01 Jan 2002

9,314 citations

Book
01 Jan 1920
TL;DR: Aslanbeigui et al. as mentioned in this paper discussed the relationship between the national dividend and economic and total welfare, and the size of the dividend to the allocation of resources in the economy and the institutional structure governing labor market operations.
Abstract: The Economics of Welfare occupies a privileged position in economics. It contributed to the professionalization of economics, a goal aggressively and effectively pursued by Pigou's predecessor and teacher Alfred Marshall. The Economics of Welfare also may be credited with establishing welfare economics, by systematically analyzing market departures and their potential remedies. In writing The Economics of Welfare, Pigou built a bridge between the old and the new economics at Cambridge and in Britain. Much of the book remains relevant for contemporary economics. The list of his analyses that continues to play an important role in economics is impressive. Some of the more important include: public goods and externalities, welfare criteria, index number problems, price discrimination, the theory of the firm, the structure of relief programs for the poor, and public finance. Pigou's discussion of the institutional structure governing labor-market operations in his Wealth and Welfare prompted Schumpeter to call the work "the greatest venture in labor economics ever undertaken by a man who was primarily a theorist." The Economics of Welfare established welfare economics as a field of study. The first part analyzes the relationship between the national dividend and economic and total welfare. Parts II and III link the size of the dividend to the allocation of resources in the economy and the institutional structure governing labor-market operations. Part IV explores the relationship between the national dividend and its distribution. In her new introduction, Nahid Aslanbeigui discusses the life of Pigou and the history of The Economics of Welfare. She also discusses Pigou's theories as expressed in this volume and some of the criticisms those theories have met as well as the impact of those criticisms. The Economics of Welfare is a classic that repays careful study.

5,145 citations

Book
01 Jan 1986
TL;DR: In this article, the authors present seven chapters with separate appendices for the purposes of mathematics and formal derivation to five of these, (i.e., there are appendices to all but the two introductory chapters).
Abstract: This book contains seven chapters, with separate appendices for the purposes of mathematics and formal derivation to five of these, (i.e. there are appendices to all but the two introductory chapters). There is also a very short preface, a list of references and a subject/author index. The two introductory chapters provide an overview of the subject matter and the basic relevant economic principles respectively. Chapter Three brings in the basics of welfare and economic efficiency pricing, followed by two rather solid chapters on non-uniform pricing. Chapter Six is a very technical chapter considering interactions between customers and, to a limited extent, between customers and the utility (stopping well short of spot pricing). Chapter Seven brings the reader back to earth by advising the public utility policy-maker how to adopt practical yet efficient prices.

390 citations

01 Jan 2001
TL;DR: Some of the technology and costs relevant to pricing access to the Internet are described and a possible smart-market mechanism for pricing traffic on the Internet is suggested.
Abstract: This is a preliminary version of a paper prepared for the conference ‘‘Public Access to the Internet,’’ JFK School of Government, May 26--27 , 1993. We describe some of the technology and costs relevant to pricing access to the Internet and suggest a possible smart-market mechanism for pricing traffic on the Internet.

231 citations