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The logic of revenue logic? Strategic and operational levels of pricing in the context of software business

Authors
Journal
Technovation
0166-4972
Publisher
Elsevier
Publication Date
Volume
29
Issue
5
Identifiers
DOI: 10.1016/j.technovation.2008.10.009
Keywords
  • Revenue Logic
  • Revenue Model
  • Software Industry
  • Pricing Strategy

Abstract

Abstract The purpose of this study is to examine the relationship between pricing and business strategy in the software industry. The interplay between revenue logic, revenue model, and business-model concepts is investigated. Revenue-logic analysis consists of evaluating software industry-level determinants and exploring alternative pricing principles and revenue models affecting revenue generation. The qualitative analysis is based on 23 interviews with Finnish software company representatives, and the results indicate that strategic and operational levels of pricing are strongly intertwined.

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