Design Fields for Value-Based Pricing of Digital Products in the Manufacturing Industry

  • Pricing is one of the most important, but underestimated tools, to enhance a company's profitability. Especially value-based pricing has a high potential to reach higher levels of satisfaction because it equates the needs of providers and customers. Even though, it is a well-known price model and promises higher satisfaction, many companies struggle to implement it. Especially the manufacturing industry is characterized by cost-plus pricing and competition-based pricing. However, especially for digital products these pricing strategies are insufficient. Therefore, this paper aims at exploring the design fields for value-based pricing of digital products in the manufacturing industry. To achieve this, the basics of digital products and value-based pricing are explored. Furthermore, an expert workshop is conducted that follows a framework for value-based pricing consisting of four consecutive steps analysis, price strategy, pricing, and market launch to capture the design fields. This paper concludes with limitations, and practical and research implications.

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Author:Günther SchuhORCiDGND, Regina SchrankORCiD, Daniel Wentzel, Lennard HolstGND
Document Type:Conference Proceeding
Date of Publication (online):2023/12/04
Date of first Publication:2023/12/04
Release Date:2024/02/01
Tag:03; rev
design fields; digital products; manufacturing industry; value-based pricing
Name of the conference:2023 IEEE International Conference on Engineering, Technology and Innovation (ICE/ITMC)
place of the conference:Edinburgh
Date of the conference:19-22 June 2023
Institute / Department:FIR e. V. an der RWTH Aachen