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Chinese Journal of Management Science ›› 2024, Vol. 32 ›› Issue (10): 76-88.doi: 10.16381/j.cnki.issn1003-207x.2021.2044

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The Sales Model and Pricing Strategy of Software Enterprise

Huafeng Du1,2,Zhenzhong Guan1(),Jianbiao Ren3   

  1. 1.School of Economics and Management, Southwest Jiaotong University, Chengdu 610031, China
    2.Service Science and Innovation Key Laboratory of Sichuan Province, Chengdu 610031, China
    3.Antai College of Economics & Management, Shanghai Jiaotong University, Shanghai 200052, China
  • Received:2021-10-09 Revised:2022-05-15 Online:2024-10-25 Published:2024-11-09
  • Contact: Zhenzhong Guan E-mail:zzguan@swjtu.cn

Abstract:

In the face of old and new versions of software, strategic consumers not only choose the best time and type of products to buy over time, but also consider the costs of using the new software due to a series of compatibility problems, which poses a huge threat to corporate profits. Therefore, aiming at the optimal decision-making problem of software enterprise under the influence of consumers' internal preference and use costs, we consider the generally popular two-period game. From the two-dimensional perspective of sales model and discrimination strategy, four dynamic game models of inter-temporal discrimination strategy and mixed discrimination strategy are constructed under the sales model or the subscription model, respectively. Then, backward induction is used to solve the game models in four different situations, and on that basis, the optimal marketing strategy combinations and implementation conditions for software company are compared and analyzed. Finally, Maple 2021 is used to verify the validity of the relevant propositions and conclusions. Through model construction and analysis, some interesting management insights are obtained. First of all, when the consumer's use costs are small, the mixed discrimination strategy is superior under the selling model, while the inter-temporal discrimination strategy is superior under the subscription model. Second, the optimal selling model under the inter-temporal discrimination strategy is related to the consumer's use costs, while the subscription model under the mixed discrimination strategy is always superior to the selling model. Finally, the effect of inter-temporal discrimination strategy on alleviating consumers' delayed purchase behavior varies across sales models. To sum up, software enterprise should adjust business strategies according to the changing circumstances and help to enhance the new marketing potential. In addition to the consumers’ internal and external factors, the degree of quality difference and the type of discrimination strategy are also the key factors to improve profitability. At the same time, there is an interaction between the discrimination strategy and the sales model. Therefore, the enterprise also needs to fully consider the decision-making order of both. In addition, in the price-setting process, enterprise should take into account operating conditions (such as the type of products and their degree of popularity, discriminatory strategies and sales models, etc.) and market conditions (such as whether consumer preferences are benign and the future development potential of the market) and other aspects of the decision-making.

Key words: strategic consumers, use costs, discrimination strategy, sales model, dynamic pricing

CLC Number: