Nonlinear Pricing of Software with Local Demand Inelasticity

2020 ◽  
Vol 31 (4) ◽  
pp. 1224-1239
Author(s):  
Mingdi Xin ◽  
Arun Sundararajan

Nonlinear usage-based pricing is applied extensively in software markets. Customers of software products usually cannot vary their required usage volume, a property we label local demand inelasticity. For instance, a client firm that needs a sales force automation software either buys one user license for every salesperson or does not buy at all. It is unlikely to buy licenses for some but not all salespersons. This demand feature violates a critical assumption of the standard nonlinear pricing literature that consumers are flexible with their usage volume, and their valuation changes smoothly with usage volume. Consequently, standard nonlinear pricing solutions are inapplicable to many software products. This paper studies the optimal nonlinear usage-based pricing of software when customers' demand is locally inelastic. This unique demand feature necessitates a new approach to solve the nonlinear pricing problem. We show that under a weak ordering condition of customer types, this complex pricing problem can be decomposed into a set of much simpler subproblems with known solutions. Our pricing solution is easily implementable and applicable to a broad range of demand systems, including those described by the families of exponential and normal distributions. Moreover, local demand inelasticity has a critical impact on key efficiency results.

2019 ◽  
Vol 20 (3) ◽  
pp. 214-223
Author(s):  
Vivi Sahfitri

The sales process is the most important part of the product manufacturer or the company being ditributor. Conventional sales system by the way telephone or consumer come directly to know the available or not the product needed to make consumers should take the time to do that. Such conditions can also lead to consumer dissatisfaction especially if the desired item is unavailable. Dissatisfaction with customer service can affect the indication of declining sales turnover. For that, the company needs a website-based sales information system that can be accessed by consumers anytime and anywhere so that it can expand its marketing area, and can facilitate salespeople to conduct promotions to Community. This research produces the sales information system by implementing a sales Force Automation (SFA) method which is expected to maximize the sales and focus of services to customers.


2011 ◽  
Vol 6 (17) ◽  
pp. 3784-3793 ◽  
Author(s):  
Chen Cheng Wu ◽  
Tseng Chun Pin ◽  
Lee King Ling ◽  
Yang Han Chung

Economics ◽  
2015 ◽  
pp. 1541-1563
Author(s):  
Sergio Ricardo Mazini

This chapter presents an approach to the role of software engineering in developing solutions for new mobile technologies, like tablets. It discusses the importance of the new standards brought by emerging technologies such as engineering and how software must adapt to this new reality in order to identify the needs of data, information, integration, shares, and other issues that will contribute to the life cycle of these solutions. The chapter also discusses the contribution of users in the development process and improve these solutions. The research method is the case study conducted in industrial companies that use a digital catalog solution and sales force automation for tablets. This chapter presents a new approach based on commercial tablets which is supported by a platform of software and services called commercially Nimiam (www.nimiam.com.br).


Sisfo ◽  
2017 ◽  
Vol 06 (02) ◽  
pp. 213-230
Author(s):  
Janandra Aji Prayuda ◽  
◽  
Joko Lianto BulialiPublished  ◽  

2009 ◽  
pp. 2163-2168
Author(s):  
Cheon-Pyo Lee

As an increasing number of organizations and individuals are dependent on mobile technologies to perform their tasks, various mobile applications have been rapidly introduced and used in a number of areas such as communications, financial management, information retrieval, and entertainment. Mobile applications were initially very basic and simple, but the introduction of higher bandwidth capability and the rapid diffusion of Internet-compatible phones, along with the innovations in the mobile technologies, allow for richer and more efficient applications. Over the years, mobile applications have primarily been developed in consumer-oriented areas where products such as e-mail, games, and music have led the market (Gebauer & Shaw, 2004). According to the ARC group, mobile entertainment service will generate $27 billion globally by 2008 with 2.5 billion users (Smith, 2004). Even though mobile business (m-business) applications have been slow to catch on mobile applications for consumers and are still waiting for larger-scale usage, m-business application areas have received enormous attention and have rapidly grown. As entertainment has been a significant driver of consumer-oriented mobile applications, applications such as delivery, construction, maintenance, and sales of mobile business have been drivers of m-business applications (Funk, 2003). By fall of 2003, Microsoft mobile solutions partners had registered more than 11,000 applications including e-mail, calendars and contacts, sales force automation, customer relationship management, and filed force automation (Smith, 2004). However, in spite of their huge potential and benefits, the adoption of m-business applications appears much slower than anticipated due to numerous technical and managerial problems.


Author(s):  
Rishi Kalra ◽  
Amit Nanchahal

Marketing and sales channels are a significant lifeline for the sales force of a business. Sales professionals work on the concept of creating and widening channels that are then fed by the supply chain and distribution network of the businesses. Sales teams are constantly pushed to meet customer expectations while generating revenue for the company. As companies grow, these pressures increase. Sales teams are now looking at Mobile Sales Force Automation technologies to handle the ever increasing customer demands. Companies want to keep costs low, increase productivity and efficiency through mobile devices for the much needed edge on the field. This chapter is based on literature review of channel optimization as well as mobile software platforms and challenges faced by the sales force. This chapter discusses the need for integrating business software on mobile platforms that will optimize and enhance the performance of sales processes.


2011 ◽  
pp. 172-181 ◽  
Author(s):  
Andrew Stein ◽  
Paul Hawking

The global ERP industry blossomed in the 1990’s automating back office operations. The Australian ERP industry matched this global trend and has kept pace with the latest amalgam of front office applications including CRM, demand planning and sales-force automation being merged with the traditional ERP applications. ERP vendors are frantic in their attempts to ride the “E” wave whilst ERP customers struggle with the people, process and technology implications that ERP brings. This paper presents the preliminary results of an analysis of the Australian ERP market place. This study looks at the market movement and demographics of SAP, the dominant ERP vendor within the Australian marketplace.


2020 ◽  
Vol 91 ◽  
pp. 162-173
Author(s):  
Tommi Mahlamäki ◽  
Kaj Storbacka ◽  
Samuli Pylkkönen ◽  
Mika Ojala

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