Pricing of Value Bundles - A Multi-Perspective Decision Support Approach

Abstract

Value bundles are compositions of physical goods and related value-added services that are put together to solve customer problems. Pricing value bundles constitutes a complex decision problem, since it requires the consideration of three perspectives: From the point of view of the provider, the available price corridor is limited downward by the costs for engineering, marketing and delivering a value bundle. From the customer’s point of view, the upper limit of the price corridor is imposed by the expected customer value and corresponding willingness to pay. From a competitive perspective, the upper limit of the price corridor is marked by the price of a comparable competitor’s offer. To provide companies with sound decision support, an integrated multi-perspective modelling language that accounts for all three perspectives simultaneously is presented. Based on the developed modelling language, an integrated decision support tool, i.e., the pricing workbench, has been designed.