Consumer surplus for software products can be calculated differently from other products. Customers tend to buy products with greater consumer surplus. Software companies should know what measure in their market analysis to determine their consumer surplus so that create products that are better at fulfilling their customers. Messerschmitt and Szyperski have studied what factors affect the perceived consumer surplus in the software product market. The value a customer places on software is affected by things such as compatibility with complementary products, degree of adoption in the market, usability, increases in productivity, differentiation from competitors, and innovativeness. These can be customer satisfaction dimensions.
On the other hand, many things affect the total cost of ownership of software products besides price. These include implementation, training, management, and operations costs. Additionally, switching costs to competitors play a role because customers may fear that the vendor may discontinue the product or go out of business. These authors suggest that the price of software should be based on its consumer surplus. Pricing strategies can be used to gain the most revenue such as product bundling, forming separable modules, and price discrimination with product variants and target groups. (2004) Calculations of consumer surplus is one way that software firms can keep track of their perception by customers in an integrative way.
ReferencesEdit
Messerschmitt, D. G. and C. Szyperski. “Marketplace Issues in Software Planning and Design.” IEEE Software. Volume: 21, Issue: 3 (May/June 2004), pp:62-70.
October 18, 2023
consumer, surplus, software, products, this, article, multiple, issues, please, help, improve, discuss, these, issues, talk, page, learn, when, remove, these, template, messages, this, article, needs, additional, citations, verification, please, help, improve,. This article has multiple issues Please help improve it or discuss these issues on the talk page Learn how and when to remove these template messages This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Consumer surplus for software products news newspapers books scholar JSTOR December 2013 Learn how and when to remove this template message This article provides insufficient context for those unfamiliar with the subject Please help improve the article by providing more context for the reader July 2019 Learn how and when to remove this template message Learn how and when to remove this template message Consumer surplus for software products can be calculated differently from other products Customers tend to buy products with greater consumer surplus Software companies should know what measure in their market analysis to determine their consumer surplus so that create products that are better at fulfilling their customers Messerschmitt and Szyperski have studied what factors affect the perceived consumer surplus in the software product market The value a customer places on software is affected by things such as compatibility with complementary products degree of adoption in the market usability increases in productivity differentiation from competitors and innovativeness These can be customer satisfaction dimensions On the other hand many things affect the total cost of ownership of software products besides price These include implementation training management and operations costs Additionally switching costs to competitors play a role because customers may fear that the vendor may discontinue the product or go out of business These authors suggest that the price of software should be based on its consumer surplus Pricing strategies can be used to gain the most revenue such as product bundling forming separable modules and price discrimination with product variants and target groups 2004 Calculations of consumer surplus is one way that software firms can keep track of their perception by customers in an integrative way References EditMesserschmitt D G and C Szyperski Marketplace Issues in Software Planning and Design IEEE Software Volume 21 Issue 3 May June 2004 pp 62 70 Retrieved from https en wikipedia org w index php title Consumer surplus for software products amp oldid 1155314949, wikipedia, wiki, book, books, library,
