Profit Model Three: Combined Pricing

Wei Wei, Wuxiang Zhu and Guiping Lin ()
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Wei Wei: Peking University
Wuxiang Zhu: Tsinghua University
Guiping Lin: Peking University

Chapter Chapter 7 in Approaching Business Models from an Economic Perspective, 2013, pp 79-85 from Springer

Abstract: Abstract A profit model comprises profit source and pricing mode. Each one of the five modes can be adopted for a group of consumers and a product. In many cases, a company sells multiple products to several groups of customers. IBM may sell servers, software and consulting services to an SME (Small and medium enterprises), and a periodical might be distributed to libraries, companies and individuals. The way in which different pricing models maximally yield profits tests the wisdom of a company, and effectively combining models forms a key component of economic and managerial logic.

Keywords: Price Model; High Fixed Cost; Profit Model; Music Download; Consumption Capability (search for similar items in EconPapers)
Date: 2013
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DOI: 10.1007/978-3-642-31023-2_7

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