Abstract

An appropriate pricing strategy is inevitable in achieving competitive advantage; however, firms have to be aware of the key resources needed for successful pricing and invest in developing the firm’s pricing ability. Pricing of digital goods and services is especially challenging due to the high-volatility environments and the special characteristics that these offerings have as compared to other economic goods. Despite of its importance, the literature, to date, did not investigate the pricing of digital goods and services from the resource-based perspective (RBW) and the capability-based view (CBV). After conducting a multi-case study of five firms, this research provides an in-depth view on the pricing practices of digital goods and services through the theoretical lenses of RBV and CBV and proposes a model that captures the key activities and the key resources needed for pricing of digital goods and services.

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