Chapter 10 – Pricing Considerations in High-Tech Markets

Chapter Features

The chapter includes a wide variety of high-tech examples to support the chapter content, including:

•    The pricing of the first Apple iPhone
•    Pricing strategies for alternative energy/fuels, including solar energy technology (based on cost efficiencies and economies of scale), and other new technologies (RFID chips, software-as-a-service)
•    Toyota’s cost advantages in manufacturing hybrid cars, and how those are a source of competitive advantage
•    Comparing pricing of a “total cost of ownership” to a licensing strategy for CRM software
•    RightNow’s approach to pricing CRM on-demand software (software as a service, or SAAS)
•    Revenue models for “free” services (voice-over-Internet-protocol software such as Skype;
•    Technology Solutions to Global Problems: The New Public Call Office:  Orascom Telecom/Algeria; and Nokia’s sales to base-of-the-pyramid markets

Sneak Peek at Chapter Content

How can high-tech companies manage pricing strategy in light of the extreme downward pressure on prices in high-tech markets?
How do prices of existing generation technologies affect the demand for new generation technologies?
How do high-tech companies bring a customer orientation to their pricing strategies?
When should companies maintain high-end/high-price strategies?
What are the effects of price promotions on high-tech companies?
Listing of Chapter topics from the Table of Contents