Pricing Information Goods

1. Lock-IN

1.1. Initial discounts or deals (limited time offers) that are offered for new customers

1.1.1. Deal is so attractive that consumers refuse to switch products, dependent on that discount.

2. Price Sensitivity

2.1. Consumers are unlikely to pursue products outside of their budget or price range

2.1.1. Producers with a product aimed at a specific demographic must be aware of that demographic's price concerns.

3. Personalized Pricing

3.1. Using purchasing history and trends to target specific consumers, and provide a price that's right for them

3.1.1. Online markets can use browsing history, and social media activity to specify prices and markets

4. Cost Leadership

4.1. Being the dominant price in the market among competing products. First and most attractive price has an advantage.

4.1.1. Forces producers to research pricing trends, and find a price which benefits consumers as much as it benefits them.

5. The Cost Of Producing Information

5.1. Expensive to initially produce, successive production is cheaper.

5.1.1. Marketing/promotion, sunk costs(non-recoverable costs), and initial research and legal costs

6. Group Pricing

6.1. Tailors the price to a group of consumers, or stets specific price tiers for groups.

6.1.1. Encourages engagement, and forming of communities which further promote the product

7. Versioning

7.1. Present different versions of the product and let the consumers choose the version that is best for them.

7.1.1. Online rental services such as Netflix implement a version of this, with their pricing tiers.