Pricing of digital services as an effectual co-creative process
Karami, M., Ojala, A., & Laatikainen, G. (2022). Pricing of digital services as an effectual co-creative process. Technology Analysis and Strategic Management, Early online. https://doi.org/10.1080/09537325.2022.2088342
Published inTechnology Analysis and Strategic Management
DisciplineTietojärjestelmätiedeEmpirical Cyber Security and Software EngineeringInformation Systems ScienceEmpirical Cyber Security and Software Engineering
© 2022 the Authors
Entrepreneurs have to price their innovations under the unpredictability of customers’ reactions. While predictive pricing methods are prevalent in business-to-business pricing literature, we argue for the critical importance of control-oriented pricing strategies for digital services. By applying effectuation theory, our study investigates how entrepreneurs co-create their pricing strategies for their digital services as a co-evolutionary, iterative process with their customers. We found that pricing is the co-evolutionary process where entrepreneurs learn from their interactions with customers and use this knowledge to develop and improve their pricing practices further. The findings contribute to behavioural pricing literature by explaining pricing strategy formation as a co-creative process that focuses on interactions rather than predictive actions.
ISSN Search the Publication Forum0953-7325
Publication in research information system
MetadataShow full item record
Showing items with similar title or keywords.
A Personal Values-Based Approach to Understanding Users’ Co-Creative and Co-Destructive Gaming Experiences in Augmented Reality Mobile Games Elo, Jenny; Lumivalo, Juuli; Tuunanen, Tuure (Association for Information Systems, 2022)Background: Understanding how users evaluate their experiences has been recognized as being fundamental to designing services that meet the users’ needs and support the emergence of positive rather than negative value ...
Value co-creation and co-destruction in Untappd Ulander, Santeri (2022)Tässä pro-gradu tutkielmassa tutkitaan miten arvoa yhteisluodaan ja yhteistuhotaan Untappdissa, sosiaalisessa sovelluksessa, joka pyörii oluen arvostelun ympärillä. Tutkielman tavoitteena on selvittää miten yksilöt ja ...
Harnessing Digital Services for Co-creating Sustainability Value in the Retail Servicescape Lumivalo, Juuli; Clements, Kati; Hannuksela, Emma-Stiina (University of Hawai'i at Manoa, 2022)While the importance of sustainable consumption is well acknowledged and consumers increasingly demand sustainable alternatives, the consumption of environmentally strenuous products continues to grow. Technological solutions ...
Actors’ Dynamic Value Co-creation and Co-destruction Behavior in Service Systems : A Structured Literature Review Li, Mengcheng; Tuunanen, Tuure (University of Hawai'i at Manoa, 2020)This paper investigates resource integration and social interaction as the two core processes of value co-creation and co-destruction in a service system. We applied a structured literature review as our research methodology ...
UML Artefacts for a Blockchain-enabled Platform for Fairtrade Sharma, Ravishankar; Kshetri, Nir; Wingreen, Steve; Shaikh, Aijaz A. (International Consortium for Electronic Business, 2021)Fairtrade-certified products have successfully entered the mainstream distribution channels mostly in developed countries, and these products are now sold in famous supermarket chains. Nonetheless, the packaging and labeling ...