Pricing · Market experiment and demand modeling
Optimal Pricing of New Subscription Services: Analysis of a Market Experiment
Marketing Science · 2002
Summary
The study demonstrates an empirical approach to evaluating alternative subscription prices using market-experiment evidence rather than relying only on stated preferences or managerial judgment.
For your marketing
Possible founder application
A foundational example of testing prices in market conditions. Review the full paper to understand its experimental design and demand model before adapting it to software subscriptions.
Reported result
What the study found
The study demonstrates an empirical approach to evaluating alternative subscription prices using market-experiment evidence rather than relying only on stated preferences or managerial judgment.
Research question
What the authors investigated
How should a firm price a new subscription service using evidence from a market experiment?
Design
The article analyzes market-experiment data for a new subscription service and uses the experiment to inform pricing decisions.
Sample and setting
A new subscription-service market experiment; the publisher record inspected does not expose enough abstract detail to report the service or sample size.
Scope and transfer
Limitations to keep in view
The publisher record retrieved here provides limited abstract detail. The service and market are specific, and an older experiment may not reflect current digital acquisition or pricing conditions.
Research sources
INFORMS publisher bibliographic record and issue metadata; summary is intentionally restricted because the abstract text was not fully accessible.