Jowers has four pricing options for Atlantic Computers. He must decide to either: 1) keep the company's tradition of charging for software and providing PESA software for free, 2) charge a price equal to what the customer would pay for four Ontario Zink servers, 3) charge a price based on a cost-plus approach to pricing PESA, or 4) charge a price based on value-in-use pricing.
The traditional pricing strategy involving charging for software and giving the PESA software for free. This strategy does not allow major emphasis on developing and selling software tools tlo enhance their servers' …show more content…
Although the above pricing strategies are the most common, these approaches may prevent firms from fully realizing the benefits that are due to them (Bharadwaj & Gordon, 2007). The most effective pricing strategy for Jowers and Atlantic Computers would be the fourth option: charging a price based on value-in-use pricing. This pricing strategy involves examining the value that a company's offering creates for the customer, and using the savings generated as the basis for