If you thought you've seen the last of those keeping-up-with-the-tech headaches, be prepared for an upgraded version.
The Indian School Of Business is conducting a seminar on ‘Pricing & Market Segmentation For Software Upgrades’, on the 20th of September. The seminar will have Ram Bala of ISB discussing relevant topics like:
When is it a good time to upgrade?
How much time will a customer take to upgrade?
Is it better to upgrade now or to wait for an improved version?
When should an organization release an improved product?
How much should the charge be for a new version?
Should discounts be given on upgrades to the existing customers?
Will today’s sales be cannibalized by the anticipated improved version?
To address these issues, Ram Bala will be analyzing a two-period model in which a firm sells an initial version of its product in the first period, and an improved version, in the second. In each period, the firm (i.e., the software supplier) selects the selling prices, and customers decide whether to purchase. Customers may purchase the product in either or both the periods, and at the firm’s discretion, are given a discounted price if they repurchase/upgrade in the second period.
This model will then be solved for the perfect equilibrium prices and purchasing decisions, and will lead to insights into how equilibrium prices, profits, and cash flows are influenced by the degree of product improvement.
Please check ‘Upcoming Seminars' at http://www.isb.edu/Seminar/index.html#a (ISB Web Site), or contact 2300-7024/2318-7515/2300-5731 for further details.