The Research of The Pricing Strategy of New Market Entrants Entering Market

hongyan Guo, Yang WANG

Abstract


First of all, based on the summary of the development of SaaS, this paper takes the free trial strategy as the entry point, and takes the market share and market price as the decision points, the strategy model of market new entrants’ optimal pricing and the market entry strategy model are discussed under the two dimensions of space and time. On the model side, the hotelling-based model expands the strategy of free strategy, supplier and consumer sustainable expectations-oriented pricing strategies. New entrants with low product quality consider from a short-term perspective to enter at high prices, relying on free strategies to accumulate market share, and provide space for subsequent price cuts. New entrants with high product quality enter at low prices, increase conversion rate through free trials, and stabilize the market with brand effect.


Keywords


The pricing of SAS; Free

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References


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DOI: http://dx.doi.org/10.3968/11018

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