1st Edition

Digital Pricing Strategy Capturing Value from Digital Innovations

Edited By Stephan M. Liozu, Andreas Hinterhuber Copyright 2023
    340 Pages 82 B/W Illustrations
    by Routledge

    340 Pages 82 B/W Illustrations
    by Routledge

    Digital Pricing Strategy provides a best-practice overview of how companies design, analyze, and execute digital pricing strategies. Bringing together insights from academic and professional experts globally, the text covers essential areas of the value and pricing of data, platform pricing, pricing of subscriptions and monetization of the global environment.

    Case studies, examples and interviews from leading organizations, including Zuora, Honeywell, Relayr, Alcatel Lucent, ABB, Thales, and General Electric, illustrate key concepts in practice. To aid student learning, chapter objectives, summaries, and key questions feature in every chapter, alongside PowerPoint slides and a test bank available online for lecturers.

    Comprehensive and applied in its approach, this text provides postgraduate, MBA, and Executive Education students with an understanding of the capabilities, processes, and tools that enable executives to effectively implement digital transformations and capture value from digital innovations.

    Table of Contents


    Section 1: Digital Pricing

    Chapter 1: The Essential Ingredient for More Effective Digital Pricing: Value, by John Porter

    Chapter 2: Publish Your Prices, by Kyle T. Westra

    Chapter 3: Dynamic Pricing Process: How to Transition from Fixed to Dynamic Pricing?, by Arnd Vomberg

    Chapter 4: Realizing Your Monetization Potential Needs Customer Value Management, by Mrinal (MG) Gurbaxani and Alex Smith

    Chapter 5: Measure and Quantify the Value of Your Digital Solution, by Stephan M. Liozu, PhD

    Section 2: Software and Subscription-Based Pricing

    Chapter 6: Price Increase for Discounted Customers in SaaS: Pricing Research Description and Success Story, by Maciej Wilczynski

    Chapter 7: SaaS Pricing: From Subscriptions to Usage-Based Pricing Models, by Andreas Hinterhuber

    Chapter 8: The Digital Pricing Framework: Best Practices in B2B Pricing and Offer Design, by Scott Miller

    Chapter 9: Tapping into the Subscriber Psychology with Good-Better-Best: Is There an Optimal Ratio Between Tiers?, by Gaurav Sonpar and Michael Mansard

    Chapter 10: Value-Based Pricing of Smart-Product-Service Offerings in the Manufacturing Industry, by Tobias Leiting, Calvin Rix, Regina Schrank, and Lennard Holst

    Chapter 11: Price Sensitivity Meter and Conjoint Analysis as Tools to Set Your Industrial Subscription Pricing, by Maciej Wilczynski and Matt Johnston

    Section 3: The Value and Pricing of Data

    Chapter 12: Overcoming Real-World Challenges in B2B Digital Pricing Transformation, by Lalit Wadhwa

    Chapter 13: Holistic Approach to Market Segmentation of Industrial Smart Services: What Is the True Value of Data?, by Luis Prato

    Chapter 14: Three Considerations for Data Monetization and Value Creation in the Digital Age, by Bill Schmarzo

    Chapter 15: The Economics of AI: How to Shift Data Projects from Cost to Revenue Center, by Alex Fournier and Claire Gubian

    Chapter 16: The Pricing of Data: An Interview with Jian Pei, Simon Fraser University

    Section 4: The Pricing of Platforms and Marketplace

    Chapter 17: Marketplace Monetization Methods, by Jacek Łubiński

    Chapter 18: The Monetization of Marketplaces and Platforms in the Context of Web 3.0, by Murali Saravu

    Chapter 19: Pricing in Platforms and Marketplaces: A Primer in Understanding All the Dimensions of the Pricing Problem and Opportunity in Marketplace-Platforms, by Simone Cicero

    Chapter 20: Online Pricing Experimentation, by Robert Phillips

    Section 5: Pricing and Artificial Intelligence

    Chapter 21: AI and Its Impact on Pricing Technology, by Louis Columbus

    Chapter 22: Why AI Transformations Should Start with Pricing, by Joël Hazan, Camille Brégé, Jean-Sébastien Verwaerde, and Arnaud Bassoulet

    Chapter 23: Digitization of the B2B Pricing—A Fundamental Shift Required, by Craig C. Zawada

    Chapter 24: Value-Based Offers Assisted by Artificial Intelligence, by Stella Parks and John V. Colias

    Chapter 25: Digital Transformation: How to Convert a Buzzword into Real Bottom-Line Value, by Mitchell D. Lee and Darius Fekete


    Stephan M. Liozu is the founder of Value Innoruption Advisors, a consulting boutique specializing in value-based pricing, monetization strategies, and digital pricing. Stephan sits on the Advisory Board of LeveragePoint Innovation and the Professional Pricing Society. He is the author of multiple books about pricing, including Pricing and Human Capital (2015), and co-editor of Innovation in Pricing (2012), The ROI of Pricing (2014), and Pricing and the Sales Force (2015).

    Andreas Hinterhuber is an associate professor at the Department of Management at Università Ca' Foscari Venezia, Italy, and is an equity partner at Hinterhuber & Partners, a consulting company specializing in pricing based in Innsbruck, Austria. He has published articles in leading journals including the Journal of Business Research and MIT Sloan Management Review, and has edited many books on pricing, including Innovation in Pricing (2012), The ROI of Pricing (2014), Pricing and the Sales Force (2016), and Value First then Price (2017).


    'The "must read" book for the C-level and executives, combining theories and best practices and providing practical considerations and guidance on how to drive digital transformation successfully.'
    Jens Pfennig, Global Head of Pricing & Business Operations, Software AG

    'This book reinforces the message I have been spreading for many years—that digital innovations and data-driven opportunities need to be monetized and priced the right way! Data, analytics, and AI without a value mindset bring organizations no benefits.'
    Bill Schmarzo, Dean of Big Data and author of The Economics of Data, Analytics, and Digital Transformation: The Theorems, Laws, and Empowerments to Guide Your Organization’s Digital Transformation

    'Pricing is a matter of life and death in the digital age. Digital transformation changes business models; it should also change pricing. This book is a trailblazer that has managed to bring together the knowledge of leading experts in highly relevant areas such as value-based pricing, the value of data, and artificial intelligence in pricing. A must-read for both service providers and service buyers to reach win-win.'
    Ari Hirvonen, Chief Digital Officer, University of Jyväskylä, President of Finnish Universities CIO Network

    'This well-rounded book features a wealth of information and thought-leader expertise on all the digital pricing challenges your organization will face. By focusing on monetization, new business strategies, data projects, and real-world challenges, Digital Pricing Strategy: Capturing Value from Digital Innovations will give you and your team a blueprint for success for today and times ahead. Liozu and Hinterhuber have assembled a great roster of collaborators here to help guide companies forward.'
    Kevin Mitchell, President of the Professional Pricing Society