The Price of Information: Evaluating Customer Responses to Information-as-a-service (InaaS) Pricing Models : An explorative case study with three InaaS software firms

Abstract

Companies have to constantly adjust their data acquisition strategy as new information sources have become increasingly available. This has made it more complex for InaaS vendors to configure pricing models that align well with customer expectations. This study explores how InaaS vendors can configure price in order to maximize customers’ perceived value in markets with asymmetric information dynamics. By conducting an exploratory case study with three InaaS vendors, we have been able to interview several Norwegian real estate industry professionals. Through these interviews, ten parameters where identified relating to pricing that we suggest affect customers’ perceived value of vendors’ products. Additionally, we discuss how these parameters affect customers’ perception of value in light of the different pricing models of our case companies. Our findings indicate a prevalent preference among interviewees for a subscription-based pricing model, primarily driven by its simplicity and cost predictability. We also find our interviewees highly prefer trials as a tool to evaluate a products value. Nonetheless, our research suggest that there is no single universal pricing model that maximises perceived value for all customers. Therefore, we recommend that vendors take our proposed parameters into account, as they explore what pricing configuration aligns best with their customers.