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Chapter 3 Versioning Information - Coggle Diagram
Chapter 3 Versioning Information
Versioning
Design product line to
capture the greatest profits
Profits depend on the
total value
you create for customers
Offer versions tailored to the needs of different customers
Versions designed to
emphasize the difference in needs
of different groups of customers
Strategy
Delay Strategy: Books and Movies
Territorial Control: Available in certain countries
Self selection: identify dimensions of the information product that are
highly valued by some customers yet of little importance to others
Dimensions
Delay
User Interface
Convenience
Image Resolution
Speed of Operation
Flexibility of use
Capability
Comprehensiveness
Annoyance
Support
Considerations
Offline vs Online
No. of versions
Discounting high-end product
: Provide sufficient value to customers
Value-subtracted versions
: Paying customers- 10 features Non-paying customers- 5 features
Qn: How many versions?
Analyze Your Market
Analyze Your Product
Goldilocks Pricing
Online
Cheaper to deliver since there are
no production or distribution costs
Offline
Cannot do everything online as it affects offline business
Double-edged sword:
Complement offline version - showroom
Substitute offline version - Straits Times
Price & Quality
Special form of versioning
Bundling
Two or more distinct products are offered as a package at a single price
Bundle price is usually less than the sum of component prices
Ex: MS Office Suite
Cheaper to buy in a package
Option value
Information Bundles
Customized Bundles
Nonlinear pricing
Promotional Pricing
Ex: sales coupons, rebates
To enjoy promotional pricing, customers must be inconvenienced (download apps etc)
A coupon is a credible signal of willingness to pay
Only those who have a low willingness to pay (WTP) tend to use coupons