Bodendorf F, Lutz M, Franke J (2021)
Publication Type: Journal article, Original article
Publication year: 2021
URI: https://onlinelibrary.wiley.com/doi/full/10.1002/mde.3336
DOI: 10.1002/mde.3336
Open Access Link: https://onlinelibrary.wiley.com/doi/full/10.1002/mde.3336
Licensed standard software can be replicated millions of times at near zero cost for the supplier and poses immense challenges for purchasing and cost managers. A model is introduced to evaluate the appropriateness of software prices and thus to support the negotiation and decision process regarding suppliers. The model determines the “value to customer” of a software product using conjoint analysis and converts that value into a theoretical license price. In a case study coming from a large Original Equipment Manufacturer (OEM) it is shown that the developed conjoint model can successfully be used in practice and suggests realistic purchase prices.
APA:
Bodendorf, F., Lutz, M., & Franke, J. (2021). Valuation and pricing of software licenses to support supplier–buyer negotiations: A case study in the automotive industry. Managerial and Decision Economics. https://doi.org/10.1002/mde.3336
MLA:
Bodendorf, Frank, Manuel Lutz, and Jörg Franke. "Valuation and pricing of software licenses to support supplier–buyer negotiations: A case study in the automotive industry." Managerial and Decision Economics (2021).
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