Pricing strategies of SaaS service providers considering different billing methods
Based on the background related to SaaS services,this paper constructs a two cycle game model to study how the usage,transaction cost,update level,discount rate and free trial time of SaaS service providers af-fect the billing method and pricing strategy of SaaS service providers.The study finds that before users perceive the real quality of SaaS services,the optimal profit increases with the increase of free trial time.No matter what price discrimination strategy is adopted,when the usage is high and the transaction cost is high,SaaS service providers will make higher profits by charging stage by stage.When the usage and transaction cost are in an e-quilibrium state(such as high usage and low transaction cost),SaaS service providers will make similar profits through the two pricing methods;when the usage is low and the transaction cost is low,SaaS service providers make higher profits by charging according to the usage.When charging by stages is adopted and the discount rate is high,the behavior-based price discrimination strategy is the best;when the discount rate is low,intertemporal price discrimination is more profitable.In addition,the intertemporal price discrimination is the best when the method of charging by usage is adopted.
charging by stagescharge according to usagefree trial serviceSaaS service