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Full-Text Articles in Management Information Systems

Usage-Based Pricing Of Software Services Under Competition, Ram Bala, Scott Carr May 2010

Usage-Based Pricing Of Software Services Under Competition, Ram Bala, Scott Carr

Information Systems and Analytics

With the emergence of high speed networks, software firms have the ability to deploy ‘software as a service' and measure resource usage at the level of individual customers. This enables the implementation of usage-based pricing. We study both fixed and usage-based pricing schemes in a competitive setting where the firm incurs a transaction cost of monitoring usage if it implements usage-based pricing. Offering different pricing schemes helps to differentiate the firms and relax price competition, particularly at higher monitoring costs, even when competing firms offer the same service quality. However, the low usage customers acquired by offering usage-based pricing are …


Channel Selection And Coordination In Dual-Channel Supply Chains, Gangshu (George) Cai Mar 2010

Channel Selection And Coordination In Dual-Channel Supply Chains, Gangshu (George) Cai

Information Systems and Analytics

This paper investigates the influence of channel structures and channel coordination on the supplier, the retailer, and the entire supply chain in the context of two single-channel and two dual-channel supply chains. We extensively study two Pareto zone concepts: channel-adding Pareto zone and contract-implementing Pareto zone. In the channel-adding Pareto zone, both the supplier and the retailer benefit from adding a new channel to the traditional single-channel supply chain. In the contract-implementing Pareto zone, it is mutually beneficial for the supplier and the retailer to utilize the proposed contract coordination policy. The analysis suggests the preference lists of the supplier …


Detailing Vs. Direct-To-Consumer Advertising In The Prescription Pharmaceutical Industry, Ram Bala, Pradeep Bhardwaj Jan 2010

Detailing Vs. Direct-To-Consumer Advertising In The Prescription Pharmaceutical Industry, Ram Bala, Pradeep Bhardwaj

Information Systems and Analytics

The pharmaceutical industry has always used sales representatives to target physicians (detailing), who are a key link in sales and market share for prescription pharmaceuticals. Since August of 1997 when the Food and Drug Administration eased the restrictions on Direct-toconsumer advertising (DTCA), there has been a dramatic increase in the use of DTCA by pharmaceutical firms to target end customers (patients). DTCA seems to have two different effects on pharmaceutical markets. The first is to inform patients about the availability of drugs for some ailments, thus expanding the market (constructive). The second is to persuade patients to talk about specific …