keywords: Software pricing, price discrimination, price bundling, software sizing
To determine the price of a product that will not only yield the highest possible benefits for vendors but also yield expected value for customers is usually not an easy task. Software, being a digital product, has characteristics that make its marketing more complicated than the marketing of physical goods. This paper presents a review of the various methods used by software producers and vendors in the determination of software prices. This review is done by extensively examining academic literature and research on this topic for over a decade, and summarizing the evolving trends on the subject. The fairness of the software prices arrived at by the various price determination models was also discussed.