Open Access

ARTICLE

Pricing Method for Big Data Knowledge Based on a Two-Part Tariff Pricing Scheme

Chuanrong Wu^1,*, Huayi Yin¹, Xiaoming Yang², Zhi Lu³, Mark E. McMurtrey⁴

1 School of Economy and Management, Changsha University of Science & Technology, Changsha, 410114, China
2 College of Business Administration, University of Nebraska at Omaha, Omaha, 68182, USA
3 Peter B. Gustavson School of Business, University of Victoria, Victoria, V8P5C2, Canada
4 College of Business, University of Central Arkansas, Conway, 72035, USA

* Corresponding Author: Chuanrong Wu. Email:

Intelligent Automation & Soft Computing 2020, 26(5), 1173-1184. https://doi.org/10.32604/iasc.2020.014961

Abstract

Nowadays big data knowledge is being bought and sold online for market research, new product development, or other business decisions, especially when customer demands and consumer preferences knowledge for new product development are needed. Previous studies have introduced two commonly used pricing schemes for big data knowledge transactions (e.g., cloud services): Subscription pricing and pay-per-use pricing from a big data knowledge provider’s standpoint. However, few studies to date have investigated a two-part tariff pricing scheme for big data knowledge transactions, albeit this pricing scheme may increasingly attract the big data knowledge providers in this hyper-competitive market. Also, little research has been done from the perspective of the knowledge recipient firm which is an important and integral part of big data knowledge transactions. This study constructs a two-part tariff pricing decision model for big data knowledge transactions from the perspective of the knowledge recipient firms. The model is a more generalized pricing scheme decision model and can be used to compare the profitability of three pricing schemes: Subscription pricing, pay-per-use pricing, and two-part tariff pricing. It shows that the influence of free knowledge on new product development performance of knowledge recipient firms cannot be ignored, and the pay-per-use pricing scheme is the best solution for knowledge recipient firms.

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Keywords

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