Value-informed pricing for virtual digital products: Evidence from Chinese MMORPG industry

Qun Ren, Ke Rong, Chao Lu, Gordon Liu, and Margaret Ross

Value-informed pricing strategy, which focuses on determining the price level of products based on consumer value perception, is especially suitable to be applied in digital products rather than industrial ones.

Corresponding author:

Chao Lu, School of Management, Shanghai University, No. 99, Shangda Road, Shanghai 200444, P. R. China. Email: 06luchao@163.com

Introduction

Value-informed pricing, which is an emerging concept of pricing strategy that focuses on determining the appropriate price level through evaluating the consumers’ value perception (a tradeoff between what the consumer receives and what the consumer gives up to acquire the product) of its products, allows a firm to create a product advantage in the marketplace (Cressman, 2012; P. Ingenbleek, 2007; P. T. M. Ingenbleek, Frambach, & Verhallen, 2010). To set prices in line with the customer’s perception of...

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