Differentiated Pricing Strategy for Business Resource Service in Cloud-Based Industrial Software Platforms

Driven by cloud computing and digital transformation, cloud-based industrial software is crucial for optimizing business operations, yet existing solutions often lack scalability and integration, limiting their effectiveness. Manufacturing companies face cost and resource constraints when adopting these solutions. This study investigates differentiated pricing strategies for industrial software providers to better serve manufacturing firms with varying capabilities, enhancing market competitiveness. Existing research rarely addresses pricing differentiation, and traditional backward induction models struggle with incomplete information. To address these gaps, we propose a Stackelberg game pricing model involving one software provider and multiple manufacturers, proving the existence of a Nash equilibrium. To overcome the limitations of backward induction, we develop and validate an iterative algorithm through simulations.

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Publication Details

Published
2025-05-09
DOI
https://doi.org/10.1109/aemcse65292.2025.11042364
Primary Topic
Cloud Computing and Resource Management
Type
article
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article

Differentiated Pricing Strategy for Business Resource Service in Cloud-Based Industrial Software Platforms

Chunlin Li, Ruidong Zhao, Kun Jiang, Yong Zhang
Cloud Computing and Resource Management
article

Differentiated Pricing Strategy for Business Resource Service in Cloud-Based Industrial Software Platforms

Chunlin Li, Ruidong Zhao, Kun Jiang, Yong Zhang
article en

Abstract

Driven by cloud computing and digital transformation, cloud-based industrial software is crucial for optimizing business operations, yet existing solutions often lack scalability and integration, limiting their effectiveness. Manufacturing companies face cost and resource constraints when adopting these solutions. This study investigates differentiated pricing strategies for industrial software providers to better serve manufacturing firms with varying capabilities, enhancing market competitiveness. Existing research rarely addresses pricing differentiation, and traditional backward induction models struggle with incomplete information. To address these gaps, we propose a Stackelberg game pricing model involving one software provider and multiple manufacturers, proving the existence of a Nash equilibrium. To overcome the limitations of backward induction, we develop and validate an iterative algorithm through simulations.

Wuhan University of Technology (CN)
Decent work and economic growth
Openalex Percentile: Top 79%
Cloud Computing and Resource Management
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