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Consumer surplus for software products

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and Szyperski have studied what factors affect the perceived consumer surplus in the software product market. The value a customer places on software is affected by things such as compatibility with complementary products, degree of adoption in the market, usability, increases in productivity,
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to competitors play a role because customers may fear that the vendor may discontinue the product or go out of business. These authors suggest that the price of software should be based on its consumer surplus. Pricing strategies can be used to gain the most revenue such as
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On the other hand, many things affect the total cost of ownership of software products besides price. These include implementation, training, management, and operations costs. Additionally,
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with product variants and target groups. (2004) Calculations of consumer surplus is one way that software firms can keep track of their perception by customers in an integrative way.
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can be calculated differently from other products. Customers tend to buy products with greater consumer surplus. Software companies should know what measure in their
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Messerschmitt, D. G. and C. Szyperski. “Marketplace Issues in Software Planning and Design.” IEEE Software. Volume: 21, Issue: 3 (May/June 2004), pp:62-70.
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to determine their consumer surplus so that create products that are better at fulfilling their customers.
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differentiation from competitors, and innovativeness. These can be
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provides insufficient context for those unfamiliar with the subject
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Consumer surplus
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customer satisfaction dimensions
switching costs
product bundling
price discrimination
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Consumer

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