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Author(s)

Mohanbir Sawhney

Paolo Cuomo

Ariel Hasson

Kevin Loftus

Angela Petros

Derek Yung

Steve Meyer, the chief marketing officer at Trilogy, was evaluating the best way to move forward with an innovative customer value-based pricing approach for its enterprise software solutions. Trilogy had radically transformed its business from a product-centric organization to a customer-centric organization, and value-based pricing was a pillar of this transformation. Meyer had to evaluate three pricing approaches: traditional license-based, subscription-based, and gain-sharing. He had to assess which pricing approach Trilogy and Trilogyfs clients would prefer, and the conditions under which gain-sharing pricing would work. He also had to address several adoption barriers that were preventing customers from embracing the gain-sharing pricing approach.

Date Published: 01/01/2004
Discipline: Marketing;Technology
Key Concepts: Pricing Strategy, Value-Based Pricing, Gain Sharing, Principal Agent Problem, Adverse Selection, Innovation Adoption, Customer-Centric Organization Design, Change Management
Citations: Sawhney, Mohanbir, Paolo Cuomo, Ariel Hasson, Kevin Loftus, Angela Petros, Derek Yung. Trilogy Corporation: Customer Value-Based Pricing. 5-104-041 (KEL106).