Digital media / Newspaper / Transaction Costs / Unbundling / Usage Based Pricing

Pay Per Article – Possible Business Model

The problem we identified before with newspaper pay per article is the transaction cost. One way to address that problem can be to have a third party pay for the article access. It is not much different from Ad supported except that the article (or certain number of online impressions of it) are sold by … Continue reading

Classes of Service / Consumer Behavior / Credit Card / Gas Pricing / Transaction Costs / Unbundling

An Alternative To Unbundled Pricing – Service Reduction

Are there cases where a business can simply eliminate a service component instead of unbundling it and charging separately for it? There is a very nice Italian  restaurant called Trattoria La Siciliana in  Berkeley, CA. Their offering is premium – authentic sicilian cuisine, great wines and  great service. This is also a small place and … Continue reading

Newspaper / pricing / Reference Price / Segmenting / Service Plan / Transaction Costs / Unbundling / Usage Based Pricing

The Wall Street Journal Pay Per Article Coming

The Financial Times reports that the WSJ is considering unbundling its online publication to offer pay per article scheme and is working on a Micro-payment scheme. Currently WSJ offers subscription only pricing for its online version for $99/year and is available at a discount when bundled with its paper version. Previously I have written … Continue reading

Credit Card / Gift cards / Transaction Costs / Unbundling

Transaction Costs of Unbundled Pricing

First you buy a plane ticket, then pay curbside check-in and for baggage fees at the airport. Once in the plane you pay, separately, for drinks, meals, pillows, inflight movie, Wifi.  Fortunately you can complete all these transactions with your credit card. The price of the additional services you used are large enough, in the … Continue reading

Classes of Service / Segmentation / Transaction Costs

Customer Reaction and Unbundling

From the customer perspective, how would they react to the itemized pricing? What are their pain-points? What are the budgetary, psychological and transaction costs? How would they react to taking out their wallet to pay multiple times? I serve as the elected VP of Technology of the student body in my school. I received a … Continue reading