Revisit: Pricing in the Service Economy


Pricing and Revenue Models in the New Service Economy, Special issue of Journal of Revenue and Pricing Management, Edited by Irene Ng; Deadline now 30 Sep 2009

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Special Issue on Pricing and Revenue Models in the New Service Economy Vol 9, No 2

Submission of papers

In 2010, a special issue on pricing and revenue models within the new service economy will be guest edited by Professor Irene Ng of the University of Exeter. We would like to invite leading scientists, researchers and practitioners to submit papers, case studies and articles by 30 September 2009 in order to be considered for publication.

The service economy has recorded phenomenal growth over the past 10 years aided by new technologies. From these service businesses, new pricing and revenue models have emerged. In the online world, Skype, a computer-to-computer communication tool provides its core service for free, with revenues derived from SkypeOut, a paid service charged when a user wishes the computer to call a landline, rather than another computer. Similarly, virtual world platforms such as second life and MMORPG (massively multiplayer online role playing games) earn their revenues from selling virtual products that are only useful in cyberspace. Google earns from ad revenues, separating ‘users’ from ‘payers’. Software as a Service (SaaS) firms such as derive their revenues from an online service provision without the customer’s need to buy or own any sophisticated IT systems nor having to deal with the technical fuss. With greater digitization, data is now more easily available resulting in the ability of online firms to construct more responsive and dynamic pricing and revenue models.

In the brick and mortar world, new and more advanced technologies have resulted in products being able to last longer with manufacturing and engineering firms such as Rolls Royce and Kone starting to focus on long term service provision for their complex engineering equipment as more than 50% of their revenues are now derived from services. As one business executive would put it, “the sale of one of our products generates 4 times service revenues over the lifetime use of its product”. Such services have resulted in innovative revenue models such as Rolls Royce “power-by-the-hour®” where the price of servicing the engine is calculated on the basis of how many hours the engine is in the air or where hotels do not own their linen but ‘rent’ the linen provision in their hotels as a service complete with laundering ($1 per sheet laundered). Furthermore, manufacturing firms are starting to mix tangible and intangible offerings in the form of product-service-systems (PSS), challenging conventional pricing techniques.

The above suggests that pricing and revenue models in the modern service economy has moved from transactional-based pricing to more sophisticated models that incorporate relational, temporal and behavioural issues.

How do such developments map onto traditional ideas in the practice and research of pricing, often found in the domain of economics, OR and marketing? The new service economy requires new knowledge and likely to need new ways of thinking in the research and practice of pricing and development of revenue models

This call for papers seeks to highlight research and practices surrounding pricing and revenue models in the new service economy. Manuscripts are invited from both research and practice across disciplines. The criteria for selection is based on the transferability of knowledge in the practice and research of pricing/revenue models across service sectors, rather than contextual within a type of service. Inter-disciplinary academic papers and inter-functional practice papers are particularly encouraged.

Recommended topic areas to consider for inclusion in this special issue include, but are not limited to, the following:

  1. Models that could be applied to or derived to advance the knowledge of pricing in the technologically advanced service economy
  2. Relational, temporal, behavioural issues in the pricing of online or virtual world services
  3. Value-based pricing and revenue models particularly when there are multiple stakeholders in the service system (e.g. airport services, facebook)
  4. The role of value co-creation in revenue models and pricing of services
  5. Service Dominant Logic and its impact on revenue and pricing models
  6. Through life pricing for service and support engineering
  7. Pricing and Revenue Models for Software as a Service (SaaS) or Everything as a Service (EaaS) systems
  8. Pricing and Revenue Models for Product-Service-Systems (PSS)

About the Journal

The Journal of Revenue and Pricing Management is an associate publication of INFORMS Revenue Management & Pricing section

Journal of Revenue and Pricing Management serves and reflects the tremendous growth in research and practices of revenue management and pricing, which has come about as a result of the growing appreciation of the subject.

"The only independent Revenue Management and Pricing journal that covers multiple industries in one location, provides case studies for practitioners and theoretical articles for academics to provide an insight as to what is coming in the future."

Paul Rose
Managing Director Paul Rose Revenue Management Ltd.

"JRPM provides a long overdue and much-needed forum for pricing and RM researchers and practitioners alike. The articles are timely and topical, reflecting the ongoing rapid evolution of pricing/RM models and business processes."

Peter Belobaba
Principal Research Scientist
International Center for Air Transportation
Massachusetts Institute of Technology

Submission of papers;

Papers should be submitted to

The paper should be clearly labeled in the title line of the email – Journal of Revenue & Pricing Management – Pricing and Revenue Models in the New Service Economy 9.2 Issue. Advice about the suitability of papers and other enquires can be sent to Professor Irene Ng at