ABSTRACT
Price is a key element in the marketing mix, and has a significant effect on the operation of the information marketplace. This chapter explores the role of price and discusses the classical relationship between price and supply and demand. It emphasizes the role of pricing objectives and reviews the factors affecting pricing decisions, and discusses how this impact in the pricing of information products. The chapter explains the different approaches to pricing policy, including the principles and expectations associated with free access to information at the point of use, and the role of portals on the Web. Product pricing is fluid, changing and rather uncertain as technology is changing the relative economics of traditional forms of publication against optical media, and of on-line databases versus CD-ROMs. The chapter considers the pricing strategies and issues within the information marketplace: item-based pricing, pay-per-view, contracts and licenses, free information, professional pricing and promotional pricing.
