Title: Pricing innovation: state of the art and automotive applications

Authors: Jean-Jacques Chanaron

Addresses: CNRS/GATE, Grenoble School of Management, 324 Chemin de Chartreux, 38430 Moirans, France

Abstract: This paper aims to elaborate on pricing and business models for forthcoming innovative intelligent transportation system devices, limiting its scope, in particular, to in-vehicle driving assistance systems, and suggesting the various possible innovation and pricing strategies with theoretical discussions. The methodology is based on a comprehensive literature review of the major contributions made in the fields of managerial economics and management sciences to the study of pricing strategies and practices and, in particular, the pricing of innovative goods or services, in order to identify the strengths and weaknesses of the various schools of thought. The paper also gathers and analyses the available data on two innovative navigation and safety devices for cars, namely anti-lock braking systems and navigation systems, in order to put forward an initial interpretation. It concludes that there is no formula or even a vague method for determining |acceptable| price levels or |trigger points|.

Keywords: automobile industry; innovation; intelligent transportation systems; ITS; pricing strategies; in-vehicle driving assistance; automotive safety; vehicle navigation; anti-lock braking systems; ABS.

DOI: 10.1504/IJVICS.2008.022358

International Journal of Vehicle Information and Communication Systems, 2008 Vol.1 No.3/4, pp.268 - 287

Published online: 02 Jan 2009 *

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