Pricing models

The internet made radically new pricing schemes possible, which encouraged start-ups to adopt pricing structures that departed greatly from traditional industry practice. The most famous example is the Priceline "name-your-own- price"

model, which many people believed would become the dominant model for pricing, but is now seen as another variation on well-established pricing formulas. Their approach works well with airline tickets because accurate, timely information about the best prices is hard to get, and the seats must be sold before the fight. But customers must be willing to put up with the inconvenience of not being able to choose their airline or time of day they will fly. These conditions are less likely to apply to B2B firms, so 67 percent of them didn't see any impact.

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