The Genealogy of Pricing

Abstract

The marketing environment encompassing companies has changed significantly since the late 1990s owing to the rapid progress of information technology. This especially includes the popularization of the Internet, increase in digital commodities and collectable information, and development of artificial intelligence technology. Pricing strategies adopted by companies have also changed against the background of these changes in the marketing environment. As a result, dynamic pricing and subscription have become two major pricing strategies in recent years. This study summarizes the major pricing strategies that have been adopted since the late 1990s when information technology began to progress and shows the genealogy of pricing starting from the pricing strategies presented by Tellis (1986). We predict the future of pricing strategies based on the background of pricing strategies adopted in recent years and the genealogy of pricing.