"When General Electric entered the jet engine market, the Ohio-based company took an innovative approach to pricing policy. Instead of selling jet engines for a one-time fixed cost, GE decided to charge “power by the hour” through a program that bills customers whenever the sold jet engine is in the air.
"Similarly, the DVD rental company Netflix changed the rules of the movie rental game by charging a monthly subscription and eliminating late fees.
"Despite such examples of the critical role that pricing policy can play in a company’s overall marketing strategy and success, business practitioners and scholars have largely ignored the topic and left managers with little guidance on the subject."
Read the full article: "Innovative Companies Rethink Pricing Metrics."
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