Abstract
The purpose of this study is to analyze the pricing strategies of French FinTech Firms (FFFs) using quantitative descriptive and correlational research methods. Based on a representative sample of 246 FFF, the study provided consistent support for the hypotheses, which argues that FFFs with high price-setting power may implement a combination of the price-setting strategy (PSS) “skimming” and the price-setting practice (PSP) “value-informed”. FFFs applying “market-based” PSSs tend to use “competition-informed” PSP preferring “pay-per-use” price-setting model (PSM). Whilst FFFs who apply “penetration” PSS tend to use “cost-informed” PSP and “pay-per-use” PSM. The findings support founders and senior management in their pricing decisions. This paper contributes to the existing literature on pricing strategies of early-stage high-tech companies. There is a need for further research about the change of pricing strategies during the lifecycle of a firm using for example a longitudinal quantitative study.
Highlights
Global investment efforts in FinTech companies represented 112 bn USD as of 2018
Based on a representative sample of 246 French FinTech Firms (FFFs), the study provided consistent support for the hypotheses, which argues that FFFs with high price-setting power may implement a combination of the price-setting strategy (PSS) “skimming” and the price-setting practice (PSP) “value-informed”
The results suggest that FFFs prefer to use a “market-based” price-setting strategies (PSS), a “value-informed” price-setting practices (PSP), and “pay-per-use” price-setting models (PSM)
Summary
Global investment efforts in FinTech companies represented 112 bn USD as of 2018 These figures represent a significant increase as opposed to the already impressive level of 51 bn USD as of 2017 (Consultancy Europe, 2019). These figures are expected to continue growing, having a huge impact on the financial industry. This is evident in the recent announcement made by Facebook (2019) concerning the introduction of a new cryptocurrency called Libra. The specific research problem is how the management of high-tech firms align price-setting strategies (PSS), price-setting practices (PSP), and price-setting models (PSM) within a price decision-making process to meet their financial goals (Cohen & Neubert, 2019)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
