Cambridge software products

You can change your cookie settings at any time but parts of our site will not function correctly without them. Compact case. Cambridge Software Corporation. Subject category: Economics, Politics and Business Environment. Authors: Anirudh Dhebar. Published by: Harvard Business Publishing. Length: 4 pages. Topics: Applications ; Cost analysis ; Decision making ; Market segmentation ; New product marketing ; Pricing ; Product development ; Product management ; Software development ; Product introduction.

You must be logged in to access preview copies. Write a review No reviews for this item. View usage. Login to add to your basket. View our pricing guide or login to see prices. About Settings Related Abstract Cambridge Software Corp must decide whether or not to offer multiple versions of a new software product. The firm has identified five market segments for the software and is deciding which, if any, of three product versions a high end 'industrial' version, a mid-range 'commercial' version, and a low-end 'student' version to offer.

The decision depends on the size of the different market segments, the customers' willingness- to-pay, and the costs of developing and producing each of the three versions. Software publishing. Length: 21 pages. Product : Pages: 5. Related Topics: Market segmentation ,. Newsletter Promo Summaries and excerpts of the latest books, special offers, and more from Harvard Business Review Press. Sign up. This Product Also Appears In.

Buy Together. Related Products. By Paul M. Healy ,. View Details. By Woodward Yang , David Kiron ,. Question 1: If Cambridge Software is obliged to launch just one product, which one should it be, and how should it be priced? For every single version, we have calculated the total contribution for each price that segments are willing to pay, and chosen the price that can maximize the total contribution.

From the table above, we suggest that the company chooses to sell the "Industrial" version. Question 2: If several versions are allowed, which should be launched, and how should they be priced?

Consumer surplus is an economic measure of consumer satisfaction, which is calculated by analyzing the difference between what consumers are willing to pay for a good or service relative to its market price. To predict the consumers' purchasing behavior, we assume that customers would buy the product with a higher surplus, which means customers would get more satisfaction. Based on the result of Question 1, we have reached the conclusion that Industrial version I is the most profitable one.

And we also noticed that I version only caters for the first three segments, which means I version is more profitable among high-end customers.