An enhanced network service pricing model considering network externalities |
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Authors: | Valbona Barolli Heihachiro Fukuda Leonard Barolli Makoto Takizawa |
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Affiliation: | (1) Graduate School of Science and Engineering, Tokyo Denki University, Ishizaka, Hatoyama, Saitama 350-0394, Japan;(2) Department of System Management, Fukuoka Institute of Technology (FIT), 3-30-1 Wajiro-Higashi, Higashi-ku, Fukuoka 811-0295, Japan;(3) Department of Information and Communication Engineering, Fukuoka Institute of Technology (FIT), 3-30-1 Wajiro-Higashi, Higashi-ku, Fukuoka, 811-0295, Japan;(4) Department of Computers and System Engineering, Tokyo Denki University, Ishizaka, Hatoyama, Saitama 350-0394, Japan |
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Abstract: | In this paper, we provide an evaluation model for marketable quality and profitability. We define the marketable quality as
a qualitative aspect of profitability. Not always there is a clear tradeoff relation between marketable quality and profitability.
Therefore, it is important to discover how to increase the profitability by enhancing marketable quality. We apply the real
values of some leading manufacturing Japanese corporations to our proposed model to analyze its accuracy. From the analysis,
we found that theoretical and real standard values of the marketable quality indicator were both 0.6. This shows that the
proposed model has a good approximation. From the fair relation of network service providers and consumers, we present the
network pricing guidelines for the maximum profitability, while enhancing the marketable quality. Also, we enhance our proposed
network service pricing model considering network externalities. |
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Keywords: | Business systems and models Network service pricing Marketable quality Profitability |
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