Risk-aware pricing of B2B services: Approach, realization and application to a payments transaction processing service

Abstract

This paper proposes a risk-aware B2B service pricing approach. The approach characterizes relevant cost positions according to their quantity and adaptiveness towards changes in the quantities sold. Based on the achieved transparency about the cost structure, cost niveau and cost adaptiveness, the approach allows to configure a risk-aware pricing scheme with an arbitrary number of different price components. It also allows for several different pricing schemes and provides analysis functionality for comparing these schemes with respect to risk and return criteria. The approach contributes to the domain of service science, which historically has not been discussing risk-based pricing approach in-depth.