Modeling Consumer's Contractual Decision in a Continuous Innovation B2B Market with a Forward-Looking Dynamic Approach

摘要

The technology service of cloud computing in the B2B market possesses several features that challenge the service provider's strategic decision making.First, B2B buyers sign a contract when purchasing the service.The revenue of the technology service mainly comes from the length of the service contract that the B2B buyers purchase.Second, the firm's pricing strategies of the service ties to the length of the service contract that the consumer signs.Third, despite the purchase incentive, buyers address the technical concerns, such as security, capability, privacy and integrity etc.toward the emerging technology service of cloud computing.Therefore, to maintain advantages in the market, the service provider needs to keep on improving the service-related technology.Last, the B2B buyer's decisions are more sophisticated and strategic when balancing the benefits and the risks of the service contract.