Software Editions: An Application of Segmentation Theory to the Packaged Software Market

摘要

Introducing multiple editions of the software is a relatively recent innovation in the software market. The editions serve to differentiate among different user segments. Introduction of similar low-and high-end products in other markets has been analyzed suing segmentation theory. However, the software market is fun- damentally different from other product markets in two respects: (1) Software is char- acterized by negligible marginal production cost, and (2) the option of offering upgrades also exists.