Why higher prices can be a double-edged sword for digital services

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Paying a steeper price for a subscription service can trigger a familiar impulse: You want to get your money’s worth. For companies selling AI tools, cloud computing and other digital services, that can complicate a basic pricing strategy. Raising prices may keep some customers from signing up, but those who do pay may be motivated to use the service more.

Source: Phys.org

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