Abstract:
This study analyzes which elements affect startups’ decision making in pricing process and understand how this process could be improved by a framework. The literature reviewed the concepts of pricing, startups and decision making process. The method chosen was the Design Science Research (DSR), mainly because the method is recommended for finding adequate – not perfect - solutions for real problems, therefore bringing theory and practice close together. The artifact chosen for this research was a processual framework. The artifact was developed to be a useful, practical, flexible, timeless and engaging tool for Brazilian startups with digital solutions. The processual framework proposes the startups decide what is their most suitable revenue model – and pricing – after concluding a six-step-process. Each step proposes questions to be answered and actions to be taken by the startups, and after completing the six steps process, the startup is able to make a decision about their revenue model and pricing. There were two data collection stages: prequalification and artifact testing. The prequalification interviews explored individuals with relevant roles in the startups ecosystem, and the second phase tested and evaluated the artifact with Brazilian startups. This study practical contribution is to bring attention to pricing as a possible strategic ally for startups, and providing them a new tool for evaluating their pricing definition process. The academic contribution of the study is to advance the discussion on startups, bringing the Design Science Research – a mainstream method only in Information Systems and Production Engineering – to the Administration field; and also by expanding the discussion of pricing from a static concept born in economics to a term applicable to the strategy field