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Customer-Equity Valuation in Software Markets

  • Andreas Kemper
Chapter
Part of the Contributions to Management Science book series (MANAGEMENT SC.)

Abstract

The previous investigations revealed the importance of network effects for valuations in software markets. In the next step the findings on network effects are linked to valuations in software markets based on a customer-centric valuation approach. First, the background of customer-based valuation is presented. Then, a DCF customer equity model is outlined before a real options version is reviewed. As both models reveal the importance of reliable software market models based on solid adoption and diffusion models, these are investigated in the next chapter. Respective insights provide the basis for the development of a network effects framework for valuations in software markets at the end of this part.

Keywords

Cash Flow Real Option Network Effect Customer Base Customer Lifetime Value 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2010

Authors and Affiliations

  1. 1.FrankfurtGermany

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