Abstract:  Based on the fact that, in product service systems (PSS), products have dual properties of physics and service, which influences the revenue of an enterprise through pricing strategy. The demand function and revenue model are constructed by considering the three factors simultaneously. First, the problem of finding the maximum profit by determining the price, product quality level, and service quality level is analyzed and solved. Then, the influence of price sensitive factor, the product quality sensitive factor, and the service quality sensitive factor to the revenue model is discussed. The results show that an enterprise should adjust the most sensitive factors to obtain the maximum benefit.

Key words: product service system (PSS), pricing strategy, quality of product, service quality