So if you're innovating on the product.. market the innovations to your users, and focus their attention on the benefits of your innovations. They should be big, obvious improvements--think 10x (not 10%). For pricing, copy it from your competitors.
If you're innovating on the pricing, then that's frequently a freemium model... but it could also be flat-rate pricing, etc. To build a foothold in an existing market, you'll need to aim for pricing that's 1/10th of your competitors. If you're going to deliver a big price cut like this, you should make it as obvious to your customers as you possibly can.
So the answer to your question very much depends on your strategy, but also the industry you are in and how your competitors price their products.
Perhaps the worst thing you could do is both... since innovations cost money and price cuts cost money... it's a great way to die. Doing less of both just creates a mediocre product without clear marketing; making it more complicated for your users to understand the benefits of your service.