Participative Pricing Strategy
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Unlike the passive role that consumers usually play in conventional pricing mechanisms, participative pricing enables consumers to play an active role in setting the price for a product or service. Pay What You Want (PWYW) is a form of participative pricing strategy where consumers enjoy complete autonomy in setting the price they pay for a product including a price of ‘zero’. In this presentation, the author focuses on the taxonomy of participative pricing mechanism and summarizes the key findings of the papers that the author published on PWYW pricing in several top ranked journals during 2016-2021. The findings reveal that different economic (e.g., internal reference price, price consciousness), social (e.g., social desirability) psychographic (e.g., altruism, fairness perception), and situational (e.g., perceived crowding, time pressure) variables influence consumers’ PWYW pricing decision. The findings further shows mediating mechanisms and moderating influences of some of these variables on each other’s effects. Finally, the presentation highlights on the implications of these findings and relevant directions for future research.
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Roy, R.; Rabbanee, Fazlul (2016)Pay What You Want (PWYW) is a type of participative pricing mechanism where the buyer can offer any price including a price of zero; and the seller has to accept the price without withdrawing the product offer. Although ...
Exploring the interactions among external reference price, social visibility and purchase motivation in pay-what-you-want pricingRoy, Rajat; Rabbanee, Fazlul; Sharma, Piyush (2015)Purpose: The purpose of this paper is to investigate the direct and indirect effects of social visibility (private vs public), purchase motivation (intrinsic vs extrinsic vs altruistic) and external reference price (ERP) ...
Roy, Rajat; Rabbanee, Fazlul ; Sharma, Piyush (2017)Pay what you want (PWYW) is a unique participative pricing mechanism that has no minimum price set by the seller, and the buyers can pay whatever price they want (including a price of zero) that the seller has to accept ...