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Is it really worth it? A test of pay-what-you-want pricing strategies in a German consumer behaviour context

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  • Tim Dorn
  • Augustin Suessmair

Abstract

This paper focuses on the factors that significantly influence an individual's decision in establishing a price for a standardised product under so-called pay-what-you-want (PWYW) circumstances. Current research has identified seven influential constructs that are assumed to be the main drivers of consumer behaviour when making a pricing decision in a PWYW environment: fairness, altruism, loyalty, price consciousness, income, satisfaction and reference price. This paper extends the list of influential factors with an additional construct, situational factors and examines the constructs' relative importance with regard to their influence on a PWYW decision. Moreover, the positive effect of personal interaction on a buyer's willingness to pay during a payment situation in the PWYW context was confirmed.

Suggested Citation

  • Tim Dorn & Augustin Suessmair, 2016. "Is it really worth it? A test of pay-what-you-want pricing strategies in a German consumer behaviour context," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 18(1), pages 82-100.
    • Handle: RePEc:ids:gbusec:v:18:y:2016:i:1:p:82-100
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    Citations

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    Cited by:

    1. Elisa Hofmann, 2020. "The power of close relationships and audiences: Interpersonal closeness and payment observability as determinants of voluntary payments," Jena Economics Research Papers 2020-016, Friedrich-Schiller-University Jena.
    2. Gerpott, Torsten J. & Schneider, Christina, 2016. "Buying behaviors when similar products are available under pay-what-you-want and posted price conditions: Field-experimental evidence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 65(C), pages 135-145.
    3. Gerpott Torsten J., 2016. "A review of the empirical literature on Pay-What-You-Want price setting," Management & Marketing, Sciendo, vol. 11(4), pages 566-596, December.
    4. Rafael Luis Wagner, 2019. "Lowering consumers’ price image without lowering their internal reference price: the role of pay-what-you-want pricing mechanism," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 18(4), pages 332-341, August.
    5. Jordi Tena‐Sánchez & Francisco J. León‐Medina & José A. Noguera, 2020. "Empathic cultural consumers: Pay what you want in the theater," Journal of Consumer Affairs, Wiley Blackwell, vol. 54(4), pages 1213-1245, December.
    6. Dilaysu ÇINAR, 2018. "€Œpay What You Want Pricing Strategy†As A New Sales Promotion Method - An Experimental Study On Food And Beverage Businesses," Turkish Journal of Marketing, Ali ÇaÄŸlar Çakmak, vol. 3(2), pages 1-19.
    7. Hofmann, Elisa & Fiagbenu, Michael E. & Özgümüs, Asri & Tahamtan, Amir M. & Regner, Tobias, 2021. "Who is watching me? Disentangling audience and interpersonal closeness effects in a Pay-What-You-Want context," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 90(C).
    8. Elisa Hofmann & Michael E. Fiagbenu & Asri Özgümüs & Amir M. Tahamtan & Tobias Regner, 2018. "My Peers are Watching me - Audience and Peer Effects in a Pay-What-You-Want Context," Jena Economics Research Papers 2018-019, Friedrich-Schiller-University Jena.

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