THERE IS NOTHING PERMANENT EXCEPT CHANGE: ANALYZING INDIVIDUAL PRICE DYNAMICS IN 'PAY-WHAT-YOU- WANT' SITUATIONS

摘要

In contrast to conventional seller-supplied pricing, participative pricing instruments actively involve customers in the pricing process, positively affecting customer satisfaction (Chandran and Morwitz 2005) and demand (Kim, Natter, and Spann 2009). Pay-what-you-want pricing (PWYW) is the most extreme form of participative pricing, because customers alone specify prices. Sellers must accept any price, even if it is below their costs or zero (Kim, Natter, and Spann 2009). Thereby, PWYW pricing poses a major threat to sellers despite the potential benefits it of fers.