Investigating relative impact of reference prices on customers’ price evaluation in absence of posted prices: a case of Pay-What-You-Want (PWYW) pricing

Narwal, Preeti; Nayak, Jogendra Kumar

doi:10.1057/s41272-019-00198-2

Cited by 7 publications

(7 citation statements)

References 62 publications

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“…Consumers’ selection of reference points can vary according to different contexts (Choi & Mattila, 2018; Narwal & Nayak, 2019). For example, consumers will use different reference points when evaluating a brand’s quality versus value.…”

Section: Resultsmentioning

confidence: 99%

Reference points in consumer choice models: A review and future research agenda

Wang

Sun

Zhang

et al. 2020

Int J Consumer Studies

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Reference‐dependent consumer preference and choice have been the focus of marketing and behavioural decision researchers for decades. Researchers have proposed different ways of incorporating reference‐dependent consumer preference into quantitative models. No extant research, however, systematically examines and evaluates these modelling methods. As more empirical research on reference‐dependent preference emerges in different areas, this review is both timely and of great importance. The paper pays special attention to empirical articles that incorporate reference points into consumer choice models and classifies the models in terms of reference point operationalization, model framework and reference point heterogeneity. By comparing and evaluating various conceptualizations of reference points and extant empirical choice models, we seek to provide guidance and directions in terms of theory, contexts and methodology (TCM) to future researchers with different application areas and focus of studies. The paper synthesizes the previous findings and identifies current research gaps, which allow us to provide future directions in this research domain.

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Section: Resultsmentioning

confidence: 99%

Reference points in consumer choice models: A review and future research agenda

Wang

Sun

Zhang

et al. 2020

Int J Consumer Studies

View full text Add to dashboard Cite

show abstract

“…The impact of product value on payment behavior differs based on the timing of product receipt, with a higher product value leading to increased payments after receipt, a lower product value having a mitigated effect, and a product value that is sufficiently low leading to a reversed effect. (Narwal & Nayak, 2020). Moreover, Roy et al (2016) find that the ERP influences the impact of social visibility and purchase motivation on customers' payment decisions.…”

Section: Kc Et Al (2023) Field Experiment Lab Experiments and Online ...mentioning

confidence: 96%

Enhancing the profitability of pay what you want: A study of suggested prices

Yen,

Li,

Liu

2024

Psychology and Marketing

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A suggested price is oftentimes utilized in practice to enhance the profitability of pay what you want (PWYW). In this paper, we focus on this suggested price strategy. We conduct five experiments to explore factors that impact buyers' payments after seeing the suggested price. In Study 1, we show a relationship between the suggested price and payments. Intuitively, a higher suggested price results in increased payments. Studies 2A and 2B demonstrate that the relationship between the suggested price and payments is mediated by cost estimation, while Studies 3A and 3B display that the relationship is moderated by the presence of a charitable element. Interestingly, in the case with a charitable element, increasing the suggested price does not stimulate an increment in payments on a par with the case without a charitable element. This paper proposes that sellers who use PWYW could employ a suggested price to furnish buyers with pertinent cost information, but utilizing PWYW with a suggested price may not be suitable for products with a charitable component.

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“…Because of these factors, NYOP is significantly more complicated than PWYW for buyer and seller (Spann et al, 2018). Narwal and Nayak (2020) explored customers' evaluation of the offered price suggestion under PWYW pricing. Results show that respondents exhibit the relatively greater influence of external reference price than internal reference price in the price evaluation process.…”

Section: Literature Reviewmentioning

confidence: 99%

Participative pricing and donation programs in a socially concerned supply chain

Sabbaghnia

Heydari

Razmi

2022

Corp Soc Responsibility Env

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This study analyzes a participative pricing scheme, name‐your‐own‐price, as a practical marketing mechanism for a socially sustainable supply chain. There is an ongoing argument on the profitability of participative pricing. This study introduces a different approach in capturing optimal decisions of a corporate social responsibility practice. In the proposed approach, the manufacturer is willing to donate as long as, (I) business image is improving; thus, the potential market size is expanding and, (II) consumers are also donating through the proposed donation scheme. Results indicate that not only the total earnings are increasing, the market participation is also boosted. Further, operational decisions are coordinated successfully with a revenue‐sharing contract. Findings imply that there is a minimum threshold for manufacturer's participation ratio to ensure the profitability of the proposed scheme, not to mention consumer's donation size. Sensitivity analysis is conducted to prove the applicability of the proposed mechanism in real‐world applications.

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Investigating relative impact of reference prices on customers’ price evaluation in absence of posted prices: a case of Pay-What-You-Want (PWYW) pricing

Cited by 7 publications

References 62 publications

Reference points in consumer choice models: A review and future research agenda

Reference points in consumer choice models: A review and future research agenda

Enhancing the profitability of pay what you want: A study of suggested prices

Participative pricing and donation programs in a socially concerned supply chain

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