Name-your-own-price as participative pricing strategy: a review of the literature from 2001–2017

Wagner, Rafael Luis; Pacheco, Natália Araújo

doi:10.1080/0965254x.2019.1569108

Cited by 8 publications

(10 citation statements)

References 60 publications

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“…By demonstrating the differences, we address calls for further investigation of PWYW and NYOP outcomes (Spann et al, 2018), especially regarding consumer reactions (Song & Jiang, 2018). We provide some insights to help answering queries about which pricing mechanisms have the best outcomes for consumers and companies (Wagner & Pacheco, 2020). We also extend the literature on pricing satisfaction regarding PWYW and NYOP, an under‐researched topic in studies of participative pricing (Wagner & Pacheco, 2020).…”

Section: General Discussion and Conclusionmentioning

confidence: 99%

“…We provide some insights to help answering queries about which pricing mechanisms have the best outcomes for consumers and companies (Wagner & Pacheco, 2020). We also extend the literature on pricing satisfaction regarding PWYW and NYOP, an under‐researched topic in studies of participative pricing (Wagner & Pacheco, 2020).…”

Section: General Discussion and Conclusionmentioning

confidence: 99%

“…Consumers have less control under NYOP than they have under PWYW, but they still participate in pricing decisions (Fay, 2004) and will be focused on making a strategic offer (Chandran & Morwitz, 2005). The distraction and the opportunity to pay less than posted price is expected to lower the pain of payment (Wagner & Pacheco, 2020). In summary, pricing mechanisms should have both Hypothesis 5.…”

Section: Pain Of Paymentmentioning

confidence: 99%

“…Most participative pricing studies have focused on consumer satisfaction with products or retailers/service providers (e.g., Gerpott, 2017; Kim et al, 2009). Only a few (Fay & Laran, 2009; Hinz et al, 2011) have considered how pricing mechanisms affect pricing satisfaction, a topic that remains on the research agenda (Wagner & Pacheco, 2020). Following studies showing that consumers derive satisfaction from positive expectation disconfirmation (Spreng et al, 1996), we propose that consumers react to PWYW by forming highly positive expectation disconfirmation (satisfaction), while they respond to NYOP with lower positive expectation disconfirmation (lower satisfaction) because PWYW is more unexpected than NYOP.…”

Section: Introductionmentioning

confidence: 99%

“…Researchers have also overlooked NYOP and PWYW impacts on the pain of payment (Wagner & Pacheco, 2020), a negative feeling that consumers experience when they pay for products or services (Prelec & Loewenstein, 1998). We argue that both NYOP and PWYW may lower the pain of payment because consumers are more focused on price setting strategies (Chandran & Morwitz, 2005).…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Consumer reactions to pay‐what‐you‐want and name‐your‐own‐price mechanisms

Wagner

Pacheco

Basso

et al. 2022

J of Consumer Behaviour

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Pay-what-you-want (PWYW) and name-your-own-price (NYOP) participative pricing mechanisms are becoming more popular among firms. In response, researchers have examined separate outcomes for each mechanism. However, questions remain, especially regarding which mechanism is most beneficial for consumers and companies. Therefore, our main objective is to investigate the role of these participative pricing mechanisms on consumers' pricing satisfaction, pain of payment, and amount of money they intend to pay. We also explore perceived control as mediating the effect of pricing mechanism on pricing satisfaction and pain of payment. Results from two experimental studies indicate that consumers are more satisfied with the pricing mechanism and feel less pain of payment under PWYW offers rather than under NYOP offers, but they intend to pay less than they would have paid for NYOP. External reference prices (ERPs) act as a boundary condition. That is, in both PWYW and NYOP pricing conditions, when retailers use ERPs, consumers intend to pay more but they are less satisfied with pricing and feel more pain of payment. The article concludes with implications for retailers using participative pricing. | INTRODUCTIONRetailers know that when consumers perceive that prices are reasonable, they are more satisfied with their purchases and form increased

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Section: General Discussion and Conclusionmentioning

confidence: 99%

Section: General Discussion and Conclusionmentioning

confidence: 99%

Section: Pain Of Paymentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Consumer reactions to pay‐what‐you‐want and name‐your‐own‐price mechanisms

Wagner

Pacheco

Basso

et al. 2022

J of Consumer Behaviour

Self Cite

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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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