Pay-what-you-want for high-value priced services: Differences between potential, new, and repeat customers

Stangl, Brigitte; Kastner, Margit; Prayag, Girish

doi:10.1016/j.jbusres.2016.10.030

Cited by 33 publications

(13 citation statements)

References 29 publications

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“…Nonzero payments have been attributed to knowledge of prices paid by other consumers (Soule and Madrigal 2015), having a shared social responsibility with the seller (Gneezy et al 2010), possessing high levels of fairness and altruism (Gneezy et al 2010, 2012; Kim, Natter, and Spann 2009), self-signaling (Gneezy et al 2012; Jang and Chu 2012), social norms (Reiner and Traxler 2012), reputational concerns (Kim, Kaufmann, and Stegemann 2014), customer satisfaction, and income (Kim, Natter, and Spann 2009, 2014). More recently, Stangl, Kastner, and Prayag (2017) showed that repeat customers pay more than new and potential customers for a high-priced service.…”

Section: Background Literaturementioning

confidence: 99%

The Role of Gender in Pay-What-You-Want Contexts

Santana¹,

Morwitz²

2021

Journal of Marketing Research

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This research highlights how gender shapes consumer payments in Pay What You Want (PWYW) contexts. Four studies involving hypothetical and real payments show that men typically pay less than women in PWYW settings, due to gender differences in agentic versus communal orientation. Men approach the payment decision with an agentic orientation and women with a communal orientation. These orientations then shape payment motives and ultimately affect payment behavior. Because agentic men are more self-focused, their payment decisions are motivated by economic factors, resulting in lower payments. Conversely, communal women are more other-focused, and their payment decisions are motivated by both social and economic factors, resulting in higher payments. The findings additionally highlight how sellers can use marketing communications to increase the salience of social payment motives and demonstrate that by doing so, marketers can increase how much men pay without altering how much women pay in PWYW settings.

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Section: Background Literaturementioning

confidence: 99%

The Role of Gender in Pay-What-You-Want Contexts

Santana¹,

Morwitz²

2021

Journal of Marketing Research

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“…Welss (2018, p. 1) described the strategy as “no longer sufficient to meet the Museum’s daily operational demands.” Lower-than-expected payments may have caused some reversions. For example, PWYW is more effective when consumers are motivated by fairness (Gerpott and Schneider 2016), charity (Gneezy et al 2010), or relational concerns (Stangl, Kastner, and Prayag 2017). In addition, offering a reference price may cause consumers to pay only that or below that price because paying above it seems irrational.…”

Section: Conceptual Developmentmentioning

confidence: 99%

The Control–Effort Trade-Off in Participative Pricing: How Easing Pricing Decisions Enhances Purchase Outcomes

Wang¹,

Beck²,

Yuan³

2021

Journal of Marketing

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Participative pricing strategies may influence consumer purchase decisions; this research proposes specifically that firms’ delegation of pricing decisions to consumers can create a control–effort trade-off. Consumers favor greater pricing control but are deterred by the effort involved in deciding what to pay. Strategies such as pay what you want (PWYW) in turn might reduce purchase intentions due to the effort involved. In contrast, strategies that increase feelings of control but not perceived effort, such as pick your price (PYP) options that let consumers choose from a limited set of prices, could enhance pricing outcomes. A field study and four laboratory experiments confirm these propositions. The findings demonstrate the mixed effects of participative pricing, identify mediating mechanisms that explain these effects, and specify common moderating conditions that shape the outcomes of participative pricing. These results have notable implications for pricing theory and practice.

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Section: Social Responsibility Legitimacy and Loyaltymentioning

confidence: 99%

“…As for loyalty, it is the positive attitude of stakeholders towards the organization that makes it be their only option. A loyal stakeholder does not look for alternatives, but if it needs something, it looks for it in the organization (Stangl et al, 2017). This generates a numbers of advantages for the organization, such as the intention of maintaining long‐term relationships, improving its image or reputation or benefiting from positive word of mouth (Cachón‐Rodríguez, Prado‐Román, & Zúñiga‐Vicente, 2019; Miotto, Del‐Castillo‐Feito, & Blanco‐González, 2020).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Contribution of social responsibility to the work involvement of employees

Blanco‐González

Diéz‐Martín

Cachón‐Rodríguez

et al. 2020

Corp Soc Responsibility Env

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This research aims to analyze the contribution of social responsibility to the work involvement of employees through its influence on social capital, legitimacy and loyalty and which entail benefits for the organization such as its survival and its competitive advantage. The data for the empirical analysis were obtained through an online survey in the field of higher education. The data was processed using the structural equations technique (PLS-SEM). The findings show that, social responsibility significantly influences employees' organizational legitimacy. Social responsibility does not have a positive effect on employees' social capital directly, but through legitimacy. Social capital has a positive influence on employees' loyalty. Managers must make the social responsibility actions known to their employees and should involve them in these actions. This study is an original contribution in assessing the positive effects of social responsibility on social capital, legitimacy, and loyalty from the point of view of employees.

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Pay-what-you-want for high-value priced services: Differences between potential, new, and repeat customers

Cited by 33 publications

References 29 publications

The Role of Gender in Pay-What-You-Want Contexts

The Role of Gender in Pay-What-You-Want Contexts

The Control–Effort Trade-Off in Participative Pricing: How Easing Pricing Decisions Enhances Purchase Outcomes

Contribution of social responsibility to the work involvement of employees

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