Washington [US], February 28 (ANI): A recent study examined the potential benefits for firms and consumers of pick-your-price (PYP) over pay-what-you-want (PWYW) and fixed pricing strategies.
The study, forthcoming in the Journal of Marketing, is titled “The Control-Effort Trade-Off in Participative Pricing: How Easing Pricing Decisions Enhances Purchase Outcomes” and is authored by Cindy Wang, Joshua Beck, and Hong Yuan.
Over the past few decades, marketers have experimented with pricing strategies that delegate some or all of the price determination to consumers. Their goal is to engage consumers, boost sales, enhance brand loyalty, and contribute to a sellers’ overall competitive position.
However, in recent years many firms, including Priceline.com, Panera Bread, and the Metropolitan Museum of Art in New York, have abandoned their once-famous use of participative pricing and reverted to fixed prices.
The research team pins down and theorizes a tension that consumers experience when they evaluate a purchase that involves participative pricing. On one hand, consumers are attracted to the economically advantageous pricing terms (i.e., pay anything, including $0) that permit them to maximize their utility.
On the other hand, consumers must decide the final price, which takes effort. Building on this control-effort proposition, the researchers predict an overall negative effect of a pay-what-you-want (PWYW) pricing strategy because of the high effort involved in deciding the final price. They also predict an overall positive effect of a novel pick your price (PYP) strategy, which allows consumers to choose a price from a set of options.
PWYW and PYP both enhance feelings of pricing control, but PYP does not increase pricing effort since consumers find it relatively easy to make constrained choices. The study investigates the effects of PWYW and PYP with five studies in a variety of contexts (e.g., retail food, health services, financial services, entertainment, and household products).
that involves actual purchases and profit outlines establish the strong performance of PYP relative to fixed prices and PWYW. Findings from lab experiments further validate that compared to a fixed price, PWYW decreases purchase intentions because of the high pricing effort, even though it confers full pricing control.
However, because PYP provides a sense of pricing control but not pricing effort, it consequently increases purchase intentions. These effects hold regardless of the price level (high vs. low). Additionally, shopping motives (to save money or time) influence the effects of PWYW and PYP on purchase intentions.
As Wang explains, “When consumers are motivated to save money, the advantages of pricing control are amplified and the costs of pricing effort are minimized; thus, both PWYW and PYP increase purchase intentions relative to a fixed price. Alternatively, when consumers are motivated to save time, the disadvantages of pricing effort are enhanced and the advantages of pricing control are attenuated. Hence, under such conditions, PWYW performs worse than fixed price and PYP and fixed price’s performance are comparable.”
Also, single (vs. multiple) purchase decisions serve as a crucial factor, such that the positive effect of PYP on purchase choice attenuates over multiple purchase decisions because they require a great deal of effort. Lastly, in a parallel investigation in donation contexts, both PWYW and PYP perform significantly better than a fixed price strategy.
By adopting a consumer perspective on participative pricing, this study explains why PWYW might decrease purchases and specifies when PWYW and PYP will be more or less effective.
Beck says that “Managers can selectively implement PWYW and PYP to enhance their pricing performance. Adopting PWYW strategies requires careful consideration, and even if marketing research were to indicate that consumers favour higher pricing control, the execution might fail due to consumers’ reluctance to expend effort to determine their own prices. Alternatively, firms might benefit more generally from adopting PYP strategies.”
Consumers’ willingness to exert pricing effort also varies across shopping contexts. For example, the research suggests PWYW is more effective when consumers are motivated to save money, such as during the holiday season. Yet PWYW likely is less effective for busy consumers just seeking to get their holiday shopping done quickly.
For online stores that emphasize monetary savings, both PYP and PWYW could be more effective than conventional fixed prices. Contexts that involve donations are another scenario for which participative pricing, especially PWYW, promises benefits; consumers already expect to expend effort for the benefit of others. (ANI)
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JANHVI JOINS VIRAL ‘UP’ CHALLENGE, FLAUNTS HER DANCING SKILLS
NEW DELHI: Bollywood actor Janhvi Kapoor, who is currently holidaying in Maldives, on Monday joined the viral ‘Up’ challenge bandwagon and shared a video flaunting her killer dance moves. Janhvi took to her Instagram handle and shared a video dancing to the hit Cardi B song, along with the caption, “Missing the Filmfare stage so the poolside will have to do for now.” In the video, the ‘Gunjan Saxena’ actor, while dressed in a white top and blue denim could be seen matching steps with her friend, who was dressed in a blue bikini, paired with colourful yellow and pink pants. The duo was dancing next to a swimming pool, where they delivered an energetic performance on the upbeat song.
On the work front, Janhvi was last seen in ‘Roohi’, produced by Dinesh Vijan and Mrighdeep Singh Lamba. The film also starred Rajkummar Rao and Varun Sharma.
The horror-comedy became the first film to arrive in theatres after the government allowed cinema halls nationwide to operate at full capacity from February 1 with safety protocols put in place.
LOCKDOWN DOESN’T MEAN GIVING UP ON FITNESS: KAREENA
NEW DELHI: New mom Kareena Kapoor shared an inspiring post on Instagram, giving importance on the necessity to stay fit during the lockdown. On Sunday, the 40-year-old actress shared a photograph which showed that she walked 5,605 steps (5.11 km) within a few hours.
Kareena’s fitness mantra was loud and clear: “Lockdown doesn›t mean giving up,» she wrote in her caption. Kareena›s sister-in-law Saba Ali Khan commented on her post. She wrote: “Motivation… Now to try movement! Wish me luck! LOL. Stay safe and fit.”
Kareena and Saif Ali Khan welcomed a son on 21 February. “We have been blessed with a baby boy. Mom and baby are safe and healthy. Thank you to our well-wishers for their love and support,” Saif said in a statement.
Kareena and Saif married in 2012 after dating for a few years. They announced their second pregnancy last August. They are co-stars of films like Omkara, Agent Vinod, Kurbaan and Tashan. The actress announced her pregnancy memoir titled The Kareena Kapoor Khan Pregnancy Bible, on Taimur’s fourth birthday in December last year.
KANGANA RANAUT CELEBRATES PARENTS’ WEDDING ANNIVERSARY
NEW DELHI: Bollywood star Kangana Ranaut, on Monday, celebrated her parents’ wedding anniversary by sharing a picture of them on her social media and narrating the story of how they met.
The ‘Queen’ actor took to her Twitter handle and shared a rare throwback picture of her parents from their wedding day along with a heartfelt note that read, “Today is the wedding anniversary of my parents, growing up they lied to us that it was a conventional arranged marriage it’s only much later nani told us they had a raging affair, papa saw mom at a bus stand returning from college, took that bus every day till she noticed him.”
Narrating her parents, Asha Ranaut and Amardeep Ranaut’s love story, in a subsequent tweet she elaborated, “Papa saw mom at a bus stand returning from college, took that bus every day till she noticed him. When papa sent proposal, Nana ji (grandfather) brutally rejected cos papa didn’t have good reputation. Nana had selected a groom with government job for mom. She was his favourite and lovingly called her Guddi but mom fought all odds and convinced Nana. Thanks for that, happy anniversary.”
HUMA QURESHI RECALLS FIRST ENCOUNTER WITH ZACK SNYDER
NEW DELHI: Bollywood star Huma Qureshi, who will soon be making her Hollywood debut with the upcoming movie ‘Army of the Dead’, recently recalled her first encounter with the film’s director Zack Snyder.
During a recent special panel on YouTube, which hosted the female star cast of the upcoming Netflix movie, Huma, an avid admirer of Snyder recalled meeting him for the first time and said, “He was wearing a white shirt and had his camera on and I am like the white shirt is going to get dirty.” She recollected that it was a dream come true opportunity for Huma when while visiting the US, she gave an audition for some other work but instead got a chance to work with the legend himself.
Snyders ‘Army of the Dead’ takes place following a zombie outbreak that leaves Las Vegas in ruins and walled off from the rest of the world. When Scott Ward, a former zombie war hero, who is now flipping burgers on the outskirts of the town he now calls home is approached by casino boss Bly Tanaka, with the ultimate proposition to break into the zombie-infested quarantined zone and retrieve USD 200 million, that is sitting in a vault beneath the strip before the city is nuked by the government in 32 hours.
BHUMI TURNS ‘COVID WARRIOR’, OFFERS HELP TO THOSE IN ‘GENUINE NEED’
NEW DELHI: After recently recovering from the novel coronavirus, Bollywood star Bhumi Pednekar on Monday took up the mantle of a “COVID warrior” and extended support to her fans and followers on social media.
The ‘Bala’ actor took to her Instagram handle and asked her fans to DM her if they are in genuine need of medical supply. Sharing a statement Bhumi wrote, “#COVIDWARRIOR Dear All, As we move into the second wave of COVID-19 across India, I have created a highlight where I will be identifying resources to enable facilitation & access to medical supplies, plasma request and donors as the case may be.”
She asked fans to support her and continued, “While I am trying my level best to verify the numbers/contacts which are shared with me on a rampant & daily basis, there might be some numbers which may turn out to be fake. In the event that you find any information here not helpful/fake, please do let me know & I will immediately remove the same.”
Instilling the people with hope, she added, “This initiative is my small contribution to the huge battle that lies ahead to us. Please be patient & don’t lose hope! We’re in this together. Love, Bhumi.”
Bhumi had tested positive for COVID-19 on April 5 and was under home quarantine until she finally tested negative on April 17. The second wave has infected many people, and the number of positive cases has been rapidly rising.
IT’S A SCHEDULE WRAP FOR KRITI SANON FOR ‘BHEDIYA’
NEW DELHI: Bollywood actor Varun Dhawan, on Monday, announced Kriti Sanon’s schedule wrap for their upcoming horror-comedy flick ‘Bhediya’ while bidding adieu to the Ziro shooting set of the movie.
Varun hopped on to his Instagram handle and shared two adorable BTS pictures featuring him with Kriti at the exquisite location of their shoot set. While the first picture sees the lead hero holding her heroine on his back, the second one shows them flashing their big smiles for the camera. To address Kriti, Varun used the lyric of the song ‘Kya lagti hai haye Rabba’ from 1998 Govinda’s rom-com film ‘Dulhe Raja’ in the caption.
Continuing with it, he added, “Bahut maaza ayaa apka saath @kritisanon (Had a lot of fun with you) #wolfpack. It’s a sched wrap for kriti on #BHEDIYA as we say bye to ziro. Will miss you both”.
The horror-comedy drama ‘Bhediya’ will mark the ‘Badlapur’ star and ‘Heropanti’ star’s third collaboration with each other after sharing screen spaces in 2015 rom-com ‘Dilwale’ and 2019 ‘Kalank’.
The film which went on floors earlier in March at Arunachal Pradesh will bring together the dynamic duo of producer Dinesh Vijan and director Amar Kaushik, who also helmed the 2018 blockbuster movie ‘Stree’.
Starring Kriti Sanon, Varun Dhawan, Abhishek Banerjee, and Deepak Dobriyal, the story is written by National Award Winner, Niren Bhatt who also wrote intriguing scripts for ‘Bala’, ‘Made In China’, ‘Wrong Side Raju’. The film is slated to release in cinemas on April 14, 2022.
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