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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NUSHRRATT SHARES MOTION POSTER OF HER NEW FILM
MUMBAI: Bollywood actress Nushrratt Bharuccha, on Thursday, shared a motion poster of her new upcoming film ‘Janhit Mein Jaari’ on her social media.
Nushrratt took to her Instagram and shared the film’s motion poster, which had a super catchy foot-tapping soundtrack. In the caption, she wrote, “Ek womaniya sab pe bhaari, yeh suchna hai #JanhitMeinJaari.”
Producer Vinod Bhanushali and writer-director Raaj Shaandilyaa had earlier announced the film with a quirky poster. Shaandilyaa has also penned the film’s script, which has been directed by debutant, Jai Bantu Singh.
Produced by Bhanushali Studios Limited and Think Ink Picturez in association with Shree Raghav Entertainment LLP, the movie commenced filming today in Chanderi, Madhya Pradesh.
ANUSHKA SHARES POST-WORKOUT SNAP
MUMBAI: Bollywood diva Anushka Sharma is back in town with her daughter Vamika after being in the UK with her husband Virat Kohli as India toured England for a cricket series.
Taking to her Instagram story, Anushka posted a surreal sea view picture from the balcony of her Mumbai residence. In the next IG story, she shared a post-workout selfie of herself. Anushka can be seen sporting a lime green t-shirt with her hair tied in a bun, as she hit the workout session. Alongside the picture, she also added a sticker that reads “Sweaty Selfie.” For the unversed, Anushka had gone to the UK with her husband Virat and daughter Vamika in July. She had shared a series of pictures from her English countryside getaway. The star couple had also celebrated Vamika’s six-month birthday in London.
On the work front, Anushka was last seen in the 2018 movie ‘Zero’, co-starring actors Shah Rukh Khan and Katrina Kaif.
KIRTI KULHARI FULFILLS HER DREAM
MUMBAI: People who love nature should travel in toy trains once in their life to experience the scenic routes that have been carved through mountains. Actor Kirti Kulhari recently fulfilled her dream of taking a toy train ride in Shimla, Himachal Pradesh. Taking to Instagram, Kirti posted a few picturesque pictures from her toy train journey. “Is the journey more important than the destination??? My answer is a ‘BIG YES’..#toytrain #jutogh #simla #himachalpradesh #traveldiaries. P.S – finally one more thing ticked off in my #bucketlist .. sitting in a #toytrain,” she captioned the post. The Kalka-Shimla toy train is a popular way of reaching Shimla. The particular railway line was declared a UNESCO world heritage line in 2008 and has been a great tourist attraction since then.
‘GODFATHER OF BLACK CINEMA’ MELVIN VAN PEEBLES NO MORE
WASHINGTON: Veteran filmmaker Melvin Van Peebles has passed away at the age of 89. According to CNN, Melvin died at his home in Manhattan on Tuesday night. The news of his demise was announced by his family. “Dad knew that Black images matter. If a picture is worth a thousand words, what was a movie worth? We want to be the success we see, thus we need to see ourselves being free. True liberation did not mean imitating the colonizer’s mentality. It meant appreciating the power, beauty and interconnectivity of all people,” Melvin’s son Mario Van Peebles said in a statement.
Melvin was popularly known as the godfather of modern Black cinema. He had helped champion a new wave of modern Black cinema in the 1970s — especially with his films ‘Watermelon Man’ and ‘Sweet Sweetback’s Baadasssss Song’. Melvin also was also a novelist, theatre impresario, songwriter, musician and painter.
RANVEER URGES TO CREATE INCLUSIVE SPACE FOR THE HEARING-IMPAIRED
MUMBAI : September 23 is celebrated as the International Day of Sign Languages, and on this occasion, Bollywood actor Ranveer Singh has made a special appeal to the youth of the country.
Basically, he urged the youth to create an inclusive space for the deaf community. “If there is anything we all have come to value and embrace in the last year and a half is the power of community and being there for each other. My message to the youth today would be to keep doing the work you are… and if in any way you can create or propagate an inclusive space by working with the Deaf community, please do. From hospitality to education to creative arts. We can only make this change together,” Ranveer said.
Ranveer has been working hard to help the community. He has also been urging authorities to consider and declare Indian Sign Language (ISL) as the 23rd official language of India and also signed a petition aimed at furthering awareness of this cause.
Tom Hanks’ sci-fi movie ‘Finch’ drops first trailer
WASHINGTON: The first official full trailer of Hollywood star Tom Hanks’ upcoming sci-fi adventure movie ‘Finch’ has recently been dropped by Apple TV+, where it will premiere on November 5.
The movie narrates the story of a lone survivor of a global apocalypse who has embarked on a dangerous journey to find a new home for his unlikely family, a dog and a newly created robot. Hanks has portrayed the titular character, a robotics engineer, who is the only survivor of a solar event. Finch creates the robot named Jeff (Caleb Landry Jones) to take care of his loyal companion, dog Goodyear, when he’s gone.
The almost 3-minute trailer of ‘Finch’ begins with Hanks’ character saying “It all happened so fast. There was a solar flare. Goodbye crops and food, goodbye everything,” as scenes of a deserted, dystopian America pass by. “So I hid, frightened and so alone, and I found you,” he continues, addressing the sweet dog.
After Finch develops the robot Jeff, it learns its purpose (“Robots must protect dog”), the trio then set out west, embarking on a treacherous journey to beat a deadly storm to safety. “If we don’t go before that storm hits, we’ll die. All of us,” Finch says in the trailer.
During the journey, they experience some lighthearted moments on the road, Finch teaching Jeff how to drive, Jeff learning how to “talk dog”, all while the pressures of the post-apocalyptic world seem to be closing in. Along the way, they navigate through extreme weather phenomena, merciless heat, UV radiation, and other unexpected challenges.
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