“PAY WHAT YOU WANT PRICING STRATEGY” AS A NEW SALES PROMOTION METHOD - AN EXPERIMENTAL STUDY ON FOOD AND BEVERAGE BUSINESSES

Main Article Content

Dilaysu ÇINAR
http://orcid.org/0000-0002-5306-9031
İbrahim KIRÇOVA

Abstract

      In this study, it has been tried to determine whether the “Pay What You Want (PWYW) Pricing” strategy can be used as a new sales promotion method. In this direction, average payment voluntariness of consumers towards the promotional product sold at PWYW pricing have tried to determine. The study also has been attempted to obtain information about what may be the elements determining the payment voluntariness of the consumers and what will be the consumers’ attitude towards the firm that applies the PWYW pricing method and promotion used with PWYW. As a result of the study, it has been determined that consumers may have more payment voluntariness to the promotional product if the company is not aim to make a profit. Additionally, it has been observed that as the level of knowledge about the reference price and as the level of satisfaction, altruism, income and fairness increases, the payment voluntariness of consumers increases. Finally, it has reached that the participants can be in a positive attitude towards the promotion and company applying this method.

Downloads

Download data is not yet available.

Article Details

How to Cite
ÇINAR, D., & KIRÇOVA, İbrahim. (2018). “PAY WHAT YOU WANT PRICING STRATEGY” AS A NEW SALES PROMOTION METHOD - AN EXPERIMENTAL STUDY ON FOOD AND BEVERAGE BUSINESSES. TURKISH JOURNAL OF MARKETING, 3(2), 65-83. https://doi.org/10.30685/tujom.v3i2.36
Section
Articles
Author Biography

Dilaysu ÇINAR, Beykent University

İşletme Bölümü, Dr Öğr. Üyesi

References

Chen, H., Marmorstein, H., Tsiros, M., & Rao, A. R. (2012). When More is Less: The Impact of Base Value Neglect on Consumer Preferences for Bonus Packs Over Price Discounts. Journal of Marketing, 76(4), 64- 77.
Dorn, T., & Suessmair, A. (2016). Is It Really Worth It? A Test of Pay- What-You-Want Pricing Strategies In A German Consumer Behavior Context. Global Business and Economics Review, 18, 82-100.
Isaac, R. M., Lightle, J. P., & Norton, D. A. (2014), The Pay-What-You- Want Business Model: Warm Glow Revenues and Endogenous Price Discrimination. Journal of Behavioral and Experimental Economics, 57, 215-223.
Kim, J. Y., Natter, M., & Spann, M. (2008). Pay What You Want: A New Participative Pricing Mechanism. Journal of Marketing, 73, 44- 58.
Kim, J. Y.,Kaufmann, K., & Stegemann, M. (2013). The Impact of Buyer–Seller Relationships and Reference Prices on The Effectiveness of The Pay What You Want Pricing Mechanism. Marketing Letters, 24, 1– 15.
Riener, G., & Christian, T. (2012). Norms, Moods, and Free Lunch: Longitudinal Evidence on Payments from A Pay-What-You-Want Restaurant. The Journal of Socio-Economics, 41, 476-483
Schmidt, K. M., Martin, S., & Robert, Z. Pay What You Want as a Marketing Strategy in Monopolistic and Competitive Markets. Management Science, 61(6), 1217-1236