Four Key Qualities of Any "Pay As You Wish Pricing Strategy
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When “pay as you wish” pricing makes sense--and how to make it work for you.
Typically, a seller turns to “pay as you wish” pricing because he believes the product will drive business for a higher margin product, because he believes that “pay as you wish” can yield more than conventional pricing, or both. Radiohead’s In Rainbows campaign shared the same four key qualities as any successful “pay as you wish” pricing program....
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Jagmohan Raju is Joseph J. Aresty Professor, Professor of Marketing, and Chairperson of the Marketing Department at The Wharton School. His research areas include pricing new products, price discounts, coupons, store brands, retailing, salesforce compensation, and managing distribution channels. His recent consulting clients have ranged from Wyeth and Medtronics to Warner Home Video.
Z. John Zhang is Murrel J. Ades Professor and Professor of Marketing at The Wharton School. His research areas include pricing and revenue models, targeted pricing strategies, retail management, price engineering, and competitive strategies. His most recent consulting engagements are with Ikaria and ExxonMobil.
