When โpay as you wishโ pricing makes sense--and how to make it work for you.
Typically, a seller turns to โpay as you wishโ pricing because he believes the product will drive business for a higher margin product, because he believes that โpay as you wishโ can yield more than conventional pricing, or both. Radioheadโs In Rainbows campaign shared the same four key qualities as any successful โpay as you wishโ pricing program....
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.