Factors that Influence Customers Participation Willingness to Pay and Payments in Pay What you Want Pricing

Abstract

newlineResearch on Pay What You Want (PWYW) pricing has received considerable attention newlinefrom academicians and practitioners. A large number of researchers have explored the factors newlinethat influence customers payment when exposed to PWYW. However, little work has been newlinedone to explore the factors influencing a customer s decision to be involved in the price-setting newlineprocess (PWYW). newlineThis study was undertaken with the aim of delineating participation, willingness to pay, newlineand payments from one another. Before mapping customers willingness to pay or payments, newlineit is crucial to determine if the customer wanted to buy from the seller selling at PWYW price. newlineFurther, willingness to pay is different from payments, and the present work has attempted to newlineestablish this difference in the context of PWYW. In order to address these three aspects of newlinePWYW pricing, three different frameworks have been designed. newlineResearch framework one has been designed to study the influence of the independent newlinevariables on customer participation in PWYW. Independent Variables have been derived from newlinethree different categories; namely, customer linked variables (perceived control, mindset, newlineconcern for fairness, price consciousness), product linked variable (brand familiarity), and newlinemarketer linked variable (external reference price). newlineThe second research framework was framed to study the relationship between the newlineindependent variables and the willingness to pay, which is the dependent variable. The newlineindependent variables for this study are the external reference price and the organizational newlineobjective of using PWYW pricing. The framework has been designed to explore the direct newlineeffect of the two independent variables and the interaction effect between organizational newlineobjective and the external reference price. newlineResearch framework three was designed to assess the effect of willingness to pay, newlinedescriptive norms, and social visibility on payments made by the customers. Other than the newlinedirect effect of the three independent variables, interactions between soci