Exploring the Role of Social Visibility and Goal Framing in PWYW Pricing

Rajat Roy, Piyush Sharma, Fazlul K. Rabbanee

Research output: Chapter in Book/Report/Conference proceedingConference contributionResearchpeer-review

Abstract

Pay what you want (PWYW) is a participative pricing mechanisms
that allows consumers to exercise full control over pricing by
letting them pay any price (including zero) for a product or service
(Chandran and Morwitz, 2005; Kim, Natter and Span, 2009). Despite
growing interest in PWYW pricing, there are still many research
gaps. First, Kim et al. (2009) explore only the direct effects of altruism,
price consciousness and reference prices on consumers’ willingness
to pay (WTP) but ignore their interactions with each other.
Second, there is mixed findings about the impact of social motivations
on PWYW pricing decisions with Kim et al. (2009) showing
that consumers pay a price higher than zero in ‘face-to-face’ PWYW
interactions; Gneezy et al. (2012) show that ‘social visibility’ has a
negative effect on the prices paid by the consumers, whereas Machado
and Sinha (2012) did not find any significant effect of social
visibility. We address both these research gaps in this paper by showing
that altruism does not have a direct influence on PWYW prices
and its impact is moderated by price consciousness. We also show
that price consciousness moderates the effect of internal reference
price on WTP. Finally, we find that social visibility moderates the
influence of consumer motivation (i.e., intrinsic or extrinsic) on their
willingness to pay in the PWYW context.
Original languageEnglish
Title of host publicationACR Conference Proceedings: Asia-Pacific Advances in Consumer Research
EditorsEcho Wen Wan, Meng Zhang
Place of PublicationDuluth, MN
PublisherAssociation for Consumer Research
Pages238-239
Number of pages2
Volume11
Publication statusPublished - 2015
Externally publishedYes
EventAssociation for Consumer Research - Hong Kong
Duration: 19 Jun 201521 Jun 2015

Conference

ConferenceAssociation for Consumer Research
Period19/06/1521/06/15

Fingerprint

Visibility
Pricing
Price consciousness
Altruism
Reference price
Extrinsic motivation
Intrinsic motivation
Pricing decisions
Direct effect
Exercise
Interaction

Cite this

Roy, R., Sharma, P., & Rabbanee, F. K. (2015). Exploring the Role of Social Visibility and Goal Framing in PWYW Pricing. In E. Wen Wan, & M. Zhang (Eds.), ACR Conference Proceedings: Asia-Pacific Advances in Consumer Research (Vol. 11, pp. 238-239). Duluth, MN: Association for Consumer Research.
Roy, Rajat ; Sharma, Piyush ; Rabbanee, Fazlul K. / Exploring the Role of Social Visibility and Goal Framing in PWYW Pricing. ACR Conference Proceedings: Asia-Pacific Advances in Consumer Research. editor / Echo Wen Wan ; Meng Zhang. Vol. 11 Duluth, MN : Association for Consumer Research, 2015. pp. 238-239
@inproceedings{a624428880064eb1bee42e82d5455051,
title = "Exploring the Role of Social Visibility and Goal Framing in PWYW Pricing",
abstract = "Pay what you want (PWYW) is a participative pricing mechanismsthat allows consumers to exercise full control over pricing byletting them pay any price (including zero) for a product or service(Chandran and Morwitz, 2005; Kim, Natter and Span, 2009). Despitegrowing interest in PWYW pricing, there are still many researchgaps. First, Kim et al. (2009) explore only the direct effects of altruism,price consciousness and reference prices on consumers’ willingnessto pay (WTP) but ignore their interactions with each other.Second, there is mixed findings about the impact of social motivationson PWYW pricing decisions with Kim et al. (2009) showingthat consumers pay a price higher than zero in ‘face-to-face’ PWYWinteractions; Gneezy et al. (2012) show that ‘social visibility’ has anegative effect on the prices paid by the consumers, whereas Machadoand Sinha (2012) did not find any significant effect of socialvisibility. We address both these research gaps in this paper by showingthat altruism does not have a direct influence on PWYW pricesand its impact is moderated by price consciousness. We also showthat price consciousness moderates the effect of internal referenceprice on WTP. Finally, we find that social visibility moderates theinfluence of consumer motivation (i.e., intrinsic or extrinsic) on theirwillingness to pay in the PWYW context.",
author = "Rajat Roy and Piyush Sharma and Rabbanee, {Fazlul K.}",
year = "2015",
language = "English",
volume = "11",
pages = "238--239",
editor = "{Wen Wan}, Echo and Meng Zhang",
booktitle = "ACR Conference Proceedings: Asia-Pacific Advances in Consumer Research",
publisher = "Association for Consumer Research",

}

Roy, R, Sharma, P & Rabbanee, FK 2015, Exploring the Role of Social Visibility and Goal Framing in PWYW Pricing. in E Wen Wan & M Zhang (eds), ACR Conference Proceedings: Asia-Pacific Advances in Consumer Research. vol. 11, Association for Consumer Research, Duluth, MN, pp. 238-239, Association for Consumer Research, 19/06/15.

Exploring the Role of Social Visibility and Goal Framing in PWYW Pricing. / Roy, Rajat; Sharma, Piyush; Rabbanee, Fazlul K.

ACR Conference Proceedings: Asia-Pacific Advances in Consumer Research. ed. / Echo Wen Wan; Meng Zhang. Vol. 11 Duluth, MN : Association for Consumer Research, 2015. p. 238-239.

Research output: Chapter in Book/Report/Conference proceedingConference contributionResearchpeer-review

TY - GEN

T1 - Exploring the Role of Social Visibility and Goal Framing in PWYW Pricing

AU - Roy, Rajat

AU - Sharma, Piyush

AU - Rabbanee, Fazlul K.

PY - 2015

Y1 - 2015

N2 - Pay what you want (PWYW) is a participative pricing mechanismsthat allows consumers to exercise full control over pricing byletting them pay any price (including zero) for a product or service(Chandran and Morwitz, 2005; Kim, Natter and Span, 2009). Despitegrowing interest in PWYW pricing, there are still many researchgaps. First, Kim et al. (2009) explore only the direct effects of altruism,price consciousness and reference prices on consumers’ willingnessto pay (WTP) but ignore their interactions with each other.Second, there is mixed findings about the impact of social motivationson PWYW pricing decisions with Kim et al. (2009) showingthat consumers pay a price higher than zero in ‘face-to-face’ PWYWinteractions; Gneezy et al. (2012) show that ‘social visibility’ has anegative effect on the prices paid by the consumers, whereas Machadoand Sinha (2012) did not find any significant effect of socialvisibility. We address both these research gaps in this paper by showingthat altruism does not have a direct influence on PWYW pricesand its impact is moderated by price consciousness. We also showthat price consciousness moderates the effect of internal referenceprice on WTP. Finally, we find that social visibility moderates theinfluence of consumer motivation (i.e., intrinsic or extrinsic) on theirwillingness to pay in the PWYW context.

AB - Pay what you want (PWYW) is a participative pricing mechanismsthat allows consumers to exercise full control over pricing byletting them pay any price (including zero) for a product or service(Chandran and Morwitz, 2005; Kim, Natter and Span, 2009). Despitegrowing interest in PWYW pricing, there are still many researchgaps. First, Kim et al. (2009) explore only the direct effects of altruism,price consciousness and reference prices on consumers’ willingnessto pay (WTP) but ignore their interactions with each other.Second, there is mixed findings about the impact of social motivationson PWYW pricing decisions with Kim et al. (2009) showingthat consumers pay a price higher than zero in ‘face-to-face’ PWYWinteractions; Gneezy et al. (2012) show that ‘social visibility’ has anegative effect on the prices paid by the consumers, whereas Machadoand Sinha (2012) did not find any significant effect of socialvisibility. We address both these research gaps in this paper by showingthat altruism does not have a direct influence on PWYW pricesand its impact is moderated by price consciousness. We also showthat price consciousness moderates the effect of internal referenceprice on WTP. Finally, we find that social visibility moderates theinfluence of consumer motivation (i.e., intrinsic or extrinsic) on theirwillingness to pay in the PWYW context.

M3 - Conference contribution

VL - 11

SP - 238

EP - 239

BT - ACR Conference Proceedings: Asia-Pacific Advances in Consumer Research

A2 - Wen Wan, Echo

A2 - Zhang, Meng

PB - Association for Consumer Research

CY - Duluth, MN

ER -

Roy R, Sharma P, Rabbanee FK. Exploring the Role of Social Visibility and Goal Framing in PWYW Pricing. In Wen Wan E, Zhang M, editors, ACR Conference Proceedings: Asia-Pacific Advances in Consumer Research. Vol. 11. Duluth, MN: Association for Consumer Research. 2015. p. 238-239