Innovative Pricing Strategies: A Primer

31 Pages Posted: 15 Aug 2014

See all articles by Hershey H. Friedman

Hershey H. Friedman

City University of New York - Department of Business Management

Miriam Gerstein

Brooklyn College

Date Written: August 13, 2014

Abstract

This article demonstrates how various concepts derived from marketing and behavioral economics can be useful to accountants and others whose advice is sought on the setting of prices. In particular, it shows that a one-price policy may not always be ideal. Using price as a strategic tool can increase both profit and customer satisfaction. Pricing strategies discussed include segmented (tier) pricing, pay-what-you-want pricing, pricing digital products, and peak-user pricing. The ethical implications of pricing decisions are also discussed.

Keywords: Pricing strategies, behavioral economics, anchoring, framing, segmented pricing, peak-user pricing, pay-what-you-want pricing, ethics of pricing, tragedy of the commons

JEL Classification: A22, A23, D81, G18, G21, I20, L20, L21, M14, M19, M31, Q20, Q38

Suggested Citation

Friedman, Hershey H. and Gerstein, Miriam, Innovative Pricing Strategies: A Primer (August 13, 2014). Available at SSRN: https://ssrn.com/abstract=2480205 or http://dx.doi.org/10.2139/ssrn.2480205

Hershey H. Friedman (Contact Author)

City University of New York - Department of Business Management ( email )

Miriam Gerstein

Brooklyn College ( email )

New York, NY
United States

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