Beyond Posted Prices: The Past, Present, and Future of Participative Pricing Mechanisms

Forthcoming in Customer Needs and Solutions

Posted: 6 Feb 2017 Last revised: 29 Nov 2017

See all articles by Martin Spann

Martin Spann

Ludwig Maximilian University of Munich (LMU) - Faculty of Business Administration (Munich School of Management)

Robert Zeithammer

University of California, Los Angeles (UCLA) - Anderson School of Management

Marco Bertini

ESADE - Ramon Llull University

Ernan Haruvy

University of Texas at Dallas - Naveen Jindal School of Management

Sandy D. Jap

Emory University - Department of Marketing

Oded Koenigsberg

London Business School - Department of Marketing

Vincent Mak

University of Cambridge - Cambridge Judge Business School

Peter T. L. Popkowski Leszczyc

University of Queensland - Business School

Bernd Skiera

University of Frankfurt - Department of Marketing

Manoj Thomas

Cornell University - Samuel Curtis Johnson Graduate School of Management

Date Written: September 29, 2017

Abstract

Driven by the low transaction costs and interactive nature of the internet, customer participation in the price-setting process has increased. Today, platforms such as eBay have popularized online auctions on a global scale, Priceline has made headlines with its name-your-own-price (NYOP) business model, and Humble Bundle has enabled independent musicians and game developers to market their works through pay-what-you-want (PWYW) pricing. Advertising exchanges conduct several hundred million individual auctions per day to sell online advertising slots. The present paper contributes to the literature on participative pricing in three ways. First, we propose a definition of participative pricing mechanisms, as well as a useful taxonomy. Second, we discuss the current understanding by synthesizing conceptual and empirical academic literature. Third, we outline promising research questions with a key focus on the related behavioral aspects of buyers and sellers.

Keywords: Pay What You Want, Name Your Own Price, Charity Auctions, Outcome and process satisfaction, consumer behavior

Suggested Citation

Spann, Martin and Zeithammer, Robert and Bertini, Marco and Haruvy, Ernan and Jap, Sandy D. and Koenigsberg, Oded and Mak, Vincent and Popkowski Leszczyc, Peter T. L. and Skiera, Bernd and Thomas, Manoj, Beyond Posted Prices: The Past, Present, and Future of Participative Pricing Mechanisms (September 29, 2017). Forthcoming in Customer Needs and Solutions. Available at SSRN: https://ssrn.com/abstract=2912151 or http://dx.doi.org/10.2139/ssrn.2912151

Martin Spann (Contact Author)

Ludwig Maximilian University of Munich (LMU) - Faculty of Business Administration (Munich School of Management) ( email )

Ludwigstr. 28
Munich, 80539
Germany

Robert Zeithammer

University of California, Los Angeles (UCLA) - Anderson School of Management ( email )

110 Westwood Plaza
Los Angeles, CA 90095-1481
United States

Marco Bertini

ESADE - Ramon Llull University ( email )

Avinguda de la Torre Blanca, 59
Sant Cugat del Vall├Ęs, 08172
Spain

Ernan Haruvy

University of Texas at Dallas - Naveen Jindal School of Management ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States

Sandy D. Jap

Emory University - Department of Marketing ( email )

Goizueta Business School
1300 Clifton Road
Atlanta, GA 30322
United States

Oded Koenigsberg

London Business School - Department of Marketing ( email )

Sussex Place
Regent's Park
London, NW1 4SA
United Kingdom

Vincent Mak

University of Cambridge - Cambridge Judge Business School ( email )

Trumpington Street
Cambridge, CB2 1AG
United Kingdom
+44 (0)1223 764295 (Phone)
+44 (0)1223 339701 (Fax)

Peter T. L. Popkowski Leszczyc

University of Queensland - Business School ( email )

Brisbane, Queensland 4072
Australia

Bernd Skiera

University of Frankfurt - Department of Marketing ( email )

Theodor-Adorno-Platz 4
Frankfurt am Main, 60323
Germany
+49 69 798 34640 (Phone)
+49 69 798 35001 (Fax)

HOME PAGE: http://www.skiera.de

Manoj Thomas

Cornell University - Samuel Curtis Johnson Graduate School of Management ( email )

353 Sage Hall
Ithaca, NY 14853
United States
607-255-7207 (Phone)
607-254-4590 (Fax)

HOME PAGE: http://forum.johnson.cornell.edu/faculty/mthomas/

Register to save articles to
your library

Register

Paper statistics

Abstract Views
448
PlumX Metrics