Pay What You Want Pricing as an Innovative Pricing Method
ncreased technological development and the innovations and conveniences offered to consumers encourage to companies day by day for different practices in order to gain competitive advantage. Although firms are often observed to bring innovations to the product in order to be perceived by consumers as superior to firms' competitors, it is obvious that they will not be enough alone. For this reason, companies have begun to implement innovative strategies in pricing strategies increasingly. One of the most remarkable of these strategies is the pay-what- you-want pricing method. In this method, the seller transfers the authority of determining the price to the consumer entirely. In the study, a literature review was performed on pay what you want pricing and factors affecting the voluntary payment in aforesaid pricing method have been established. In addition, the pay-what-you-want pricing method is discussed from a theoretical perspective.
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