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Oxford Bulletin of Economics and Statistics (2022)
Matsuoka Hideaki
By Kim Ju-Young, Natter Martin, and Spann Martin
International Journal of Research in Marketing (2014)
Free sampling and price discounts are important, popular promotional tools used to attract new customers by reducing their risk of trial. The authors investigate pay-what-you-want (PWYW) as an alternative promotional tool to free sampling and price discounts in two field experiments. The authors find significant differences in perceived promotional characteristics and relevant performance measures, such as trial and repeat purchases by new customers. The entertaining and innovative character of PWYWinduces many people to try it. PWYW may yield a higher repeat purchase rate of new customers, and sellers using PWYW benefit from higher wordof- mouth behavior. Finally, PWYWyields the highest promotional revenues.
Kim J., Natter M., and Spann M. (2014) Sampling, Discounts or Pay-What-You-Want: Two Field Experiments. International Journal of Research in Marketing, 31, 327-334.