Kish: Where Customers Pay As They Wish

Kim Ju-Young, Natter Martin and Martin Spann
Additional contact information
Kim Ju-Young: University of Frankfurt, jukim@wiwi.uni-frankfurt.de
Natter Martin: University of Frankfurt, natter@wiwi.uni-frankfurt.de

Review of Marketing Science, 2010, vol. 8, issue 2, 1-14

Abstract: New restaurants often do not manage to succeed within a reasonable amount of time. Exotic restaurants especially face the problem that price promotions may not attract new customers because prospective customers might associate very low prices for unfamiliar food with a high functional risk. This paper describes how Pay-What-You-Want (PWYW), a new pricing mechanism, was successfully implemented at Kish, a moderately priced Persian restaurant in downtown Frankfurt. After the initial testing phase, which had the characteristics of a promotional offer, the restaurant decided to permanently offer its buffet lunch under PWYW conditions. We report the long-term effects of this decision as well as a simulation demonstrating that profitability is mainly based on 'trading up' the continuous inflow of new customers to the more profitable dining offer where prices are fixed.

Keywords: Pay-What-You-Want; pricing (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

Downloads: (external link)
https://doi.org/10.2202/1546-5616.1118 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:revmkt:v:8:y:2010:i:2:p:1-14:n:3

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/roms/html

DOI: 10.2202/1546-5616.1118

Access Statistics for this article

Review of Marketing Science is currently edited by Ram C. Rao

More articles in Review of Marketing Science from De Gruyter
Bibliographic data for series maintained by Peter Golla ().