The Pay What You Want pricing strategy applied to digital products: an essay

Ana Isabel Torres (), César Lapa Barros (), Amélia Ferreira Silva () and Ricardo Jorge Silva ()
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Ana Isabel Torres: University of Aveiro and INESC TEC
César Lapa Barros: Polytechnic Institute of Porto, R. Jaime Lopes Amorim
Amélia Ferreira Silva: Polytechnic Institute of Porto
Ricardo Jorge Silva: Polytechnic Institute of Porto, R. Jaime Lopes Amorim

Journal of Revenue and Pricing Management, 2022, vol. 21, issue 5, No 5, 529-537

Abstract: Abstract This study aims to examine if the pricing strategy “Pay What You Want” can be the best option for the industry of digital products’ distribution, when compared with other fixed prices policies. To verify the adequacy of Pay What You Want Pricing strategy, we conducted an online survey using a sample of online consumers, to evaluate their buying intention and the willingness to pay regarding a set of digital products. Results show that, in some instances, the Pay What You Want Pricing strategy yields a greater sales revenue through the reduction of the individual amounts paid, which is counter-balanced by the increasing number of transactions. We conclude that this pricing strategy is as much suitable for companies, as they may potentially increase their sales revenue.

Keywords: Pricing strategy; Pay What You Want; Digital products; Sales revenue; Cost structure (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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DOI: 10.1057/s41272-021-00355-6

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