Static and dynamic pricing strategies: how unique for nonprofits?

Bruce Seaman ()

Chapter 10 in Handbook of Research on Nonprofit Economics and Management, 2018, pp 199-224 from Edward Elgar Publishing

Abstract: Coherent pricing strategies are important to for-profit firms, but can also be vital to nonprofit organizations. This is clearly true for the arts, education, and hospital and health-care sectors, but can also extend to nonprofits providing vital social services to low-income and otherwise vulnerable populations. By clarifying both static and dynamic pricing strategies that have been successfully used by for-profits, and examining their current application and potential expansion within the nonprofit sector, the striking similarities as well as ongoing distinctions between the two sectors are clarified. Especially in a political climate threatening to be less generous to nonprofits committed to diverse missions, understanding how to generate more earned revenue via shrewd price discrimination, tying/bundling, and yield management and peak-load pricing strategies is vital. Classic research results are incorporated with current theoretical and empirical developments to provide a comprehensive picture of pricing in the nonprofit sector.

Keywords: Business and Management; Economics and Finance (search for similar items in EconPapers)
Date: 2018
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