Pricing in consumer digital markets: A dynamic framework. Issue 3 (August 2019)

• Record Type: Journal Article
• Authors: Reisman, Richard; Payne, Adrian; Frow, Pennie
• Is Part Of: Australasian marketing journal. Volume 27:Issue 3(2019)
• Page Start: 139
• Page End: 148
• Publication Date: 2019-08
• Subjects: Pricing -- Participative pricing -- Digital products -- Pay what you want -- FairPay; Marketing -- Australasia -- Periodicals; Marketing -- Periodicals; 658.8480905
• DOI: 10.1016/j.ausmj.2019.07.002
• Languages: English
• ISSNs: 1441-3582

Abstract

Abstract: Supplier firms are increasingly seeking new ways to personalize their offers and differentiate their products, especially in contested digital markets. One approach that shows promise involves encouraging customers to participate in pricing decisions using schemes such as "pay-what-you-want" where the customer has an input into determining the price. These approaches can benefit both the customer in terms of paying a reasonable price and reducing risk, and the supplier in terms of increasing sales and generating deep customer insights that can assist in relationship development. However, extant research shows limitations associated with these pricing approaches and, despite some qualified successes, there has not been widespread adoption in businesses. This study extends consideration of existing participative pricing schemes and proposes a new conceptual framework, termed FairPay. This framework overcomes many of the limitations of previous approaches, while addressing important challenges, especially those faced by many digital product suppliers. The framework offers an attractive pricing solution for both customers and suppliers, ensuring an equitable exchange that is based on value-in-use. We discuss the application of this framework in the context of digital products, where the approach has special promise. Chinese Abstract: 供应商越来越多地寻求新的方式来个性化和差异化他们的产品, 特别是在竞争激烈的数字市场. 其中一种具有前景的方法是鼓励客户使用 "随你付" (pay-what-you-want) 等方案参与定价决策, 在这种方案中, 客户参与决定价格. 这些方法在支付合理的价格和降低风险方面对客户有利, 在增加销售和产生有助于关系发展的深刻客户洞察方面对供应商有利. 然而, 现有的研究表明, 这些定价方法存在局限性, 尽管取得了一些成功, 但还没有在企业中得到广泛采用. 这项研究扩展了对现有参与式定价方案的考虑, 并提出了一个新的概念框架, 称为 FairPay. 这个框架克服了以前方法的许多限制, 同时解决了重要的挑战, 特别是许多数字产品供应商所面临的挑战. 该框架为客户和供应商提供了一个有吸引力的定价解决方案, 确保基于使用价值的公平交换. 我们讨论了这个框架在数字产品中的应用, 这种方法在数字产品中有特殊的前景.