The pay what you want pricing strategy applied to digital products: an essay

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.