Innovative Pricing Strategies: A Primer
31 Pages Posted: 15 Aug 2014
Date Written: August 13, 2014
This article demonstrates how various concepts derived from marketing and behavioral economics can be useful to accountants and others whose advice is sought on the setting of prices. In particular, it shows that a one-price policy may not always be ideal. Using price as a strategic tool can increase both profit and customer satisfaction. Pricing strategies discussed include segmented (tier) pricing, pay-what-you-want pricing, pricing digital products, and peak-user pricing. The ethical implications of pricing decisions are also discussed.
Keywords: Pricing strategies, behavioral economics, anchoring, framing, segmented pricing, peak-user pricing, pay-what-you-want pricing, ethics of pricing, tragedy of the commons
JEL Classification: A22, A23, D81, G18, G21, I20, L20, L21, M14, M19, M31, Q20, Q38
Suggested Citation: Suggested Citation