“I will pay you more, as long as you are transparent!”: An investigation of the pick-your-price participative pricing mechanism

Participative pricing strategies are increasingly common nowadays. In addition to have an impact on consumers’ purchase decision, these can brand evaluations. This paper is investigation of the Pick-Your-Price (PYP) strategy, which most novel participative approach. Adopting a mixed-method approach, we shed light perceptions PYP and evaluate possible configuration (i.e. featuring default price optionarchitecture) evaluations choice. We find that when placed highest price, consumers ascribe negative causal attribution company which, in turn, will result more attitudes. Interestingly, introducing transparency improves attributions attitudes as well estimated revenues for company. Moreover, also test defaults context communicating different Corporate Social Responsibility practices (internal vs. external) finding communication external CSR stimulates positive and, higher willingness settings. study represents one first explorations providing interesting managerial implications marketers willing experiment with it.