“Pay What You Want” Practice: Determinants of Consumer Choice and Pricing

The presence of a large number of pricing strategies allows the manufacturer to build different relationships with the consumer: as a rule, the price acts as a signal about the manufacturer’s own assessment of the product or service based on its costs. However, the relatively new practice of Pay What You Want has begun to attract more and more interest, in which the consumer receives the highest degree of freedom and independently determines the price for the product, and the manufacturer does not have the right to refuse the set price. The described pricing strategy remains poorly studied among Russian researchers, and also causes concern among firms, which makes the practice extremely uncommon. The purpose of this work is to determine the potential for development of practice through the study of factors of inclusion (non-inclusion) and pricing by consumers in PWYW. To achieve this goal, a review of foreign publications, descriptive and regression (using a logistic model) analyzes will be carried out based on the results of a survey of respondents. Thus, the study will complement the existing literature with conclusions about the main patterns of consumer behavior in conditions of complete freedom and efficiency in introducing practices into the work of an enterprise.