What You Ask Changes What I Pay: Framing Effects in Pay What You Want Pricing

Abstract

This research examines the effect of message framing on consumers’ chosen prices in pay what you want pricing. Across three field studies, the traditional Pay What You Want message frame consistently leads to the lowest prices paid, while a Pay What You Think It’s Worth message frame solicits the highest prices. A Pay What You Can message frame is sometimes similar to a Pay What You Want frame and sometimes to a Pay What You Think It’s Worth message frame. Laboratory studies confirm that the mixed results of the Pay What You Can message frame are due to a moderating influence of consumers’ ability to pay, and the positive effect of the Pay What You Think It’s Worth message frame is due in part to an attenuation of the consumer’s motivation to be self-interest seeking.