In pay-as-you-want models, do consumers pay more or less when asked to make their payment decision before or after receiving the product or service? A new Journal of Marketing study finds that if the product is of high value, it's best to solicit payment after the product has been delivered. On the other hand, if the product is of low value, it's most effective to solicit payment before the product has been delivered.

Read the full Journal of Marketing article here: https://doi.org/10.1177/00222429221142234

Read an in-depth recap of this research here: https://www.ama.org/2022/12/20/ask-for-payment-before-or-after-the-effects-of-timing-in-pay-what-you-want-pricing/

Reference:

Raghabendra P. KC, Vincent Mak, and Elie Ofek, “Before or After? The Effects of Payment Decision Timing in Pay-What-You-Want Contexts,” Journal of Marketing. doi:10.1177/00222429221142234

Narrator: Josephine Stein

Acknowledgments: Sushma Kambagowni

Topics: sales, pricing, pay-what-you-want, behavioral pricing, payment timing, marketing, marketing strategy, marketing research, value perceptions

The JM Buzz is a production of the Journal of Marketing and is produced by University FM.

Ask for Payment Before or After? The Effects of Timing in Pay-What-You-Want Pricing