Consumer reactions to pay‐what‐you‐want and name‐your‐own‐price mechanisms

Pay-what-you-want (PWYW) and name-your-own-price (NYOP) participative pricing mechanisms are becoming more popular among firms. In response, researchers have examined separate outcomes for each mechanism. However, questions remain, especially regarding which mechanism is most beneficial consumers companies. Therefore, our main objective to investigate the role of these on consumers' satisfaction, pain payment, amount money they intend pay. We also explore perceived control as mediating effect satisfaction payment. Results from two experimental studies indicate that satisfied with feel less payment under PWYW offers rather than NYOP offers, but pay would paid NYOP. External reference prices (ERPs) act a boundary condition. That is, in both conditions, when retailers use ERPs, The article concludes implications using pricing.