What if you could pay what you want for this research project? Understanding the key succes factors of participative pricing strategies.

Organizations increasingly adopt pay-what-you-want (PWYW) pricing systems, which allow customers to determine the amount of money they want to spend on products or services. Prior research examined extensively how customers determine the price they want to pay, as well as whether introducing PWYW pricing systems increases revenue. The literature did not yet examine how employees perceive PWYW pricing systems, despite the fact that they are very often the ones collecting these payments. This research therefore examines whether employees who receive low (high) payments in PWYW pricing systems have higher (lower) turnover intentions, lower (higher) work motivation, and are less (more) likely to support the PWYW pricing system.