Pay-What-You-Want. What Drives Up the Price?
If you could name your price for items ranging from food to music and shows, how much would you pay? It is a concept that some establishments, such as Panera Cares cafés in St. Louis and Boston, use to help feed customers who cannot afford to pay. The café lists suggested donations next to each meal, but it is up to customers to pay-what-they-want.
According to True Viral News, a number of different factors influence how much a customer will spend when given a choice. One factor includes social norms. Jennifer Wiggins, Ph.D., associate professor in Kent State University’s College of Business Administration, explains how face-to-face interactions can yield higher payment as opposed to online purchases.
“When customers are interacting with an employee in a brick-and-mortar setting, they are likely to pay more due to social pressures to appear fair,” Wiggins said. She also says customers will pay more if they want to avoid judgment.