Subscription or Pay as You Go: A Pricing Question for Infrequently Used Services
Pay as you go pricing (PAYGP) appears to be the most logical pricing scheme for infrequently used services such as a spa or a saloon. PAYGP is a convenient way to price such a service for consumers as well as the producers. For producers, it makes the management of service capacity easier; and for the consumers, the mental accounting of on-spot payment is less burdensome.
Subscription or Pay as You Go: A Pricing Question for Infrequently Used Services
Project Team: | Sreelata Jonnalagedda and Patrali Chakrabarti |
Sponsor: | IIM Bangalore |
Project Status: | Ongoing (Initiated in 2011) |
Area: | Marketing |
Abstract: | Pay as you go pricing (PAYGP) appears to be the most logical pricing scheme for infrequently used services such as a spa or a saloon. PAYGP is a convenient way to price such a service for consumers as well as the producers. For producers, it makes the management of service capacity easier; and for the consumers, the mental accounting of on-spot payment is less burdensome. |