The effect of consumers’ power states on pay-what-you-want pricing

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Abstract

Based on the agentic–communal model of power, this study explores the influence and internal mechanism of consumers’ power states on pay-what-you-want pricing. Although prior research has offered foundational insights into customer behavior in pay-what-you-want contexts, many of the identified factors lack generalizability across different contexts. To address this limitation, the present study integrates both personal and social perspectives by examining power states as a central factor. The results show that individuals with a high sense of power pay less than individuals with a low sense of power in pay-what-you-want contexts and that the agentic–communal orientation mediates the effect of power states on the payment. Furthermore, when social motivation is salient, individuals with a high sense of power pay more and the payment difference between low-power and high-power individuals decreases. The findings not only contribute to the literature by deepening the understanding of how power states influence consumer behavior and identifying key antecedents of pay-what-you-want pricing decisions, but also provides a theoretical reference for marketers to formulate more targeted marketing strategies and improve marketing performance based on pay-what-you-want pricing.

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