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J·BJon BishopIndependent growth marketer

Pricing · Field experiment and pricing model

Paying with Money or Effort: Pricing When Customers Anticipate Hassle

Journal of Marketing Research · 2012

Anja Lambrecht, Catherine Tucker

Summary

The field experiment provides evidence that customers prefer contracts that match periods of lower benefits caused by hassle costs with lower payments.

For your marketing

Possible founder application

Consider whether customers' willingness to pay changes when setup, migration or usage requires effort. Test packaging and timing against observed adoption and retention rather than assuming a fixed price is experienced uniformly.

Reported result

What the study found

The field experiment provides evidence that customers prefer contracts that match periods of lower benefits caused by hassle costs with lower payments.

Research question

What the authors investigated

How should firms price when customers anticipate hassle or effort that varies over time?

Design

A field experiment compares pricing contracts that align payment levels with periods in which customers anticipate different hassle costs.

Sample and setting

Customers in a service-pricing field experiment; the publisher summary reviewed does not provide the sample size or full industry details.

Scope and transfer

Limitations to keep in view

The study's service and hassle context are specific. Its abstract does not provide effect sizes, and software usage effort may differ from the costs studied.

Research sources

Journal of Marketing Research publisher summary and DOI metadata; abstract-level profile.

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