Misplaced Pages

#69930

52-474: The show has no advertisers and instead subsists entirely on donations. There are no guidelines for the amount and frequency of contributions; instead, these are left to the discretion of the listener, a model called "value for value" by the show's hosts. The show also relies on its listeners—dubbed "producers"—to provide artwork and audio clips. In July 2016, the show won the Podcast Award for Best Podcast in

104-475: A buyer-directed charity component to further increase buyer willingness to pay. This charity effect is similar to the research study noted in the Research section above. Humble Bundle also encourages buyers to "beat the average" by adding additional content for customers who pay above the current average purchase price. Repeated transactions A further enhancement is to use a series of repeated transactions. This

156-405: A decrease in overall satisfaction. Consider the number of choices in a simple supermarket . There are likely to be many different options for a single type of product. With so many to choose from, the customer might expect that one of the available options must be perfect for their needs and will have no drawbacks. This leads to expectations rarely being met, a significant psychological issue. In

208-468: A discussion of the show. No Agenda debuted in October 2007. Its premise was that the co-founder (Curry) and then vice-president (Dvorak) of mevio (until Oct. 2012) would have an unfiltered dialogue. The impetus for starting the show, according to Curry, was a 4-minute phone call made to Dvorak saying that they "should do a show together." Little thought was given to what the show would be about, in fact only

260-429: A flurry of studies, with particular attention to the behavioral economics aspects of PWYW—what motivates buyers to pay more than zero, and how can sellers structure the process to obtain desirable pricing levels? The first studies appeared in 2009: Kim et al. and Regner and Barria. In 2010, a large-scale experiment was conducted in an amusement park. Ayelet Gneezy , Uri Gneezy , Leif D. Nelson, and Amber Brown tested

312-424: A higher nominal price) for the product. Studies investigating the link between cognitive dissonance and impulse buying have shown that impulse buyers experience less cognitive dissonance when they are disappointed with their purchase. The main explanation for this is that impulse buyers go into the purchase already without high expectations. Another possible explanation, at least among more sophisticated buyers,

364-451: A husband who takes his wife to the most expensive restaurant in town for their anniversary only to find that the food and service does not meet his expectations might still be satisfied with his decision to go to the restaurant but have the intention to never return. In this extension of cognitive dissonance, the duality of satisfaction and intention are separate phenomena within buyer's remorse. In social psychology , "involvement" describes

416-426: A patient support organization) the average amount paid increased substantially (to $ 6.50). This significantly increased the firm's income, as well as generating a substantial charitable contribution. In a 2012 follow-up research paper, Gneezy and colleagues found PWYW may deter some customers from purchasing. Their results show: "individuals feel bad when they pay less than the 'appropriate' price, causing them to pass on

468-458: Is Ebook seller OpenBooks.com. Post-pricing separates the buying decision and the pricing decision. Consuming a product, call it a good, reduces information asymmetries about the good's quality, so the buyer is informed of the product's quality when they decide what to pay. Risk-averse buyers who would not purchase the good at a fixed price for fear of its quality (or would price at a discount in an ex ante PWYW system) can be enticed to purchase

520-434: Is a pricing strategy where buyers pay their desired amount for a given commodity. This amount can sometimes include zero. A minimum (floor) price may be set, and/or a suggested price may be indicated as guidance for the buyer. The buyer can select an amount higher or lower than the standard price for the commodity. Many common PWYW models set the price prior to a purchase ( ex ante ), but some defer price-setting until after

572-414: Is a result of the brain's instinctive (and rational) treatment of the transaction costs involved in acquiring a product as part of the purchase price of that product: The more involvement that a purchase requires or the purchaser puts in, the more dissonance or psychological discomfort the buyer will experience if dissatisfied with the purchase, just as if the purchaser had spent more "on paper" (i.e., paid

SECTION 10

#1733085567070

624-569: Is a theory by American psychologist Barry Schwartz claiming that, after a certain threshold is reached, an increase in the number of choices will cause a significant amount of psychological distress. This distress, according to Professor Schwartz, can manifest itself in many ways. One way is through buyer's remorse. The theory states that buyer's remorse is created through increasing opportunity costs associated with increased choices. Opportunity costs associated with alternative choices compound and create strong feelings of dissonance and remorse. As

676-407: Is called FairPay ("Fair PWYW"). This shifts the scope from a single digital content transaction to an ongoing relationship over a series of transactions. It builds on the benefits of ex post PWYW pricing (setting the price after consumption, when product's value is known) and adds a feedback process for tracking individual buyers' reputations for paying fairly, as assessed by the seller. It then uses

728-468: Is less successful as a competitive strategy because it does not drive traditional posted-price sellers out of the market. Instead, the existence of a posted-price competitor reduces buyers' payments and prevents the PWYW seller from fully penetrating the market. When given the choice, most sellers opt for setting a posted price rather than a PWYW pricing strategy. Another PWYW experiment looked at determinants for

780-501: Is sometimes used synonymously, but this is more oriented to charity or social uses and based on ability to pay. PWYW is more broadly oriented to perceived value in combination with willingness and ability to pay. PWYW has long existed on the margins of the economy, such as for tips, street performers, and charities. It has been gaining interest in wider industries. After the Radiohead experiment, economics and business researchers began

832-510: Is that persons who are dissatisfied with a purchase that they made on impulse may blame that dissatisfaction at least in part on their own failure to thoroughly consider whether the product will satisfy their prior expectations even if it performs as advertised, thus blaming any discrepancy at least in part on themselves (via their own impulsivity) rather than on the purchased product (via any sort of difference between its promised and its actual attributes and/or performance). The paradox of choice

884-404: Is the money back guarantee , a guarantee from the retailer that the product will meet the customer's needs or the customer is entitled to a full refund. This technique is highly successful at lessening buyer's remorse because it immediately makes the decision a changeable one. The unchangeability of an "all-sales-final" purchase can lead to a larger amount of psychological discomfort at the point of

936-482: Is the inclusion of a coupon towards a future purchase at the point of sale. This has many benefits for both the consumer and retailer. First, the consumer is more likely to return to the store with the coupon, which will result in a higher percentage of repeat customers. Each successive time a purchase is made and is deemed satisfactory, buyer's remorse is less likely to be experienced. Customers can justify their purchases with product performance. Another technique used

988-442: Is the resources invested in a purchase (material, intellectual, psychological, and others) and effort is directly related to the importance of the purchase. Purchases that require high amounts of effort but do not bear high rewards are likely to lead to buyer's remorse. Responsibility refers to the fact that the purchase is done out of free will. Buyers that have no choice on the purchase will be less likely to feel dissonance because it

1040-448: Is the sense of regret after having made a purchase. It is frequently associated with the purchase of an expensive item such as a vehicle or real estate. Buyer's remorse is thought to stem from cognitive dissonance , specifically post-decision dissonance, that arises when a person must make a difficult decision, such as a heavily invested purchase between two similarly appealing alternatives. Factors that affect buyer's remorse may include

1092-479: The Harvard Business Review Blog. Fair PWYW integrates PWYW into a feedback/control cycle which tries to create value for both the buyer and seller. It attempts to reflect the customer's dynamic perceptions of value and real willingness to pay - this enables it to optimize co-creation of customer value over the course of the buyer and seller's relationship. Buyer%27s remorse Buyer's remorse

SECTION 20

#1733085567070

1144-447: The PWYW model which can improve its profitability while maintaining its buyer appeal. Ex post pricing One simple enhancement is to shift the time of pricing from the usual practice of ex ante pricing, which is done at the initiation of a transaction and prior to the consumption experience, to ex post pricing, which defers pricing to a follow-up step after the consumption experience. A commercial use that offers this payment choice

1196-447: The PWYW price paid by consumers: fairness (proper compensation to the seller), loyalty to the seller, price consciousness (focus on paying a low price), and usage (how much the consumer will use the product). The study found that price consciousness negatively influenced the price paid, while usage and loyalty positively influenced the price paid for the product. Fairness was found to have no significant effect. Further research focused on

1248-656: The category "News & Politics." In September 2013, the show was nominated for Podcast Awards in two categories, "People's Choice" and "Politics / News". Talkers Magazine featured the podcast in their "Frontier Fifty", an alphabetically sorted list containing a "Selection of Outstanding Talk Media Webcasters". In December 2009, the show announced they had reached 450,000 listeners. During an appearance on The Joe Rogan Experience in July 2021, Curry stated that No Agenda has 1–1.4 million listeners per episode. A primer has been produced for newer listeners, both as an introduction and

1300-412: The challenging and sometimes costly task of setting the "right" price (which may vary for different market segments). For both buyers and sellers, it changes an adversarial zero-sum conflict centered on price into a friendly win-win exchange centered on value and trust. It also accounts for varying value perceptions and price sensitivities among buyers. While most uses of PWYW have been at the margins of

1352-422: The direction of news and political commentary. Jingles have been introduced, and have evolved into catch phrases. The show discusses current news and conspiracy theories , with the hosts discussing topics in response to their belief that the mainstream media glosses over what they see as the real facts. Celebrity gossip and other soft news stories are brought up for ironic effect, with the one that has garnered

1404-470: The economy, or for special promotions, there are emerging efforts to expand its utility to broader and more regular use (see " Enhanced forms " below). Further reasons for sellers to implement PWYW pricing include price discrimination and market penetration. Price discrimination occurs automatically in a PWYW model since buyers with higher valuations of the product will choose to pay a higher price. Thus, price discrimination could result in higher revenues for

1456-410: The effectiveness of PWYW by selling roller coaster photos to park visitors. Their results show although many more people bought the photo under a PWYW model, the average price paid is very low ($ 0.92), resulting in no income increase for the firm. However, when PWYW was coupled with a charitable cause (buyers were informed they could pay what they wanted AND that half of the paid amount would be donated to

1508-474: The effort, investment, and commitment in purchases. Involvement is often coupled with cognitive dissonance to explain buyer's remorse. In most cases, buyer's remorse resulting from a purchase that demands high involvement and results in cognitive dissonance is, all else (most notably nominal purchase price) being equal, harder to overcome than is buyer's remorse resulting from a purchase that demands low involvement and results in cognitive dissonance. This phenomenon

1560-416: The example of a supermarket, buying the wrong product may not be a significant mistake. For more involved decisions, the consequences of a wrong decision are significant. Choice-supportive bias leads to an increased liking of one's choices, including purchases. This seems to contradict the concept of buyer's remorse. However, this choice enhancement can collapse when presented with even minor indication that

1612-469: The experience of consumption ( ex post ) (similar to tipping ). PWYW is a buyer-centered form of participative pricing, also referred to as co-pricing (as an aspect of the co-creation of value). PWYW models can be sometimes successful as they eliminate many disadvantages of conventional pricing. These models can eliminate fear of whether a product is worth a given set price and the related risk of disappointment (" buyer's remorse "). For sellers it removes

No Agenda - Misplaced Pages Continue

1664-443: The fairness reputation data to let the seller determine what further offers to extend to that particular buyer. It seeks to incentivize fair pricing by buyers (to maintain a good reputation, and thus be eligible for future offers), and to enable sellers to limit their risk on each transaction in accord with the buyer's reputation. The Fair PWYW architecture and how it builds on modern digital content pricing strategy has been outlined on

1716-463: The flagship social media platform for the show until early 2024 when it was closed down. A goal of this platform was to avoid the censorship, restrictions, and rules found on many " Big Tech " social media platforms. It ran  Mastodon  software and was connected to a network of distributed social media platforms known as the  Fediverse . Pay what you want Pay what you want (or PWYW , also referred to as value-for-value model )

1768-413: The item) does not match their attitude (their expectation of the purchased item). The following scale was developed by Sweeney, Hausknecht, and Soutar in a study to investigate three elements (one emotional, two cognitive) of buyer's remorse. There may be a duality of attitudes that explain how a person may be satisfied with their purchase but have the intention to never repeat the purchase. For example,

1820-487: The long-term perspective of pay what you want. A study conducted by researchers of the Ruhr-University of Bochum examines repeated transactions in a pay what you want environment. By using latent growth modeling they find that the average price paid decreases significantly; yet the decrease in price paid reduces with every transaction. They further show customers' preference for fairness and price conscientiousness influence

1872-560: The most attention often being named "Distraction of the week". The podcast does not accept advertising and is supported by the listeners to prevent conflicts of interest. Through this direct listener-supported model, those that contribute amounts above a predetermined level are referred to as executive producers . No Agenda was named to Talkers Magazine 's Frontier Fifty list for 2011, a list of 'Outstanding Media Webcasters.' The show received five out of five microphones in review published by Podcast Magazine . No Agenda Social served as

1924-566: The name was agreed upon before the first show was recorded. The original tagline of No Agenda was that it would be the show with "no sponsors , jingles , and of course no agenda." The show's only sound effect came during the closing minute, where the jazz song On the Seventh Day by the Marriott Jazz Quintet played as the hosts signed off. Topics included the news of the day, restaurant reviews, and family. The show gradually moved in

1976-401: The number of choices increase, it is easier to imagine a different choice that may have been better than the one selected. The constant comparison to one's expectations induces regret , which reduces the satisfaction of any decision, even if it fills the individual's needs. When there are many alternatives to consider, it is easy to imagine the attractive features of rejected choices and there is

2028-452: The opportunity to purchase the product altogether". In a series of controlled laboratory experiments, Klaus M. Schmidt, Martin Spann and Robert Zeithammer (2014) show that outcome-based social preferences and strategic considerations to keep the seller in the market can explain why and how much buyers voluntarily pay to a PWYW seller. They find that PWYW can be viable in a monopolistic market, but

2080-454: The price chosen by consumers of the application iProduct, which provided tutorials and lessons for potential application developers on the App Store (iOS) . The application was offered as free with in-app purchases, including a gratuity mechanism that allowed users to pay/donate what they wanted for the projects included in the app. The study tested the significance of four determinants in deciding

2132-493: The product using an ex post PWYW system. The ex post PWYW system works as a signal of quality to attract risk-averse buyers. This might be a profitable strategy if it attracts risk-averse buyers, increasing the consumer base and allowing economies of scale in production. Charity elements Another enhancement is to add a charity element when selling digital content. This is used in the Humble Indie Bundle , which has

No Agenda - Misplaced Pages Continue

2184-460: The psychological theory of cognitive dissonance , a state of psychological discomfort when at least two elements of cognition are in opposition, and which motivates the person to appease it by changing how they think about the situation. Buyer's remorse is an example of post-decision dissonance, where a person is stressed by a made decision and seeks to decrease their discomfort. The buyer may change their behavior, their feelings, their knowledge about

2236-430: The purchase did not meet the buyer's predominant goals. Indeed, if the purchase meets an individual's goals there will be less post-purchase dissonance which means there will be less remorse and greater decision satisfaction. Buyer's remorse is a powerful experience for consumers. For years, marketers have been attempting to reduce buyer's remorse through many different methods. One specific technique employed by marketers

2288-465: The purchase or claim to know better alternatives. The remorse associated with some extreme shopping activity may be, again, a sign of some deeper disquiet. However, normal "buyer's remorse" should not be confused with the complex emotional dynamics of " shopaholic " behavior, just as a binge on a special occasion should not be confused with a serious eating disorder such as bulimia . The phenomenon of buyer's remorse has been generally associated with

2340-400: The purchase, they are more fully able to experience the negative aspects: all the opportunity costs of the purchase, and a reduction in purchasing power . Also, before the purchase, the buyer has a full array of options, including not purchasing; afterwards, their options have been reduced to: Buyer's remorse can also be caused or increased by worrying that other people may later question

2392-414: The resources invested, the involvement of the purchaser, whether the purchase is compatible with the purchaser's goals, and feelings encountered post-purchase that include regret. The remorse may be caused by various factors, such as: the person purchased a product now rather than waiting, the item was purchased in an ethically unsound way, the property was purchased on borrowed money, the purchased object

2444-628: The seller if costs are sufficiently low. PWYW is also an effective tool for penetrating a new market, perhaps to introduce a new brand, as even consumers with a very low valuation can pay small amounts for the same product. The success of PWYW models depends on several factors. For one source, a successful PWYW model has a: This strategy tends to be more effective when relating to digital products or services. Other names include "pay what you wish", "pay what you like", "pay as you want", "pay what you feel", "pay as you wish", "pay as you like", "pay what you will", and "pay as you will". " Pay what you can "

2496-556: The steepness of the individual price curves. A broad review of the literature on PWYW and related forms of voluntary payment (tipping, donations, and gifts) by Natter and Kaufmann, published in 2015, examines many relevant factors as they relate to voluntary pricing strategies. These factors include product characteristics, consumer-related characteristics, situational variables, relational techniques, and reference prices. The review also addresses economic and communicative success, and underlying market motives. There are several changes to

2548-467: The world (what they thought the purchased item would be like), or even their knowledge of themselves. The more resources such as money, time, and cognitive resources that are invested into making a purchase, the more likely the buyer will experience buyer's remorse or psychological discomfort. Psychologists have focused on three main elements that are related to cognitive dissonance and buyer's remorse. They are: effort, responsibility, and commitment. Effort

2600-415: The wrong choice was made. While initial positivity towards a decision is greater for more difficult decisions, this positivity also has greater vulnerability to evidence of an incorrect choice. This effect is larger when the purchaser is more involved in the decision. However, buyer's remorse can be reduced by post-purchase confirmation, though post-purchase communication may aggravate a buyer's discomfort if

2652-470: Was not of their own volition. Commitment refers to the continuing of an action. The purchase of an automobile has high commitment because the car must usually be driven for a long duration. Purchases with higher commitment will lead to more buyer's remorse. Low rewards matched with these three conditions will most likely result in buyer's remorse via cognitive dissonance. The buyer feels anxiety and psychological discomfort because their behavior (the purchase of

SECTION 50

#1733085567070

2704-417: Was something that would not be acceptable to others, or the purchased object was something that the buyer later questions the value and need of. In the phase before purchasing, a prospective buyer often feels positive emotions associated with a purchase (desire, a sense of heightened possibilities, and an anticipation of the enjoyment that will accompany using the product, for example); afterwards, having made

#69930