What price will win: “Fixed” vs “Pay what you want (PWYW)” vs “PWYW + 50% goes to charity”? [study]

The University of California conducted their research at a theme park.

A total of 113,047 people rode a roller coaster attraction and had their picture taken while on the ride.

The study investigated 4 distinct pricing points using A/B splits. The net proceeds are as follows (= sales less manufacturing expenses minus donations):

Control price $12.95. Resulted in $0.063 of profit per rider.

Price #1. $12.95 + 50% goes to charity. Profit: $0.036 (43% decrease).

Price #2. Pay what you want (including $0). Profit: $0 (bankruptcy 🙂 ).

Price #3. Pay what you want + 50% goes to charity. Profit: $0.078 (+23%).

 

Source: marketing.wharton.upenn.edu

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