Week two Lesson A
Sharing Economy >> they digital they run on a website or app>> they grant temporary access >> resources are from other users
company must recruit customers and providers
uber now is moving to have its own cars
3- lendingclub.com (peer to peer lending money)
Which of the following are characteristics of sharing economy firms?
Access not ownership
The individuals who provide crowdsourced resources are often called “Prosumers”
We will then examine emerging digital concepts: Pay What You Want (PWYW) and Freemium pricing strategies.
Understand the pricing aspect of the marketing mix.
Appreciate how digital tools are changing how products are priced.
Learn about the Freemium model and how this pricing strategy works.
Learn what Pay What You Want (PWYW) is and how this pricing strategy works.
Analyze a real-world case that employs a PWYW pricing strategy.
1- break-even analysis
2- Price elasticity
3- Reference price
Price strategy >> by firms
Price knowledge among customers
1- cost-plus pricing
2- competitor-based pricing
3- value-based pricing
cost-plus pricing cost of manufacture or acquire the product plus markup percentage
value-based pricing the value of masks was 70 cents and then during the high death in New York it was $7 per mask
Price Knowledge most people know how much it will cost a product or service or they have a good idea.
Pay What You Want PWYW
price segmentation, specialprices for students and old people
strategies of PWYW
for example on bakery one bag of bread to give to any person who asks, customers could pay extra to add to the bag for new persons who come in?
for example on a digital product there is no cost to the firm to offer a free product
question: would you pay for something which has the option not to charge if you dont want to? would you give them some money?
comments are always positive even when negative
creators of content
create an account at
important resource to read