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Contribution Details
| Type | Journal Article |
| Scope | Discipline-based scholarship |
| Title | Kish - where customers pay as THEY wish |
| Organization Unit | |
| Authors |
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| Item Subtype | Original Work |
| Refereed | Yes |
| Status | Published in final form |
| Language |
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| Journal Title | Review of Marketing Science |
| Publisher | De Gruyter |
| Geographical Reach | international |
| ISSN | 1546-5616 |
| Volume | 8 |
| Number | 2 |
| Page Range | 3 |
| Date | 2010 |
| Abstract Text | New restaurants often do not manage to succeed within a reasonable amount of time. Exotic restaurants especially face the problem that price promotions may not attract new customers because prospective customers might associate very low prices for unfamiliar food with a high functional risk. This paper describes how Pay-What-You-Want (PWYW), a new pricing mechanism, was successfully implemented at Kish, a moderately priced Persian restaurant in downtown Frankfurt. After the initial testing phase, which had the characteristics of a promotional offer, the restaurant decided to permanently offer its buffet lunch under PWYW conditions. We report the long-term effects of this decision as well as a simulation demonstrating that profitability is mainly based on ‘trading up’ the continuous inflow of new customers to the more profitable dining offer where prices are fixed. |
| Digital Object Identifier | 10.2202/1546-5616.1118 |
| Other Identification Number | merlin-id:14194 |
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