Name your price - a study of a pricing strategy
Pricing strategyName-your-priceOpportunismAdministrative manRationaleManagement of enterprisesFöretagsledningManagementBusiness and Economics
An industry in distress was the breeding ground for a noted pricing strategy, labeled name-your-price. The industry was the music industry and the pricing strategy bears reminiscence of how medieval buskers earned their living during the dark ages; by letting the customers decide how much the good was worth, embodied by a thrown coin into a hat or similar collector. Translated into the contemporary corporate environment of today, where technical innovations provides access to the intellectual property for free, a few mighty economic actors have once again turned to the strategy were it all started; letting the customer set the price. The hat has been replaced by a box for your credit card number and the live music by a MP3 file, but the similarity is striking. The business model have been applied in other industries as well with various levels of success, thus the purpose of this thesis is to set up a framework for where the name-your-price strategy is applicable. A theoretical approach was selected due to the diverse characteristics and aspects, but the work resulted in a model which is thought to give a fair description of what to consider if choosing the pricing strategy of the medieval troubadours.