March 2010
Intermediate to advanced
224 pages
5h 24m
English
book
Smart Pricing: How Google, Priceline, and Leading Businesses Use Pricing Innovation for Profitability
by Jagmohan Raju, Z. John Zhang
Content preview from Smart Pricing: How Google, Priceline, and Leading Businesses Use Pricing Innovation for Profitability
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1. “Pay As You Wish” Pricing
“If it’s good enough, people will put a penny in the pot.”Chris Hufford, manager, Radiohead
On October 9, 2007, the English alternative rock band Radiohead began an experiment: Instead of pricing its music the conventional way, the band would let its fans pay whatever they wanted to download its latest 10-song album, In Rainbows. At the checkout page of the inrainbows.com website, visitors came to an empty price box. When they clicked on the box, a message appeared that said, “It’s up to you.” On the next page, another message appeared that said, “No, really, it’s up to you.”
Radiohead’s decision to leave pricing to its fans came after years of frustration with traditional distribution. The Oxfordshire-bred band ...
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