Customer Value-Based Pricing Mechanisms:

In market transactions that are based on exchange value, it is difficult for firms to directly obtain compensation as an outcome of their involvement in value creation in the lifeworld of consumers. This limitation represents a key challenge in realizing monetary outcomes from value co-creation marketing. This study focuses on the Pay-What-You-Want (PWYW) pricing mechanism as a potential method for firms to capture direct revenue generated through value co-creation with customers. Under the PWYW system, customers determine the amount they pay according to the perceived value of the experience. Although this approach poses several challenges, it may also lead to outcomes that reflect co-created value. To examine this potential, we empirically investigated the admission fee system of a municipal aquarium that adopted PWYW pricing. The results showed that the aquarium recorded higher total revenue than under the regular admission fee system, and that customers’ perceived use value was, to some extent, reflected in the prices they paid. The findings provide insights into mechanisms through which firms can monetize the outcomes of value co-creation.