"PWYW" pricing model vs "Charity" (study)

A study was conducted by the University of California at an amusement park.

113,047 participants who rode a roller coaster attraction were photographed during the ride and later chose whether to purchase a print of the photo.

Researchers A/B tested 4 different prices. Here are the resulting profits (= Revenue minus Production Costs and minus Charity):

Control price $12.95. Resulted in $0.063 of profit per rider.
Price #1. $12.95 + 50% goes to charity. Profit: $0.036 (43% decrease).
Price #2. Pay what you want (including $0). Profit: $0 (bankruptcy :) ).
Price #3. Pay what you want + 50% goes to charity. Profit: $0.078 (+23%).

Source: marketing.wharton.upenn.edu


Cheers,
Charlie Patel ;)



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