Pricing of Consumer Innovations

Consumers are an important source of innovation. They primarily innovate out of non-monetary motivations, such as use interest, learning and social rewards. Nonetheless, increasing numbers of such consumer and user innovators recently began diffusing their creations on online marketplaces, where they price and commercialize them. This empirical work reveals that, compared to firms, consumers’ different motivations to innovate affect their pricing decisions systematically in terms of cost, customer quality and competition considerations. Furthermore, it shows that customers’ price evaluations differ consistently when a product is marketed as created by consumers.
[2022]

Compartir: