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FairPay

Book Description

Businesses recognize the need to become more customer focused, but struggle to see how. At the same time, our logic and business models for selling digital content and services are broken. Digital relationships enable services at low cost, but we still focus on discrete transactions at prices that consumers see as exploitive. This book explains how a revolutionary approach to pricing can solve these problems. It proposes a new architecture for cooperative service relationships that is personalized and continuously adaptive. FairPay operationalizes a new logic for conducting ongoing business relationships that adaptively seek win-win value propositions in which price reflects value. At a practical level, the author explains how this can be applied to transform a range of industries -- with motivations, and guidelines for implementation in stages -- to enhance loyalty, market share, and profits. At a conceptual level, he explores how novel processes for participative co-pricing can dynamically seek agreement on win-win value propositions -- to approach optimal price discrimination over a series of transactions. FairPay applies modern behavioral economics in choice architectures that enable deep relationship marketing. An online supplement is provided.

Table of Contents

  1. Cover
  2. Title
  3. Copyright
  4. Foreword by Adrian Payne
  5. Preface
  6. Acknowledgments
  7. Prolog: A Thought Experiment—Imagine a Value-Pricing Demon …
  8. Part I: The Big Picture—A New Logic
    1. Chapter 1. Introduction—Digital Disruption and Yesterday’s Logic
    2. Chapter 2. Business Overview—Part 1: Basic Concepts—How and Why
    3. Chapter 3. Business Overview—Part 2: Rethinking Prices
    4. Chapter 4. Brief Example: Digital Content Subscription Businesses
    5. Chapter 5. Conceptual Perspectives
    6. Chapter 6. A Top Management Perspective
  9. Part II: Applications in Industry
    1. Chapter 7. Making It Work—Operational Details, Tools, Continuous Learning and Adaptation
    2. Chapter 8. Case Study: Journalism, Newspapers, Magazines, Video
    3. Chapter 9. Variations: Music (and Games)
    4. Chapter 10. More Variations: App Stores, Indies, E-Books, Virality
    5. Chapter 11. FairPay for Non-Digital Services
    6. Chapter 12. FairPay for Nonprofit Organizations
    7. Chapter 13. FairPay Reputation Management—Databases and Platforms
    8. Chapter 14. Learning the New Logic—Low-Risk Testing, Sweet Spots, and Continuous Adaptation
    9. Chapter 15. Increasing Sophistication and Variety
    10. Chapter 16. Proving the Concept
  10. Part III: Needs and Perspectives
    1. Chapter 17. Practical Business Comparison to Conventional Methods
    2. Chapter 18. Customer-Hostile Value Propositions
    3. Chapter 19. Producer/Creator Perspectives—Sustainable Value Propositions and Compensation Through the Supply Chain
  11. Part IV: Toward a New Economics
    1. Chapter 20. Why It Works—Behavioral Economics, Psychology, and Game Theory
    2. Chapter 21. New Dimensions of Value—Customer Contributions
    3. Chapter 22. Societal Perspectives—Markets That Center on Human Values
    4. Chapter 23. Competing on Vendor Lifetime Value
    5. Chapter 24. Taking Action—Implementation of FairPay
  12. The FairPay Manifesto
  13. References
  14. Index
  15. Adpage