Price structure gets golfers out on the links
Price structures can impact on usage. For example, John Gourville and Dilip Soman (2002) identified that annual membership payments result in club members using facilities heavily initially but declining subsequently. He found that quarterly payments stimulate spikes in demand every three months as members are reminded by their bank statements to get value by using the facilities. Therefore, price structures can be used to stimulate usage, and payment structures can be timed to even out demand across the year or meet other business objectives.
Action: Think how price structures can support desirable customer behaviour.
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