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Static and dynamic pricing strategies: how unique for nonprofits?

In: Handbook of Research on Nonprofit Economics and Management

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  • Bruce A. Seaman

Abstract

Coherent pricing strategies are important to for-profit firms, but can also be vital to nonprofit organizations. This is clearly true for the arts, education, and hospital and health-care sectors, but can also extend to nonprofits providing vital social services to low-income and otherwise vulnerable populations. By clarifying both static and dynamic pricing strategies that have been successfully used by for-profits, and examining their current application and potential expansion within the nonprofit sector, the striking similarities as well as ongoing distinctions between the two sectors are clarified. Especially in a political climate threatening to be less generous to nonprofits committed to diverse missions, understanding how to generate more earned revenue via shrewd price discrimination, tying/bundling, and yield management and peak-load pricing strategies is vital. Classic research results are incorporated with current theoretical and empirical developments to provide a comprehensive picture of pricing in the nonprofit sector.

Suggested Citation

  • Bruce A. Seaman, 2018. "Static and dynamic pricing strategies: how unique for nonprofits?," Chapters, in: Bruce A. Seaman & Dennis R. Young (ed.), Handbook of Research on Nonprofit Economics and Management, chapter 10, pages 199-224, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:16909_10
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    Cited by:

    1. Ozhegova, Alina & Ozhegov, Evgeniy M., 2020. "Segmentation of theatre audiences: A latent class approach for combined data," Journal of choice modelling, Elsevier, vol. 37(C).

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