Publishers are studying the effects of pricing models for open access publishing with regards to kinds of pricing models, complexity of the pricing models for first time users, and payment methods (Spann, Stich & Schmidt, 2017). The researchers further noted that the future of scientific publishing is uncertain, especially those which use subscription-based models. Access to studies published online has increased due to free and instant access. In a study conducted by Weisstein, Kukar-Kinney and Monroe, the results revealed that the publishers generate funds using different methods, but not subscriptions (2016). However, according to Roy, Rabbanee and Sharma (2016), these practices have contributed to debates with publishers starting to integrate different pricing models in their practices with some publishers supporting their open access strategy by offering subscription options while others focus on the alternative methods to raise income for funding their free access to the journal contents. In library economics and scholarly journal publishing (as cited in Spann, Stich & Schmidt, 2017), there are several ways of calculating the costs and benefits of the products and services offered. Nonetheless, the recent spiraling pricing models of journal subscriptions have attracted a significant amount of economic analysis: kinds of pricing models, complexity of the pricing models for first time users, and payment methods.
Kinds of Pricing Models
Publishers are studying the effects of pricing models for open access publishing with regards to kinds of pricing models. As revealed by Roy, Rabbanee and Sharma in their study, there are various journal publishers in the market practicing complex pricing models since the economic comparisons of the journal publishing systems have become complicated and subject to guessing (2016). Weisstein, Kukar-Kinney and Monroe (2016) supported their findings citing that with the rapid rising of journal subscription prices and the possibilities associated with electronic publishing, new developments in the business models have emerged: the open access model. However, there are studies that states that the price should be based on demand rather than costs and practicing otherwise is the main source of arising complexities (Spann et al., 2017). Institutions cannot compare the cost and benefits related to subscription and open-access based journals due to their differences in charges.
The kind of pricing model used by the publishers also present complex structures to the first-time users and payment methods. According to Weisstein, Kukar-Kinney and Monroe (2016), the cheap open-access journals have raised queries regarding the values which publishers add in the articles. In the publication industry, the pricing models are complex to understand. In their research, Roy, Rabbanee and Sharma (2016) opined that the greatest travesty is that scientific community is responsibility for carrying out peer review; they added that the main part of academic publication is free. However, the complexity comes in with the subscription-journal producers charging a lot of money annually for the scientists to access and read the articles. Spann, Stich and Schmidt noted that it makes no sense to receive the articles free and review them then charge the consumers expensively (2017). While most publishers are on the point that such views are misguided, Spann, Stich and Schmidt (2017) noted that researchers need appreciate the value which the publishers add to the article before publishing them. The commercial operations of the publishers are efficient and if they switch to open-access publishing to reduce fees, the scientists would consider cheaper options, which undermines the essential values such as editing.
Complexity of the Pricing Models for First-Time Users
Publishers are studying the effects of pricing models for open access publishing with regards to complexity of the pricing models for first time users. In their research, Weisstein, Kukar-Kinney and Monroe (2016) revealed that most of the open-access publishers depend on the gold open access model, which ensures that the study is availed online after the publication. Based on the model, the authors whose paper have been recognized are expected to pay article processing charges (APCs), which could run to huge amounts in dollars. Nonetheless, the scholars criticized the APCs concept citing that they exclude researchers with less capacity to fund publication of their papers. To address the challenge and gain an understanding of diverse role associated with APCs in the research world, some publishers have resorted to using Pay What You Want (PWYW), which is a model used to determine prices for the gold open-access publications (Krämer, Schmidt, Spann & Stich, 2017).
Krämer, Schmidt, Spann and Stich further cited that most publishers support the PWYW pricing model since it assists in achieving price discrimination and ensuring higher market penetration. On the other hand, the APCs excludes the authors if they cannot afford (Roy, Rabbanee & Sharma, 2016). The concept is important when introducing new journals. In addition, PWYW has been associated with initiating debates on funding and affordability of the APCs. These charges and counter-charges have contributed to the complex pricing models, especially for the first-time users since the financial sources of the industry are secretive. Even though journal list prices have been on the rise faster than inflation, the prices that customers wage to purchase the articles are hidden through non-disclosure agreement when signing (Spann et al., 2017). The researchers further argued that the actual costs incurred by the publishers during production is not known. These are some of the practices that demotivate the fast-time users. the neoclassical economic theory has predicted that buyers do not pay a5nything if the businesses do not compel them, with the experimental studies on PWYW and NYOP revealing that customers often pay prices that exceed the marginal costs attached to the item (Schmidt, Spann & Zeithammer, 2015).
As cited in Krämer, Schmidt, Spann, and Stich (2017), the variation in the pricing model is leading most researchers to query the academic publishing formation. For the researching and funding institutions, the issue has remained on how the available resources should be utilized during publication and the form of publishing it would take. For the publishers, the focus is whether the pricing model are sustainable and whether they are highly selective. According to Spann et al., (2017), the expensive journals can survive and succeed even when operating in an open-access market. Some of these fees are blocking the first-time users. Even though the fees seem refreshingly transparent for the experienced researcher, they are not the only method used in open-access publication to make money. As Roy, Rabbanee and Sharma note, much of the revenues are not those collected per paper (2016). Some papers are published at discounted or waived fees. The primary factor influencing the sustainability of PWYW pricing model for various publishers is whether the support community responsible for funding would permit the authors to pay willingly (Weisstein, Kukar-Kinney & Monroe, 2016).
Pricing Model and Payment Methods
Publishers are studying the effects of pricing models for open access publishing with regards to payment methods. According to Spann, Stich and Schmidt (2017) publishers have developed pricing models which give customers the pricing powers: PWYW, Name Your Own Price (NYOP), and Posted Pricing. In their research, they further revealed that the pricing models used in open-access publication determines accessibility and purchase. Therefore, they affect the payment methods. The study carried out by Spann et al., proved that PWYW is more aggressive than NYOP and posted pricing model and consequently, it is more effective in achieving full penetration into the market (2017). Research market considers the availability of resources critical in ensuring quality findings. For most products and services, is the marketing variables that consumers react to more than others. Research industry is highly sensitive to the prices, and with many publishers available online, prices determine the availability of the product in the market (Schmidt, Spann & Zeithammer, 2015). The publishers using the PWYW and NYOP should target customers with altruistic nature and have great care for the social impression, as payment methods have less influence on them. According to Weisstein, Kukar-Kinney and Monroe (2016), these pricing models are founded on the view of fair pricing if people assist the kind while punishing the unkind; they are creating a positive image for the publishers by enabling customers to set their prices based on their fair situation.
Payment methods are determined by the pricing models used by the publisher. In their research, Krämer, Schmidt, Spann, and Stich (2017) noted that most journals use two types of policies: the first method is making the article subscribed, which requires users to pay for the access and the second is paying for the open access publishing fee in which anyone freely downloads the manuscript from the journal website. However, the recent study conducted by Schmidt, Spann and Zeithammer (2015) posted a question on the payment methods for open access publication improve the chances of accepting the article instead of making it subscribed. There is a link between price, quality, and value. Customers use products’ prices to determine if they are affordable (Schmidt, Spann & Zeithammer, 2015). However, consumers also use to measure quality and value. In Weisstein, Kukar-Kinney, & Monroe (2016), the researchers revealed that when the buyers have uncertainty regarding the quality of the product, they must question the value and price. Some studies have refuted such findings citing that the economic treatment of price and consumer behavior is wrong.
Conclusion
Research reveals the facts that Publishers are studying the effects of pricing models for open access publishing with regards to kinds of pricing models, complexity of the pricing models for first time users, and payment methods. The digitization of the global economies has led to significant changes in the way businesses determine their prices. There are many pricing models used to determine the cost of publication in open-access: PWYW, NYOP, and price posting. The study revealed that researchers are keen to understand the impacts of these pricing models, their complexities, and associated payment methods. Although the analysis, most publishers use PWYW as an attractive marketing strategy to discriminate prices and involve customers in the pricing process. The method has proven to be effective, but with the changing tastes and preferences of the customers, some consumers believe that offering products and services at low prices means they have less value.
References
Krämer, F., Schmidt, K. M., Spann, M., & Stich, L. (2017). Delegating pricing power to customers: Pay What You Want or Name Your Own Price? Journal of Economic Behavior & Organization, 136, 125-140. doi:10.1016/j.jebo.2017.01.019
Roy, R., Rabbanee, F. K., & Sharma, P. (2016). Antecedents, outcomes, and mediating role of internal reference prices in pay-what-you-want (PWYW) pricing. Marketing Intelligence & Planning, 34(1), 117-136. doi:10.1108/mip-08-2015-0157
Schmidt, K. M., Spann, M., & Zeithammer, R. (2015). Pay What You Want as a Marketing Strategy in Monopolistic and Competitive Markets. Management Science, 61(6), 1217-1236. doi:10.1287/mnsc.2014.1946
Spann, M., Stich, L., & Schmidt, K. M. (2017). Pay what you want as a pricing model for open access publishing? Communications of the ACM, 60(11), 29-31. doi:10.1145/3140822
Spann, M., Zeithammer, R., Bertini, M., Haruvy, E., Jap, S. D., Koenigsberg, O., … Thomas, M. (2017). Beyond Posted Prices: The Past, Present, and Future of Participative Pricing Mechanisms. SSRN Electronic Journal, 2018(8), 121–136. Retrieved from https://doi.org/10.1007/s40547-017-0082-y
Weisstein, F. L., Kukar-Kinney, M., & Monroe, K. B. (2016). Determinants of consumers' response to pay-what-you-want pricing strategy on the Internet. Journal of Business Research, 69(10), 4313-4320. doi:10.1016/j.jbusres.2016.04.005
