Abundance, 127–130
Actor-to-Actor (A2A) hubs, 150
Adam Smith’s demon of scarcity, 53–54
Adaptation
FairPay process, 11, 72
parameterized architectures and policies, 165–167
personalized packaging and product design, 167–168
Ad-blocking, 188–190
All you can eat (AYCE) subscriptions, 113
Ante-pricing, 176
App stores, 119–122
Behavioral economics, 11–12, 203–206
Behavioral engineering, 86–87
Big Data, 38–39
Bundled subscription
pre-bundled, 177, 179
post-bundled, 177, 179
Business models, 36–38
Cloud of value marketing, 38–39, 61–62
Co-creation of value, 59–60
Communal norms, 21–23, 86, 138, 150, 160, 198–200
Computer-mediated commercial dialog, 39
Consumer relationships, 51–53
Co-pricing, 59–60
Creator perspectives, 193–194
Creators Direct-to-Consumers (D2C), 124–126
Customer-centric revolution, 38–39
Customer journeys, 18–19, 34–36
Customer lifetime value, x, 4, 19, 42, 153, 220
Customer relationships, 36–38
Customer response, 170–171
Dialogs about value, 5, 8, 18–19, 32, 34–39, 56–58, 63–64, 86–89, 212–213
Digital businesses
fundamental problems, 5
in networked markets, 4–5
Digital content subscription. See Subscriptions
Dimensions of value, 209–210
Dynamic pricing, 24, 89–90
E-Books, 126–127
Empowerment, 63–64
Entertainment video, 109
Entrepreneurial opportunity, 65–66, 149
Experience goods, 22–23, 83–84
Explicit expressions of value, 39
Extend it forward, 72
Fairness and piracy, 187
FairPay, 177, 180
adaptation process, 165–168
basic economics, 12
behavioral economics, 11–12
behavioral engineering, 86–87
consumer relationships, 51–53
control and predictability, 69–70
as co-pricing, 59–60
core feedback/control cycle, 70–72
core mechanism, 9–11
core process, 6–7
description, 3–4
factors, 6
flexible, extensible architecture, 81
free trial/survey mode, 162–164
game-based marketing, 87–88
game theory, 12
hierarchy of levels, 65
implementation of, 221–223
invisible handshake, 54–58
item sales, 83
loyalty loops, 12
loyalty programs, 87–88
non-digital services, 133–139
nonprofit organizations, 141–143
participative process, 7–8, 71
policy settings, 79–81
price discrimination, 89–91
pro-bono basis, 14
as repeated game, 207
reputation management, 145–150
retention management, 151–156
Richer view of, 75–79
subscription-oriented vs. item-oriented sales, 84–86
subscription relationships, 82–83
testing new customer acquisition, 161
transitioning from free or ad-supported, 161–162
working areas, 12–14
FairPay Manifesto, 223
Flat rate subscriptions, 113
Framing, 73–75
Freemium, 5, 24, 42, 78, 81, 177, 179, 181–183
Freemium subscription, 177, 179
Fuzziness, in pricing, 31
Game-based marketing, 87–88
Games, 111–118
Game theory, 12
Gated FairPay offer, 70
Goods-Dominant Logic, 60
Hard paywall subscription, 177, 179
Implicit signals of value, 39
Indies, 122–124
Internet of Things (IoT), 38–39
Invisible handshake, 54–58
IoT. See Internet of Things
Item-oriented pricing strategies, 177, 179–180
Item-oriented sales, 83–86
Item sales, 83
Item unit sale
bundled, 177, 180
flat, 177, 179
volume discount, 177, 180
personalized by seller, 177, 180
Journalism, 93–100
entertainment video, 109
news aggregators, 108
patronizing, 102–104
spectrum of patronship, 106–108
value proposition of, 104–106
Known buyers, 146
Loyalty loops, 12
Loyalty programs, 87–88
Marketing theory, 106
Micropayments, 108, 177, 180
Music, 111–118
New Ecosystems of Value, 149–150
News aggregators, 108–109
Newspapers, 93–109
Non-digital services
costly real products, 136
price floor, 137–139
trial coupons, 133–136
Nonprofit organizations, 141–143
Nudges, 214–215
Outcomes-based pricing, 6, 60
Participative pricing, 8, 59–60, 71–73, 176–177, 180
Participative process, 7
Paywall, 8, 27–29, 77–78, 102–104, 177, 179
Pay What You Want (PWYW) pricing, 69, 135, 166, 177, 180, 197–203, 217–218
Perceived value tracking, 176
Performance-based pricing, 6
PIPA. See Protect IP Act
Piracy, 187–188
Post-bundling, 178, 190–192
Post-pricing, 176, 178
Pre-bundling/package pricing, 178
Premium Club/Patron segments, 157–160
Price discrimination, 72, 89–91
Price-Dominant Logic, 61
Price floor, 137–139
Price it backward, 72
Pricing
cloud of value marketing, 38–39
computer-mediated commercial dialog, 39
crisis for digital, 49
customer relationships, 36–38
discovery engine, 33–34
functions of, 21–22
fuzziness in, 31
invisible handshake, 17–18
negotiations, 32–33
paradox of, 22–23
participative, 59–60
personalization of, 25–27
power of, 30–31
psychology of, 27–29
reflecting value, 15–17
rethinking of, 23–24
as a service platforms, 149–150
strategies, 175–180
testing at low risk, 40
on transaction cycles, 29–30
Win–Win customer journeys, 18–19, 34–36
Proactive retention, 156–157
Pro-bono basis, FairPay, 14
Producer perspectives, 193–194
Protect IP Act (PIPA), 186
Pure ante-pricing, 178
Real products, 136
Relationship marketing, 4, 22
Repeated game, 207
Reputation, 63–64
databases, 146–148
description, 145
entrepreneur, 149
known buyers, 146
new Ecosystems of Value, 149–150
platforms, 146
unknown buyers, 146
Retention
adaptively customizing offers, 155–156
definition, 151
key to profitability, 153–154
proactive, 156–157
stages of development, 155–157
Richer view, FairPay process, 75–79
Sample FairPay offer, 45–47
Service-Dominant Logic, 60
Service relationships, 18–19
Shared social responsibility, 217–218
Shared value, 211–214
Social value orientation, 198–200
Societal perspectives
nudges, 214–215
shared social responsibility and pricing, 217–218
shared value, 211–214
values, 215–216
SOPA. See Stop Online Piracy Act Stop Online Piracy Act (SOPA), 186
Subscription economy, 100–102
Subscription-oriented pricing strategies, 177, 179
Subscription-oriented vs. item-oriented sales, 84–86
Subscription relationships, 82–83
Subscriptions
description, 42
examples of, 41
FairPay process, 42–43
flat rate, 113
quality services, 44
Superdistribution, 130–131
Supply chain, 193
Survey mode, 162–164
Sustainable market, 58–59
Sweet spots, 152
Tiered subscription, 177, 179
Tipping, 206–207
Transitioning from free or ad-supported FairPay, 161–162
Transparency, 88–89
Trial coupons, 133–135
Trial mode, 162–164
Trials and testing, 151–164, 169–170
True post-pricing, 178
Unknown buyers, 146
Usage-priced subscription
flat per unit, 177, 179
volume discount, 177, 179
Usage pricing, 178
Value-based pricing, xvii–xviii, 6, 9, 16, 35, 76, 106, 176–177, 180
Value-Dominant Logic, 61–62
Value gap, 112
Value-pricing demon, 49–51
Value proposition, 114–116
Vendor lifetime value, 219–220
Video, 93–109
Virality, 130–131
Viral superdistribution, 130–131
Volume-discounted usage pricing, 178
Win–Win customer journeys, 18–19, 34–36